The Coca-Cola Company has promised to nearly double the cost of advertising on media owned by minorities. This is the latest in a wave of big companies responding to pressure on how to allocate such dollars and a $ 10 billion proceeding.
Atlanta-based Coca-Cola North America Said In June, advertising spending on these companies will be five times higher than in 2020, with 8% of the total annual media budget owned by blacks, Hispanics, Asian Americans, and Pacific Islanders by 2024. It will be assigned to the media you want to.
Other big companies have made similar promises in the last few weeks. 20 companies including Uber, General Mills, Adidas, Tyson Foods and Target GroupM Media Inclusion InitiativeIn June, we promised to spend more than 2% of our total annual media budget on black-owned media.
in addition, McDonald’s As announced in May, national advertising spending on black-owned media increased by 2% to 5% between 2021 and 2024, with blacks, Hispanics, Asian Americans, Pacific Islanders, and LGTBQ. , Up to 10% more than that in women-owned media. stretch.
And a month ago Announced by General Motors Five action plans to change how you deal with “various ownership and diverse target media”. This includes advertising spending up to 2% by 2021, up to 4% by 2024, and up to 8%. 2025.
Keonte Coleman, an assistant professor of journalism and strategic media at Middle Tennessee State University, told Zenger:
“Racial calculations performed across the country have given Fortune 500 companies a high priority on social justice issues. For black-owned companies, these companies are systematized through a policy of social responsibility. There is a consumer base that pays attention to how to deal with inequality. “
The Coca-Cola Co. Daphne Dickerson, a leader in brand and business communications, told Zenger that he is currently in action. Within our media mix, our consumer targets continue to evolve and invest in both minority-owned and minority-targeted media to make our spending effective and efficient. is needed. “
Sarah Bobas, GroupM’s Head of North American Marketing Communications, told Zenger a 2 plus percent goal, “an important and achievable goal for clients based on available inventory” from private sectors. Like Dickerson, Bobas refused to quantify how much it was in dollars because it reveals confidential budget information.
Promises are, in some cases, after publicly calling for corporate practices. In April, music tycoon Sean Combs wrote: “If you love us, pay us: A letter from Sean Combs to an American company” It especially criticized General Motors for spending an estimated $ 10 million out of its $ 3 billion advertising budget on black-owned media.
Combs’ essay said GM spends less than 0.5% of “billions of ads” on black media, all pages in March in Detroit Free Press and other newspapers by seven leaders of black media companies The level GM controversy that came after advertising. 7 executives — Byron Allen of Allen Media Group LLC, Junior Bridgeman of Ebony Media, Todd F of Urban Edge Networks. Brown, BIG3 and Cube Vision’s Ice Cube, Black Enterprise’s Earl “Butch” Graves, Central City Productions’ Don Jackson, Nu Vision Media’s Roland Martin — Distinguish between black-owned and black-targeted media. “The minority includes white women, and large companies like General Motors can hide and promote their records without continuing to do business with black-owned media companies.”
The ad demanded a zoom meeting with GM Chairman and CEO Mary Barra instead of Chief Marketing Officer Deborah Wall for her previous tenure at McDonald’s.
The fast-food giant was criticized in May for advertising spending with black-owned media in another newspaper ad calling for a meeting with president and CEO Chris Kempczinsky. On the same day, an ad was placed in the Chicago Tribune and Wall Street Journal, Entertainment Studios and Weathergroup LLC, a division of the Allen Media Group, and a $ 10 billion proceeding was filed against McDonald’s.
Proceedings, Submit to Los AngelesCondemns racism in contracts and states that the company spends less than $ 5 million on black-owned media out of its $ 1.6 billion TV advertising budget. The proceedings allege that McDonald’s puts the networks and platforms of Allenmedia groups such as The Weather Channel, Comedy.TV and Cars.TV outside the “general market” advertising base. Instead, according to the proceedings, Allen Media’s channels and platforms have been pushed to a much smaller hierarchy reserved for black-targeted viewers, but many of those services are for the general public. And is competing with white-owned media.
“This is about economically including African-American-owned businesses in the U.S. economy. McDonald’s robs African-American consumers of billions of dollars and returns almost nothing. The biggest trade deficit is the trade deficit between white Americans and black Americans, and McDonald is guilty of perpetuating this gap. Economic exclusion must stop immediately. ” Allen said in a statement..
The company denies being discriminatory when it comes to such spending.
“McDonald’s does not tolerate discrimination in any part of our business, and these unfounded claims contradict our values and are believed by our actions,” the company told Zenger. Told. “We continue to work to drive the growth of diversely owned media, so we are working with franchisees to increase spending with diversely owned partners from 4% to 10% and to be black owned. Increased media spending from 2%. From% to 5% of total national advertising over the next four years. To counter this lawsuit, we keep the brand at the center of culture, customers, crew, We will continue to work with a variety of owned partners to build deeper relationships with our employees. “
“The fact that prominent black media mogul like Byron Allen has expressed concern has made fortune 500 companies a black-owned business and cause through public statements and financial contributions,” said Coleman of Middle Tennessee State University. We are putting pressure on them to support them. “
(Edited by Matthew B. Hall and Judith Isacoff)
post Coca-Cola is the latest leader in black-owned media that promises more advertising. First appeared Zenger News..
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