News

Panera Bread takes a marketing stand

June 28, 2012

When Panera Bread became the first major advertiser on SheKnows.com, a popular website for women, the executive team was more than enthusiastic. However, their enthusiasm turned to dismay when Panera Bread discovered the website's editors were being asked to click on advertisements to drive up views.

Panera Bread pulled its ads and the two executives accused of issuing the click-fraud directives have been suspended. While publications such as AdWeek featured stories about the debacle, do consumers really know or care if Panera Bread pulls an ad from websites geared toward one demographic – even if it's the company's largest?

"(Consumers) know when it makes the news, like it has here," said Rhonda Sanderson, founder of Chicago-based public relations firm Sanderson & Associates. "The thing is, what Panera probably realized was, if this can be 'faked' it’s not worth their ad money.  I mean every company has an ad budget and there are better places they can use those ad dollars where they will realize honest results."

By pulling the ad, Panera Bread is sending a message to both consumers and advertisers.

"It sends the message to me, as a consumer and a PR woman, that they are cutting edge enough to use sites that reach their audience, but clearly the sites have to be legit," Sanderson said. "No person or company wants to be associated with a scandal, and Panera has a solid reputation and probably feels a bit duped. They absolutely should have pulled out and not been ashamed to admit they believed in this site and are appalled by what they learned."

Panera Bread pulled the ads because the marketing tactic isn't one they support. But the issue of taking a stand on where and how marketing dollars are spent isn't limited to large chains. Rather, any chain that spends ad dollars on websites and in print should take notice and recognize their advertising selections are viewed by both consumers and potential investors.

"Franchisors in particular have to reach two key audiences. The people who buy their bread and sandwiches, and the people who may want to buy their franchise," Sanderson said. "They have a duty to remain above board for those franchisees and future ones.  Panera pulling the ad was just a good business move. It probably wasn’t even a political statement as much as 'hey we are spending these ad dollars and aren’t even getting honest results.' But of course it shows they have moral standards."

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