Last week, major Internet brands including Google and Wikipedia launched a cam­paign to raise public aware­ness and influ­ence voting in Con­gress on two bills regarding online piracy: the Stop Online Piracy Act (SOPA) and the Pro­tect Intel­lec­tual Prop­erty Act (PIPA). Thou­sands of web­sites par­tic­i­pated in a 24-​​hour protest of the leg­is­la­tion, and encour­aged web users to sign a peti­tion and con­tact their rep­re­sen­ta­tives. We asked Bruce Clark, asso­ciate pro­fessor of mar­keting and the Frank Murphy Family Fellow at North­eastern to dis­cuss the impact of com­pa­nies using their brands to take a stand on such issues.

Is this a one-​​off event, or the sign of a new trend? Have other brands made sim­ilar attempts in the past?  

It is unusual, but brands in the past have some­times reached out to cus­tomers and other groups encour­aging them to “call their con­gressman.” For example, in the depths of their finan­cial crisis in 2008, Gen­eral Motors solicited dealers and cus­tomer groups to lobby on behalf of the auto­mo­tive rescue package being con­sid­ered in Wash­ington. What is dif­ferent about the cur­rent example is the breath­taking speed with which Google and Wikipedia were able to mobi­lize aware­ness of and oppo­si­tion to SOPA and PIPA. Obvi­ously the Internet and social media make it easier to do this. The means to mobi­lize are thus much more pow­erful. I would expect more efforts of this type, but their suc­cess will depend on the size of the fol­lowing a brand has and the degree to which the polit­ical mes­sage matches the brand’s values. I think this would have been much less suc­cessful if the two com­pa­nies had thrown their weight behind some­thing less cen­tral to their ser­vices, such as Medicare reform.

What are the risks to brand rep­u­ta­tion when using a brand to make a polit­ical statement?  

The risk is that cus­tomers decide the brand does not stand what they stand for, and there­fore develop neg­a­tive atti­tudes toward the brand. Cus­tomers can live with not knowing the polit­ical activ­i­ties of their brands — people in gen­eral prob­ably have little knowl­edge of the lob­bying in which a com­pany they buy from engages — but once the com­pany puts it in their face, cus­tomers can no longer ignore a value con­flict. How big the damage is depends on how broad a market the brand tar­gets. For mass-​​market brands, any polit­ical state­ment risks alien­ating some part of their cus­tomer base. That may be worth the risk, but it is a risk. Niche market brands can be bolder in the sense that they prob­ably have a more coherent cus­tomer base. Niche brand cus­tomers may even be pleased when a brand annoys some non-​​customer group and thus be enthu­si­astic about par­tic­i­pating in that initiative.

How do you think con­sumers have reacted to last week’s actions? Will there be any longer-​​term impact on Google/Wikipedia’s brand image as a result? 

So far it looks as if Google and Wikipedia are the big win­ners and the lum­bering con­tent con­glom­er­ates the losers. For Google and Wikipedia, there’s a sense among their (very broad) con­stituency that the two com­pa­nies stood up for an impor­tant Internet prin­ciple, the free move­ment of all data. As I sug­gested above, one of the rea­sons this works so well for the two brands is that “freedom of data move­ment” is part of their fun­da­mental value propo­si­tion in the first place. Given this suc­cess, I think both com­pa­nies need to be careful not to over­reach. This prob­ably only works across a narrow range of brand-​​relevant issues.