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How Great A Risk Would You Take?

June 8, 2012

As a small business owner, the CEO of a Fortune 500 company, or a medical professional in charge of multiple offices, how great of a marketing risk are you willing to take? Think about that question for a moment. Could you risk losing income to stand by a message that you believe in? As a prominent Scottsdale advertising firm, we are often approached with this question by clients. How far would you go?


The reason that we bring up this question today is in the wake of Disney’s controversial announcement to disallow unhealthy food advertising to kids on the TV channels, radio station and website. Since many of their programs both on radio and TV cater directly to children, many food companies that produce ‘unhealthy’ products will no longer be allowed to buy advertising space. So, when we ask ‘how great of a risk are you willing to take to stand by a core value,’ we literally mean would you risk millions to stand by your message?


Walt Disney Co. vs Unhealthy Foods

According to USA Today, by 2012 all food and beverage products that are advertised, promoted or sponsored on the Disney Channel, Disney XD, Disney Junior, Radio Disney, and Saturday morning programming for kids on ABC-owned stations will have to meet the company’s nutrition criteria for limiting calories and reducing started fat, sodium and sugar.


Will Disney Loss Advertising Revenue?

In fact, quite the opposite. While many would assume taking a leap like this would limit who can advertise on their TV and radio stations, gouging their advertising revenue. When, in fact, they are looking to make much more in 2012 than they did in 2011.


According to the Wall Street Journal, ABC and Disney XD made about $7.2 million in 2011 from advertising that would be subject to review under Disney’s new healthy guidelines. Disney’s estimated revenue for 2012 is at $7.7 billion.


Robert Iger, Chief Executive at Disney, told the Wall Street Journal that many of the food companies with ‘unhealthy’ products will simply advertise alternative products or will change some of their products to comply with new guidelines.


Would You Take That Risk?

This marketing move by Disney has been seen as both extremely controversial and inspiring, depending on whom you ask. While the risk was supremely calculated on every single level, it is still a great risk for the company. What if food companies choose to drop all of their advertising? What if ‘guests’ at the Disney resorts don’t approve of the new healthy menu items? How great of a risk is Disney really taking, and would you take a similar risk with your brand?


These are the kinds of questions that we get all of the time here at Quaintise. Maintaining your brand message while taking risks and standing by your core foundation can be tough. Let us guide you through the process.