“Going green” is not just good for the environment, but also for successful advertising. This is according to a new report, released last week by the Worldwatch Institute, which says that marketers have put more resources into “green” advertising based on claims of the improved environmental impact of their products, in order to capitalise on growing public interest in sustainability, and attract more eco-savvy customers.
Issued by the Worldwatch Institute’s Vital Signs Online subscription-based tool, the report found that, in the US, the number of products marketed with environmental claims grew from around 100 in 2004 to more than 1,500 in 2009. Yet the report also discovered that, thanks to the recession, major brands have slashed the money spent on advertising, which has affected the focus on green marketing.
Nonetheless, last year the US Federal Trade Commission was forced to update its Green Guides, as there was an increase in false claims by advertisers about a product’s sustainability. Thanks to the Guides for the Use of Environmental Marketing Claims, or Green Guides, marketers will now know when environmental marketing claims are considered unfair or deceptive and so, under the Federal Trade Commission Act, the agency will now be allowed to take enforcement action against deceptive environmental marketing.
In 2013 alone, many major retailers have already fallen prey to the new environmental marketing regulations. The FTC charged big companies such as Amazon, Leon Max, Macy’s and Sears, and Sears’ Kmart subsidiaries, with misleading customers, and the retailers all agreed to settle by paying $1.26 million in penalties. According to the FTC, the companies were guilty of deceiving customers by labelling rayon fabrics as made from bamboo fibre.
The Worldwatch Institute report found that global expenditures on all advertising grew 3.3 percent in 2012 to $497.3 billion, with the US continuing to have the largest share of ad spending – nearly a third of the global total. However, Asia Pacific, excluding Japan, had the fastest growth with ad spending, increasing 7.9%. With this in mind, the report said that the US’ new regulatory controls on false advertising are a positive step, but it also added that, in order to achieve true sustainability, less material consumption will be required and, in turn, so will stronger overall limits on advertising.
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