International Cause Marketing Benefits From Weak U.S. Dollar

A lot of American businesses which export or otherwise rely on selling to buyers outside the U.S. have been happy of late. The weak dollar (I will dispense on the reasoning behind it or this may turn into a economic policy blog!) has resulted in our prices looking mighty attractive to global brethren.

No where have I seen this trend more apparent than via our cause marketing campaigns on eBay Giving Works. Friday night, we just had the end of a very exciting cause marketing campaign with Vanity Fair for a special Madonna package of a signed globe used in her May 2008 cover shoot for the magazine, 2 tickets to a private venue show in NYC, Virgin America airfare, luxury hotel, and dinner. When the dust settled, the winning bid was $24,200, with 22 different bidders producing 82 bids.

100% of the funds went to Madonna's requested charity, Raising Malawi, a special organization that is directly improving the lives of children in impoverished conditions. As great as the auction package and cause, we thought the cost of shipping the globe would severely limit the bidding to a US only audience, as free shipping of the 200 pound boxed globe was only included in this country. We estimated international shipping in the $3000+ range.

Bidding had been creeping up all week, with strong interest worldwide. Still, with 3 hours before the auction close on Friday, bidding was at $16,000. Not a bad sum at all, but we all hoped for some competition at the end.

What happened I believe was this auction looking financially attractive to our international bidders. A bidder from Monaco started duking it out with a bidder from Kuwait. These were heavily prequalified/screened bidders too. They were huge Madonna fans and loved the ideal of Vanity Fair listing this package to benefit a cause near and dear to her heart. Did the weak dollar play a role in this as well as other recent auctions which Auction Cause has managed on eBay? "You betcha" as Margie might say as she investigates from Fargo.

So, I was quite surprised when some new money showed up in the last minute to steal the thunder. A successful California businessman pounced and strutted off victorious, much to the chagrin of his competition. Though we cannot yet identify him publicly yet, he was thrilled to have come out on top, and considered himself fortunate to have weathered the bid raising from our international bidders.

What made this so successful as a cause marketing campaign? All the traditional elements that create cause marketing sizzle:

• Cause that pulls at the heart strings
• Blue chip brand
• A list celebrity
• "Money can't buy" experience package
• Top level PR)

Yet, all these crucial elements did not override the economic reality - "U.S. products are cheap at the moment and create some "fun money" opportunities for our friends around the world.

Other similar auction results from our campaigns:

• Kristin Davis Sex In The City Premiere - Japanese winner
• Dinner with Shakira - Canadian winner
• Dinner with Gene Simmons - British Winner

This trend should continue throughout 2008, with savvy U.S. based companies and charities marketing & tailoring their eBay offerings to the global fan base like never before.

Obvservations on Cause Marketing Auctions on eBay

I admit I am not a natural blogger. I run Auction Cause, www.auctioncause.com, and my time is spent managing a large number of high profile events on the platform. Still, I love reading others' blogs, and do believe I have some personal insights which might be useful and at least interesting, so after not posting much here, let me get back on track.

First, cause marketing has met social networking with a great new blog site called "What Gives?!", www.whatgives.com. I know a few of the people who contribute content there, and they really connect pop culture, causes, and what makes us all tick. Check it out, it really is a step above some of the general rants or just boring content that is out there.

So, back to my subject line here, finally! Recently charities and brands have come to me with some great auction experiences, but they were lacking some "sizzle" to put them over the top. One charity had a meet and greet with a fairly classic and popular musician, but nothing else. In speaking with them, they casually mentioned they had some relationships with a hotel chain and restaurant group. They were quickly were able to make a compelling ask and get 2 nights hotel and a great dinner donated to the auction experience. With some great brand exposure and thousands of page views, it was a big win for all, especially the cause, as the raised thousands extra from their corporate relationships.

More observations on cause marketing - some brands run auctions that over the top promotional about themselves with little authenticity connecting to the cause the auction will benefit. Does this seem perhaps like the business really does not care about the cause and is only interested in how much exposure they can generate? It sometimes does to me.

Like cause marketing in stores or at events, consumers are sophisticated and even a but jaded, but they want to see the company truly care about who and what they are fundraising for. It is like the messaging on a product's retail packaging where it says something like "50 cents for every box sold will benefit charity X", and then in the small print it says "up to Y number of dollars". Even if that number is met in the first month of the campaign, they can still continue to advertise the same way. If you as a consumer knew that zero of your purchase was going to charity X, would you still make that purchase if that charity was important to you? Perhaps not!

So, speaking of authentic cause marketing campaigns, I am very excited to announce the launch of a very cool Vanity Fair auction tied in with their May 2008 issue. Madonna is on the cover in front of a huge globe. It is a great cover shot, and that globe is up for auction on eBay Giving Works right now. 100% of the money raised will benefit "Raising Malawi", a charity dedicated to alleviating the extreme poverty and hardship endured by Malawi's one million orphans. More on them here.

Vanity fair of course is getting great exposure, with the auction featured on Access Hollywood, and on Pop Tarts, the Fox News celebrity happenings column penned by Hollie Mckay, it is drawing great traffic to the auction. The authenticity comes from Vanity Fair asking Madonna to pick her favorite charity to donate the proceeds to. Additionally, Madonna donated access to her small, yet to be announced concert taking place later this month in New York. With hotel, air, and restaurants coming on board as well to make this package even more special, someone is going to win a once in a lifetime auction. On the other side, Raising Malawi is promoting the auction to their supporters on their website. Seems like common sense to me, but I am surprised how often a charity does not prominently promote an eBay charity auction from which they stand to benefit.

As always, drop me an email about anything cause marketing or eBay related. I can be reached at eric [at] auctioncause [dotcom].