(That is the second of three posts coping with the usage of environmental claims in advertising communications. In my first post, I described the present political backlash in opposition to some ESG-related insurance policies, however I additionally famous that public assist for shielding the surroundings stays widespread, in response to latest analysis. This put up discusses why environmental claims in advertising have not labored in addition to some analysis findings recommend they need to.)
The present political backlash in opposition to ESG-inspired insurance policies and applications is prompting many advertising leaders to query the knowledge of together with environmental claims of their advertising campaigns.
Past the political danger, entrepreneurs should additionally decide whether or not the usage of environmental messaging will enhance advertising efficiency and drive income progress. On this problem, the accessible proof paints a combined image.
Sustainability Advertising and marketing Is Working . . .
The Sustainable Market Share Index(TM)[1] (the “CSB Index”) produced by the NYU Stern Center for Sustainable Business offers compelling proof that advertising merchandise as sustainable ends in substantial market share progress.
The CSB Index is predicated on gross sales knowledge from Circana for 36 classes of shopper packaged items (CPG) merchandise (excluding alcohol and tobacco). Collectively, these 36 product classes accounted for roughly 40% of the entire US CPG market in gross sales from 2013 – 2024.
The 2024 version of the CSB Index discovered that:
- Merchandise marketed as sustainable held a 23.8% market share of the entire US CPG market, up 2.6 share factors from 2023, and the market share of sustainable merchandise has elevated 9.2 share factors since 2013.
- Merchandise marketed as sustainable achieved a 5-year compound annual progress charge of 12.4% vs. a CAGR of 6.8% for the general US CPG market.
- Merchandise marketed as sustainable had been chargeable for 41% of the expansion of the entire US CPG marketplace for the interval of 2013 – 2024.
Whereas the CSB Index solely tracks knowledge for chosen CPG classes, it nonetheless means that utilizing environmental/sustainability claims in advertising can drive vital market share progress.
However a Substantial “Say-Do” Hole Exists
David Ogilvy, the legendary promoting government and founding father of Ogilvy & Mather, as soon as stated: “The difficulty with market analysis is that folks do not assume how they really feel, they do not say what they assume, they usually do not do what they are saying.”
As I famous earlier, latest surveys have persistently proven that public assist for actions geared toward defending the surroundings and enhancing sustainability is widespread, and related findings have been showing in surveys for a lot of the previous twenty years.
Nonetheless, quite a few surveys have additionally revealed a considerable say-do hole between individuals’s said views and attitudes about sustainability and their precise shopping for behaviors. For instance:
- In a 2024 survey of greater than 3,000 US and Canadian adults performed by Ipsos on behalf of Public Inc., 76% of the respondents described themselves as “aware shoppers,” however solely 38% of the respondents’ precise purchases had been made with consideration for social, moral, or environmental elements.
- In a 2025 survey of greater than 5,000 shoppers in Australia, New Zealand, France, Germany, the UK, and the US by Blue Yonder, 78% of the respondents stated sustainability issues are considerably or crucial when purchasing, however solely 29% had switched their model loyalty to corporations they perceived as exhibiting extra sustainable practices.
Causes of the Say-Do Hole
The sustainability say-do hole might be attributed to a number of elements.
Social Desirability Bias
This bias refers back to the tendency of survey respondents to reply survey questions within the method they consider might be seen favorably by others relatively than the best way they really assume or really feel.
So, when a survey asks contributors whether or not sustainability is vital to them when making buy choices, some respondents are prone to understand that “sure” is the “proper” reply.
Failing to Seize Relative Significance
Many surveys additionally fail to seize the significance of sustainability in relation to different elements that affect buy choices. For instance, a survey respondent might in truth say sustainability issues are vital when making a purchase order choice, when the fact is that sustainability is much less vital to the respondent than elements comparable to product high quality, value, and comfort.
The McKinsey survey requested contributors to charge the significance they ascribe to seven elements when making buy choices. As the next desk exhibits, 72% of the respondents stated notion of high quality is extraordinarily or crucial, and 70% stated the identical for worth. Nonetheless, solely 33% of the respondents rated environmental impression as extraordinarily or very vital.
Effectiveness of Environmental Messaging
The scale of the sustainability say-do hole can also be affected by how successfully entrepreneurs talk the environmental advantages of their services or products. The persistence of a big sustainability say-do hole signifies that entrepreneurs have to make their environmental claims and messaging extra persuasive.
In my subsequent put up, I am going to describe the 4 attributes that make sustainability claims extra compelling for potential consumers. [1] – Sustainable Market Share Index is a trademark of the NYU Stern Middle for Sustainable Enterprise
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