COLUMBUS, Ohio (AdAge.com) -- It's been a year since the first Red T-shirts hit Gap shelves in London, and a parade of celebrity-splashed events has
Costly Red Campaign Reaps Meager $18 Million
followed: Steven Spielberg smiling down from billboards in San
Francisco; Christy Turlington striking a yoga pose in a New
Yorker ad; Bono cruising Chicago's Michigan Avenue with Oprah
Winfrey, eagerly snapping up Red products; Chris Rock appearing in
Motorola TV spots ("Use Red, nobody's dead"); and the Red room at
the Grammy Awards. So you'd expect the money raised to be, well,
big, right? Maybe $50 million, or even $100 million.
Try again: The tally raised worldwide is $18 million.
The disproportionate ratio between the marketing outlay and the
money raised is drawing concern among nonprofit watchdogs,
cause-marketing experts and even executives in the ad business. It
threatens to spur a backlash, not just against the Red campaign --
which ambitiously set out to change the cause-marketing model by
allowing partners to profit from charity -- but also for the brands
involved.
Enormous outlay
By any measure, the buzz has been extraordinary and the collective
marketing outlay by Gap, Apple and Motorola has been enormous, with
some estimates as high as $100 million. Gap alone spent $7.8
million of its $58 million outlay on Red during last year's fourth
quarter, according to Nielsen Media Research's Nielsen Adviews.
But contributions don't seem to be living up to the hype. Richard
Feachem, executive director of the Global Fund to Fight AIDS,
Tuberculosis and Malaria, the recipient of money raised by Red,
told The Boston Globe in December, "We may be over the
$100 million mark by the end of Christmas."
Rajesh Anandan, the Global Fund's head of private-sector
partnerships, said Mr. Feachem was misquoted, and defended the
efforts by Red to increase the Global Fund's
private-sector donations, which totaled just $5 million from 2002
to 2005. (The U.S. Congress just approved a $724 million pledge to
the Global Fund, on top of $1.9 billion already given and $650
million from the Bill & Melinda Gates Foundation.)
'Hugely frontloaded'
"Red has done as much as we could have hoped for in the short time
it has been up and running," he said, adding: "The launch cost of
this kind of campaign is going to be hugely frontloaded. It's a
very costly exercise."
Julie Cordua, VP-marketing at Red and a former Motorola marketing
exec and director-buzz marketing at Helio, said the outlay by the
program's partners must be understood within the context of the
campaign's goal: sustainability. "It's not a charity program of
them writing a one-time check. It has to make good business sense
for the company so the money will continue to flow to the Global
Fund over time." She added that since many of Red's partners
haven't closed their books yet on 2006, more funds likely will be
added to the $18 million.
But is the rise of philanthropic fashionistas decked out in Red
T-shirts and iPods really the best way to save a child dying of
AIDS in Africa?
Parody mocks Bono
The campaign's inherent appeal to conspicuous consumption has
spurred a parody by a group of San Francisco designers and artists,
who take issue with Bono's rallying cry. "Shopping is not a
solution. Buy less. Give more," is the message at buylesscrap.org,
which encourages people to give directly to the Global Fund.
"The Red campaign proposes consumption as the cure to the world's
evils," said Ben Davis, creative director at Word Pictures Ideas,
co-creator of the site. "Can't we just focus on the real solution
-- giving money?"
Trent Stamp, president of Charity Navigator, which rates the
spending practices of 5,000 nonprofits, said he's concerned about
the campaign's impact on the next generation. "The Red campaign can
be a good start or it can be a colossal waste of money, and it all
depends on whether this edgy, innovative campaign inspires young
people to be better citizens or just gives them an excuse to feel
good about themselves while they buy an overpriced item they don't
really need."
Fears of nonprofits
Mark Rosenman, a longtime activist in the nonprofit sector and a
public-service professor at the Union Institute & University in
Cincinnati, said the disparity between the marketing outlay and the
money raised by Red is illustrative of some of the biggest fears of
nonprofits in the U.S.
"There is a broadening concern that business is taking on the
patina of philanthropy and crowding out philanthropic activity and
even substituting for it," he said. "It benefits the for-profit
partners much more than the charitable causes."