Can Brands Buy Back Consumer Trust?

By Ben Zimmerman, president at SmartMedia Technologies.

You might remember the Bud Light incident involving Dylan Mulvaney this spring. Many also probably recall the ensuing media frenzy and negative reactions from some consumers. But are you familiar with the response from Bud Light?

Let’s review the backstory. Mulvaney, who started her career in musical theater, turned to TikTok in 2020 when the pandemic paused in-person events. She came out as a trans woman in March 2022 and began a social series called “Days of Girlhood” to document her transition. As the series gained traction, Mulvaney landed partnerships with major brands. All the while, she became a target of anti-trans backlash.

In April of this year, Mulvaney posted an Instagram video promoting Bud Light. Simultaneously, the company sent Mulvaney a special can of Bud Light featuring her face. And what was intended as an innocuous response to a harmless internet stunt seemingly went viral overnight.

This led to backlash on both sides of the table. Some consumers railed against Bud Light, threatening to boycott the beer. In May 2023, AdAge reported (paywall) that Michel Doukeris, CEO of Anheuser-Busch InBev, “attempted to downplay” the issue during an earnings call. While Doukeris expressed concern about “misinformation,” he faced criticism from some advocacy groups for failing to defend Mulvaney.

The legacy beer brand saw retail sales drop between 25% and 30% in the months following its promotion with Mulvaney. In May, AdAge also reported that Bud Light planned to triple ad spending over the summer.

Can brands buy back their reputation?

Can a brand recover its reputation and win back favorability through increased ad spending alone? The answer to this question is far from straightforward. With football season being a critical time of year for domestic beer brands, it’s a given that marketing spending would be higher right now for a company like Bud Light. Still, I’d wager that ad dollars aren’t the only contributing factor to a business regaining favorability.

Brands must also consider their ability to address the underlying issue (if it’s a social issue, this might mean on both sides of the proverbial table). Communicating your commitment to change and demonstrating authenticity are essential as well. It’s a complex process—and one that cannot be solely achieved through increased ad spend.

Is it playing both sides or petty pandering?

When a brand faces controversy or a tarnished image, simply pumping money into advertising might not be sufficient to repair the damage. The relationship between consumers and brands is a complex one built on trust, quality and ethics. Consumers today seem to be more discerning than ever. They expect brands to not only provide quality products but also to align with their values—even if those values vary based on demographics and segments. It’s a tough predicament, as playing both sides can come across as petty pandering.

So if a brand can’t simply buy its way back, what else can it do? For some brands, product innovation might be at the core of their strategy. While high-profile marketing campaigns may keep a company top of mind, it’s equally important to monitor consumer sentiment, trust and loyalty. A successful recovery may require a multifaceted approach rooted in the following:

1. Transparency

Brands must be open and transparent about the issues they face and the steps they are taking to address them. An effective PR and media strategy often requires swift action and a timely response, while concealing or downplaying controversies can only further erode trust.

2. Accountability

Rebuilding a brand’s image takes consistency. Brands should stay the course and continue to prioritize ethical practices and positive contributions to society. However, the first step is for brands to take responsibility for situations they’re involved in. Acknowledging actions—be they wins or blunders or anything in between—and showing genuine emotion can go a long way in rebuilding trust.

3. Engaging With Consumers

Listening to consumers, engaging with them in meaningful conversations and incorporating their feedback can be invaluable in the recovery process. While advertising can help communicate a brand’s intentions, it’s crucial that concrete actions back up these intentions.

Winning back favorability involves more than boosting brand awareness; it requires a comprehensive approach to address the root of the issue. Brands must strategize how to rebuild trust with everyone, from their supply chain partners to their customers, and not plan to simply throw money at the problem.