Marketing on its Back Foot

Came across two interesting stories this week about marketing.  One is humorously ironic, while the other hits a sensitive public nerve regarding online privacy.

Abercrombie & Fitch

On Wednesday, Abercrombie & Fitch, the Ohio-based clothing retailer that operates 1,073 stores worldwide reported an increase in quarterly net sales of 23%, accompanied by an increase in profits of 64%.  Who says the economy is in the doldrums?  

Investors must have breathed a sigh of relief to learn this, however, as only days before A&F issued a press release stating that it had offered Michael “The Situation” Sorrentino, a character in MTV’s The Jersey Shore, compensation to stop wearing A&F products.

The press release stated:

"We are deeply concerned that Mr. Sorrentino's association with our brand could cause significant damage to our image.  We understand that the show is for entertainment purposes, but believe this association is contrary to the aspirational nature of our brand, and may be distressing to many of our fans. We have therefore offered a substantial payment to Michael 'The Situation' Sorrentino and the producers of MTV's The Jersey Shore to have the character wear an alternate brand.  We have also extended this offer to other members of the cast, and are urgently waiting a response."

In a world of big ticket celebrity endorsements, paid non-endorsement sets an interesting precedent.  It’s one we likely have not have heard the last of once corner-case media figures begin to see it as a clever earning opportunity.

MSN, Hulu and Supercookies

Beginning a year ago, the Wall Street Journal began shining a very bright light on the myth of internet privacy.  In six in-depth articles published in 2010, WSJ readers were left wondering if anything they did online was not being peered at intrusively by marketers.

This time, the WSJ focused on “Supercookies.”  Though legal, supercookies re-create user profiles even after regular cookies have been deleted.  Enlisting the aid of a Stanford doctoral student, the WSJ found that Microsoft’s MSN and Hulu.com both had their hands in the cookie jar (sorry, couldn’t resist).

Microsoft and Hulu both responded quickly to decry the use of the technique, and  to take great pains to state that such use was not in keeping with their policies.

It turns out that New York’s Epic Media Group supplied the technology though it, like both Microsoft and Hulu, claimed surprise that its technology was being used in this manner, and had already removed it.

Though the online industry established the Digital Advertising Alliance to police itself in the wake of public concern, Washington legislators have been under pressure to enact tough legislation to protect online privacy.  A faux pas like the discovery of supercookies does not bode well for private self-regulation.