Sustainability has steadily moved forward as a driver of commercial value for brands, with consumers making more purpose-led buying decisions. MAGNA, the media intelligence unit in IPG Mediabrands, and Sharethrough, part of the global, independent ad tech platform Equativ, collaborated to explore the phenomenon in Canada and the United States (U.S.) and to reveal how advertisers could capitalize on this.
The new MAGNA Media Trials research study called “Sustainability Sells: How Brands Can Communicate on Sustainability and Drive Profit” surveyed more than 1,200 people across the markets to quantify the impact of sustainability on purchase decisions. The research study was designed alongside thought leaders from the Rodale Institute, a non-profit growing the regenerative organic agriculture movement. Through testing 3,600+ scenarios and 19 product features, the study found that 63% of people would pay more money for sustainable goods. And 1-in-4 shoppers could be classified as “eco spenders” -- people willing to pay a premium regardless of the product.
“As marketers face growing regulatory demands and rising consumer expectations, sustainability is no longer a niche or optional initiative. It’s a business imperative,” said Martin Bryan, Global Chief Sustainability Officer, IPG Mediabrands. “Eco-spenders represent a rapidly growing, values-driven audience willing to reward brands that deliver on environmental promises.”
What Sells?
- In the personal care segment, refillable packaging (24%), responsibly sourced materials (23%), and use of recyclable packaging (20%) were leading features brands could deploy to tap into eco-spenders’ wallets.
- For clothing and apparel, 25% of survey respondents would pay more for responsibly sourced items, while 22% would do so for materials manufactured from certified regenerative organic agricultural practices.
- In general, brands that offer sustainable products appeal to multi-generational audiences, with Millennials (29%) and Gen Z and Gen X (25%) choosing to pay more.
While many brands use product packaging that includes seals identifying their sustainable features, e.g., reef-safe, certified organic, or biodegradable, most people don’t understand them.
Key Finding: On average 92% of those surveyed said it was important for brands to communicate on sustainability, and this was true across verticals from clothing to tech.
“What was revealed in the report is that consumers are actively asking brands to use advertising to educate them about the sustainable features of their products -- a rare and remarkable opportunity,” commented Frank Maguire, Senior Vice President, Product Marketing and Sustainability, Equativ. “It’s not often that we hear consumers inviting brands to advertise to them, but this is a clear call for transparency and engagement that brands should embrace.”
Kara Manatt, Executive Vice President, Intelligence Solutions at MAGNA added, “This is where advertising can work harder for a brand, going beyond awareness to deeper understanding, and ultimately leading to profit. We found that 80% of Millennials and 71% of Gen Z consumers preferred ads as their go-to channel for learning about a brand’s sustainability efforts, and for Millennials this channel even outperformed social media and influencers.”
3-Steps to Act Now:
- Partner with sustainability leaders to align on messaging and unlock further growth.
- Explore private-NGO partnerships aimed at public awareness on sustainability.
- Tap into advertising, including on-package, for consumer education on eco seals.
To learn more and read the full study, please click here to visit MAGNA Media Trials website.
Posted at MediaVillage through the Thought Leadership self-publishing platform.
Click the social buttons to share this story with colleagues and friends.
The opinions expressed here are the author's views and do not necessarily represent the views of MediaVillage.org/MyersBizNet.