Culture wars continue to heat up, marketers face choices of repositioning or strategic contraction
In 2023, marketers initially focused on budgets and industry changes at the start of the year, but brands such as M&M's, Bud Light, and Target were successively drawn into culture wars, triggering boycotts and sales declines. The marketing industry faces a choice: continue purpose-driven marketing or return to functional value propositions. Economic pressures and the rise of generative AI further influence strategic adjustments.
At the start of 2023, marketers were keeping an eye onbudgets and profit marginswhile also watching a series oftransformative initiativesaimed at disrupting the advertising industry.
However, things quickly went off the rails when M&M's announced in January that it was taking its cartoon spokescharacters on an "indefinite pause." The characters had been a focus of conservative criticism since a controversial rebranding around inclusivity in 2022. The whole episode ultimately turned out to be a stunt orchestrated for its Super Bowl ad, but that adfailed to sustain the pre-game buzz, leaving most viewers confused.
The M&M's incident quickly faded from view, but it was instructive for marketers in the first half of 2023. While concerns about ad-supported streaming, cookie alternatives, and measurement currencies persisted—and as the focus shifted from themetaverseto generative artificial intelligence (AI), the new marketing hot topic—marketers' biggest worry in 2023 was how to keep their own actions from being swept up in the political culture wars that have dominated headlines and sparked boycotts of brands like Bud Light and Target.
As marketers entered the critical planning period for the second half of the year, many had to rethink the role of the brand: whether to continue as a vehicle for purpose-driven actions, a direction many brands had tried over the years, or to return to a more traditional identity based on value propositions. For marketers navigating an increasingly treacherous landscape, it felt like building the plane while flying it.
"We don't know if this is going to be a long-term situation or just a temporary wave of hostility and boycotts that might subside soon," said Karthik Easwar, associate professor at Georgetown University's McDonough School of Business. "If this is a fundamental shift in consumer response, I think it will bring more complexity and challenges, especially for large brands that cater to a broad swath of American consumers."
Lessons from Bud Light and Target
For many marketers, Bud Light was the canary in the coal mine, a warning that brands could be quickly and violently pulled into cultural conflicts that affect profits. Earlier this year, the brand sent influencer Dylan Mulvaney acustomized beer can with her face on itto celebrate the one-year anniversary of her gender transition. Soon, the brand and the influencer became the focus of calls for boycotts from right-wing media figures.
"We know very well that, strategically, [Bud Light] wanted to diversify and reach new audiences, and that was the driving force behind its marketing. I'm not sure they realized that the dominant voices of a small group could take up so much media space," said Ian Schatzberg, CEO and co-founder of brand agency General Idea.
Parent company Anheuser-Busch seemed to try to let the boycott storm blow over, but its actions—including putting two marketing executives on leave—did not effectively contain the situation. Bud Light sales began to decline, and the beerlost its status as the best-selling beer in the U.S. for the first time in more than two decades。
"A brand that's already been wounded like this is a bit like—who's the coyote going to eat?"
Mark DiMassimo
Founder and creative director, DiGo
Target soon became the next domino to fall. After incidents in stores that threatened employee safety, the retailer decided topull some items from its annual Pride collection. But by responding to the boycott from anti-LGBTQ+ forces, the retailer also angered the communities it had been trying to reach with its Pride collection.
"Brands are now in this dilemma," Easwar said. "Some people feel [the brand] didn't stick to its position of being inclusive, because another group said 'we don't want it.' If you keep it, you anger one group; if you pull it, you anger the group you're trying to include."
Overall, brands were relatively low-key during June's Pride Month. WhileSkittlestoSmirnoffand other long-time participants continued to wave the Pride flag, other brands seemed to wave the white flag, toning down purpose-driven actions around identity and culture—a strategy that had been a key marketing tool for years.
As for Bud Light and its parent company Anheuser-Busch, they have actively tried to change the narrative after the boycott with ad campaigns centered onsummer drinkingandbeer brewing. But it remains unclear whether this return to basics can slow the loss of market share that mass-market light beers like Bud Light have suffered for years—brands that had been fighting the decline by reaching younger, more diverse audiences, and now those very moves have accelerated the fall.
"Unfortunately for Bud Light, it's Bud Light... It's beer water with a logo that people had an affinity for, so once that affinity is polarized or broken, consumers can easily switch to other brands," said Mark DiMassimo, founder and creative director of creative agency DiGo. "A brand that's already been wounded like this is a bit like—who's the coyote going to eat?"
The way forward
Even if the current divisive atmosphere is short-lived, the risk of being dragged into culture wars may be enough to force marketers to rethink the role of the brand in the market and in consumers' lives. This could mean less purpose-driven marketing around various causes.
"I can imagine in boardrooms, [executives saying] the role of the brand is not to create identity-oriented, community-based messaging—the role of the brand is to offer products at a reasonable price," Schatzberg said. "I suspect you'll see companies potentially pivot to more functional value propositions in the coming months, rather than things closer to culture and identity."
Ongoing economic pressures could also reinforce a focus on basic value propositions, and brands may avoid cultural and identity-related messaging during the holiday season. While this may be the safe play, it's not a one-size-fits-all approach.
"You'll also see some brands stick to their defined purpose and the role they play in popular culture, and they'll continue to do so," Schatzberg said. "I expect you'll see different camps with different views on how to navigate the consumer landscape."
In recent years, during the holiday marketing period, brands have not only embraced gifts and gatherings but also incorporateddiversity and inclusioninto their seasonal messaging, but this year that strategy seems unlikely. Jim Beam and Smirnoff have recently emphasized the importance ofhuman connectionand have respectively responded to the "fun recession," and these efforts may foreshadow the direction of marketing messages this holiday season.
"I suspect you'll see companies potentially pivot to more functional value propositions in the coming months, rather than things closer to culture and identity."
Ian Schatzberg
CEO and co-founder, General Idea
Beyond concerns about purpose, culture, and creativity, recessionary pressures may also continue to force marketers to focus on the fundamental elements that are core and authentic to a brand's identity.
"As marketers, we need to be rigorous and precise about what's critical this year," said Josh Golden, CMO of marketing experience company Quad. "A precise approach can yield some great moments of exposure, and if you have a solid internal team, you can keep energy for other things that aren't top priority."
AI: The new hot topic?
One of the top priorities will remain generative AI, which dominated tech and marketing headlines all year. News related to this hot technology has largely focused on adoption by ad platforms and agencies, with only a few brands ready to experiment with AI. For brands moving away from purpose-driven approaches in tough economic times, AI may be seen as a way to increase efficiency. But viewing AI solely through a cost-saving lens could be risky.
"Rushing to embrace AI solely for cost reasons is equivalent to optimizing for the lowest available CPM," said Erik Hamilton, vice president of search and social at independent agency Good Apple, in an email comment. "Smart marketers know that what happens after the impression is what really matters—a long-term, intentional testing strategy yields the greatest savings."
Not everyone thinks generative AI is just the latest shiny object for marketers (succeeding the recent metaverse). Quad's Golden said platforms like ChatGPT could be game-changers, empowering marketers to do their jobs better.
"I'm excited about the time-saving aspects of this [technology], while letting really smart marketers focus on other areas—connecting dots, inspiration, and making non-logical connections," he said.
Having more time to think about creative solutions to new problems is a core responsibility of marketers. Perhaps AI will help marketers navigate the difficult cultural landscape that is reshaping consumer expectations of brands. Marketing is a gamble, and marketers must take risks to reap rewards, Golden said.
"Frankly, marketing steps into the center of cultural trends and has to grab it," he said. "Sometimes, unfortunately, it's a grenade."