These days, brands often get caught up in a social media whirlwind whenever they might stumble. Whatever fallout there is can be magnified exponentially thanks to the reach of social platforms like Twitter, Facebook and Instagram.
When a “brand fail” becomes a topic of conversation in the media echo chamber, it can seem almost as though the wheels are coming off completely. But is that really the case?
Consider the past few weeks, during which time two airlines (United and American) and one consumer product (Pepsi) have come under fire in the social media sphere (and in other media as well) for alleged bad behavior.
In the case of United and American, it’s about the manhandling of air travelers and whether air carriers are contributing to the stress – and the potential dangers – of flying.
In the case of Pepsi, it’s about airing an allegedly controversial ad featuring Kendall Jenner at a nondescript urban protest, and whether the ad trivializes the virtues of protest movements in cities and on college campuses.
What exactly have we seen in these cases? There’s been the predictable flurry of activity on social media, communicating strong opinions and even outrage.
United Airlines was mentioned nearly 3 million times on Twitter, Facebook and Instagram just on April 10th and 11th. Reaction on social media over the Pepsi ad was similarly damning, if not at the same level of activity.
And now the outrage has started for American Airlines over the “strollergate” incident this past weekend.
But when you consider what the purpose of a brand actually is – to sell products and services to customers – what’s really happening to brand reputation?
A good proxy is the share price of the brands in question. United Airlines’ share price took a major hit the week the “draggergate” news and cellphone videos were broadcast, but it’s been climbing back ever since. Today, United’s share price looks nearly the same as before the passenger incident came to light.
In the case of Pepsi, company shares are up more than 7% so far in 2017, making it a notably robust performer in the market. Moreover, a recent Morning Consult poll found that over 50% of the survey respondents had a more favorable opinion of the Pepsi brand as a result of the Kendall Jenner commercial.
That is correct: The Pepsi commercial was viewed positively by far more people than the ones who complained (loudly) about it on social media.
What these developments show is that while a PR crisis isn’t a good thing for a brand’s reputation, social fervor doesn’t necessarily equate with brand desertion or other negative changes in consumer behavior.
Instead, it seems that the kind of “brand fails” causing the most lasting damage are ones that strike at the heart of consumers’ own individual self-interest.
Chipotle is a good example, wherein the fundamental fear of getting sick from eating Chipotle’s food has kept many people away from the chain restaurant’s stores for more than a year now.
One can certainly understand how fears about being dragged off of airplanes might influence a decision to select some other air carrier besides United – although it’s equally easy to understand how price-shopping in an elastic market like air travel could actually result in more people flying United rather than less, if the airline adjusts its fares to be more the more economical choice.
My sense is, that’s happening already.
And in the case of Pepsi, the Jenner ad is the biggest nothing-burger to come down the pike in a good while. The outrage squad is likely made up of people who didn’t drink Pepsi products to begin with.
Still, as an open forum, social media is important for brands to embrace to speak directly to customers, as well as to learn more about what consumers want and need through their social likes, dislikes and desires.
But the notion of #BrandFails? As often as not, it’s #MuchAdoAboutNothing.