The Trend Toward Purpose-Based Marketing

Just a couple of years ago, the conversation around brands’ involvement in social issues was almost exclusively about activism — brands publicly taking a stand on controversial or potentially polarizing topics. Brand activism saw brands espousing positions on environmental and social issues like food waste, racism, and LGBTQ+ rights.

But more recently, as the public discourse has grown more polarized and consumers have gotten increasingly savvy at spotting greenwashing and other forms of inauthentic activism, marketers have begun to shift focus away from activism for external causes and more toward the brand’s underlying purpose, says a recent Ad Age article. “Advertising agencies are repositioning and broadening their services to accommodate the change,” say the article’s authors. “Some are pivoting away from social impact, concentrating instead on how their company provides value to consumers.”

Here’s more about what this shift means for brands, and what brands can expect from working with agencies that specialize in purpose marketing.

What Is Purpose Marketing?

Purpose-driven marketing is a strategy that centers a brand’s external communications around a social cause that aligns with the brand’s core values. Purpose marketing goes beyond traditional marketing by emphasizing the brand’s “why” — its reason for existence beyond just making a profit. The goal of this strategy, says the Ad Council, is to “develop a deeper rapport with their consumer base by creating authentic connections based on shared values.”

Two well-known brands exemplify purpose marketing: Toms Shoes, which gives a third of its profits to charity; and Patagonia, the outdoor clothing company known for its strong environmental commitment and activism. In practice, purpose marketing can address any number of causes, including environmental sustainability; social issues like poverty, inequality, and access to education; and business ethics issues like fair labor, ethical sourcing, and operational transparency.

Regardless of cause, actions should go beyond mere messaging and actively contribute to positive social or environmental change, or benefits provided to consumers. “Some [marketers] are pivoting away from social impact, concentrating instead on how their company provides value to consumers,” says Ad Age.

“In an ocean of sameness, people look for what stands out,” says a recent LinkedIn article. “They are no longer only concerned about what a product does; they want to know what a brand stands for.”

Why Invest in Purpose-Driven Marketing?

Until the early 2020s, brand activism and purpose-driven marketing were seen as “a form of community service rather than efforts that would bolster financial performance,” notes the Ad Council. This began to change in 2019, when Business Roundtable, a group of nearly 200 CEOs of the largest U.S. companies, redefined a corporation’s principal purpose, declaring that more than merely maximizing shareholder return, “organizations should deliver value to their customers, invest in employees, deal fairly with suppliers, and support the communities in which they operate.” Prior to 2020, consumers were already spending in line with their values. The early 2020s COVID-19 pandemic and social justice reckoning accelerated this trend.

Consumers are increasingly drawn to brands that align with their values. A 2020 study showed that 94 percent of consumers said they valued companies with a strong, clearly defined purpose, and that they’re willing to support that purpose through brand loyalty, just over a third of consumers believed companies were reaching their purpose-driven potential.

And as Gen Z — born between 1997 and 2012 — matures and gains buying power, their “cause-first” orientation toward brands will carry the purpose marketing trend well into the future. “This shrewd, digitally native group is passionate about transparency, social care, mental health, climate change, and so forth,” says the Ad Council article. “Gen Z stands equipped with an arsenal of technological resources … that position them as nimble and self-educated agents of change.”

All of this means that purpose-driven marketing is not only good for business, it’s also becoming essential. “Today, a lack of clearly conveyed purpose can negatively impact the bottom line and longevity of your organization,” notes the Ad Council.

What Does a Purpose Marketing Agency Do?

Purpose-based marketing is about more than just selling products or services. It’s about building a strong brand identity that resonates with consumers on an emotional level. This means that authenticity is key. “Purpose-driven marketing can’t be cosmetic. It must be reflected in every aspect of a brand’s business model and culture,” says the Ad Council.

What does this mean for a brand that hasn’t focused its marketing around purpose so far — is it possible to develop a purpose-driven marketing strategy that will connect with consumers? Yes, say branding and marketing experts. “Purpose-driven marketing, such as sustainability initiatives, is challenging to execute and may initially seem to counter your core business processes,” says the LinkedIn article. The expertise of a purpose agency can help a brand cut through the noise to identify and communicate around its higher purpose — the brand’s reason for being beyond merely making a profit. Defining the brand’s purpose, identifying values shared by the target audience, communicating around purpose, and measuring impact are key aspects of the purpose agency’s role.

Defining Purpose

Defining the brand’s core purpose is the first step. This purpose might involve addressing social issues, creating an environmentally friendly alternative to other brands’ products, offering a workplace that follows ethical business practices, or meeting an unmet consumer need.

Working with the brand’s founders and leadership, the purpose agency will help the brand articulate its purpose and values.

Identifying Common Values

The brand’s reason for being isn’t the only component of its purpose. “Understanding your target audience and their values is crucial when implementing purpose-driven marketing strategies,” says the LinkedIn article. One role of the purpose agency can be doing the research to uncover consumers’ values and the issues that interest or affect them, then identifying “points of intersection” between the brand’s values and those of the target audience. These points of intersection help the agency and the brand create messages that resonate with consumers.

Communicating About Purpose

Purpose agencies have deep expertise in creating marketing campaigns that align with the brand’s purpose and resonate with socially conscious consumers. They work with brands to communicate via not only messaging but also actions — the ways a brand fulfills its mission and purpose through action and operations. This might include forming partnerships with nonprofits and like-minded brands, launching social impact initiatives, seeking news coverage, or conducting marketing campaigns across traditional and digital media.

Measuring Impact

Today’s consumers aren’t impressed by lofty marketing claims, and they are expert at identifying greenwashing and other inauthentic brand activism. They expect to see results, not promises. Tracking and measuring the impact of the brand’s actions and campaigns is how the brand and its agency can back up its purpose statements with data, anecdote, and storytelling. In essence, purpose agencies help brands become forces for good by aligning their business goals with meaningful, tangible change that differentiates the brand from its competition and builds trust with consumers.

Promobile Marketing is a dynamic experiential marketing agency based in New York City. For over a decade, Promobile Marketing has collaborated with a range of brands—from budding startups to major CPG brands—on immersive marketing campaigns. Get in touch to discuss your next project.