Product Red is sort of a failure (depends how you look at it)

For all the advertising dollars that go into marketing those Product Red items, the overall money raised from the joint business-consumer operation has only accumulated to a comparably small amount. While the money that’s been donated to The Global Fund has been considerable, some critics are saying that more can be done if people would just donate to The Global Fund (or other similar organizations) directly.

From The New York Times:

“I hate begging for money,” Mr. Shriver said. “In most cases when you go and ask for a corporate donation, they’ll cut you a check and that’s it. We wanted something that was more sustainable.”

But that argument has not impressed some activists and bloggers, who say the primary beneficiaries of cause-marketing campaigns are businesses.

Ben Davis of San Francisco, who created a Red parody online that says “Buy(Less),” is encouraging consumers to give more directly to nonprofits that support AIDS programs in Africa.

The counter-argument, of course, is that Product Red is helping people who otherwise would not make any contribution at all to easily donate by allowing them to mix it in with their “regular shopping” habits. In that light, I guess it’s not as bad as it sounds.

In an interview in Rwanda, Tamsin Smith, president of Red, said such criticism missed the point. “We’re not encouraging people to buy more, but if they’re going to buy a pair of Armani sunglasses, we’re trying to get a cut of that for a good cause,” she said.

Ms. Smith, who formerly led Gap’s government affairs department, also takes issue with those who criticize Red advertising.

“Red is not a charity; it’s a business,” she said.

This New York Times graphic breaks down the contribution percentages of each company involved in Product Red. It’s hard not to feel a bit disappointed when you realize that at the end of the day, you’re still helping a major company make lots more money than they are donating.

To end on a good note, at least the $22 million that’s so far been raised is being put to good use in fighting HIV and AIDS.