Companies Find It's Not Easy Marketing Green

- Wendy Melillo and Steve Miller

Spiraling fuel prices and global warming fears have increasingly put environmental issues on the front page and in advertising efforts. But as more companies adopt these campaigns, consumers are growing increasingly confused over what it means to be "green," making it harder to create effective environmental marketing efforts, according to a recently released study by Landor Associates, New York.

"Is it about the environment, organic food or 'good-for-you' living? . . . It could be about all of those things," said Allen Adamson, managing director at Landor. "It is easy to say you are green, but consumers are skeptical. And because everyone wants to jump on the green bandwagon, all of a sudden it is noisy in this space, and it is hard to break through."

The study found that 64% of those who responded couldn't name a "green" brand; even 51% of those who considered themselves to be environmentally conscious were unable to name one. "As much as the term has been tossed around, many people . . . are unclear as to what it means," the study reported. "Eco-friendly, fuel efficient, biodegradable, natural and organic are used in different categories to emphasize green, but can confuse and cloud the mind of consumers."

The noise in the green marketing space has grown louder in recent months. Dow Chemical's "Human Element" campaign, via FCB, Chicago, addresses environmental concerns in the "global community." Shell Oil launched a $30 million marketing campaign in June, via JWT, Houston, that trumpets its higher quality fuel, which emits less pollution. General Electric continues to build on its "Ecomagination" effort, which it launched in 2005 with work done by BBDO, New York, "to address challenges such as the need for cleaner, more efficient sources of energy, reduced emissions and abundant sources of clean water."

"These industries, especially the auto and the oil industries, don't want to be caught not talking about these issues, because they are a key part of them," said John Stauber, co-founder of the Center for Media & Democracy, Madison, Wis., which studies the claims of advertising and marketing for truthfulness.

Branding experts consider green marketing to be especially tricky because the public seems poised to accuse disingenuous companies of "greenwashing." Ford, for example, has been tagged with that claim by a number of green activist groups, who decry the automaker's low overall mpg as it embarks on ad campaigns that promote energy independence and use of alternative fuels. Ford didn't help the matter when it recently rescinded a promise to produce 250,000 hybrids a year by 2010. In June, Ford retracted the vow in favor of building vehicles that use alternative fuel and flexible-fuel vehicles, which can use either an ethanol-based fuel or regular gas.

Some advertisers are seeking new ways to prove their green credentials. In June, for example, a public/private partnership entitled EcoZone was launched, created by EcoMedia, a New York-based media company. Such companies as DaimlerChrysler, Alcoa and AbTech, a green technology firm, pay up to $5,000 per sign to put their logos on billboards carrying environmental messages that will be posted around Washington. The nation's capital will be the first of about 15 cities to host the national public education effort, which will use a portion of the money raised from corporate sponsorships to address environmental clean-up problems at no additional cost to the taxpayer. Company logos are also placed on paid spots that will air in the specific city markets.

With EcoZone, DaimlerChrysler can show how its hybrid electric bus could be a good environmental alternative for cities seeking to update their public transportation fleets. "EcoZone is an innovative approach that allows us to continue to converse with our customers about our desire to be good neighbors, save energy and work to improve the environment," said John Bozzella, vp-external affairs and public policy at DaimlerChrysler.

Compare that with British Petroleum. BP is credited with being one of the first companies to make a significant grab for the green title with its 2003 "Beyond Petroleum" campaign, via Ogilvy & Mather, New York, emphasizing wind power and solar energy. Landor's Adamson, who helped BP develop its branding effort, said it will still take another five years to determine if the company will be successful in getting the public to think of it as more than just an oil company. "You can be an energy company and call yourself green," Adamson said. "It is harder to be an oil company and totally do it. [But] BP has a holistic approach by aligning the business plans with the marketing promise. They also have the first-mover advantage."

Others are less sanguine. "I respect BP a lot, but I am concerned that the amount of ads they have done around green initiatives is going to backfire," said Joel Makower, a senior consultant at GreenOrder, New York, a marketing strategy firm specializing in eco-themes. "It's not that they are not committed, but when you look at their books, so much of their revenue comes from petroleum."

GreenOrder works with numerous companies to hone their green marketing. General Motors' "Live green, go yellow," for example, launched earlier this year proclaiming the company's considerable sales of flexible-fuel vehicles and its support of ethanol-based gasoline. Still, no matter how genuinely concerned these companies might be, it's unlikely they'd be pursuing this angle if there weren't profit to be had. "Green is green as in the color of money," said Judy Hu, global executive director of advertising and branding at General Electric. "It is about a business opportunity, and we believe we can increase our revenue behind these Ecomagination products and services." —with Gregory Solman