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Companies using risky ads amid rollbacks of diversity

programs

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Ads criticized for promoting white-centric ideals,

controversial

endorsers

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Experts warn that risky ads may harm brand reputation

long-term

By Samantha Marshak and Julaiza Alvarez

Aug 20 (Reuters) - In an era of short attention spans

and a White House that has declared war on diversity programs,

companies are embracing edgier marketing. But the strategy can

carry risks.

Swiss watchmaker Swatch recently got in trouble for an

ad that mimicked racist taunts against Asians and had to

apologize. The ad featured an Asian male model pulling up and

backwards the corners of his eyes in a "slanted eye" pose. It

was not clear if the mistake was an intentional bid to grab

attention.

The Swatch misfire was just one in a growing number of

norm-breaking advertisements that come amid a rollback in

diversity programs in the U.S. In addition, shoppers'

constrained budgets and short memories have prompted companies

to green-light riskier ads that they hope will help them stand

out in a competitive market.

In pursuit of going viral, companies including American

Eagle Outfitters ( AEO ), Dunkin Donuts and Elf Beauty ( ELF )

recently released advertisements that were immediately

criticized on social media for seemingly promoting white-centric

beauty ideals, or for hiring celebrity endorsers who might have

negative associations.

American Eagle's ad featured Sydney Sweeney - an actor popular

with Gen Z and known for her parts in hit shows including "The

White Lotus" and "Euphoria" - who played on the similarity

between the words "jeans" and "genes."

The commercial was widely panned on social media for possibly

raising issues of genetic traits in a racial context. U.S.

President Donald Trump even weighed in on the controversy,

calling the commercial by Sweeney, a registered Republican, the

"HOTTEST ad out there" and saying "Being WOKE is for losers."

Dunkin followed with an ad featuring actor Gavin Casalegno

promoting a new summer drink called Golden Hour. In the ad,

Casalegno attributes his tan to genetics, saying "This tan?

Genetics. I just got my color analysis back. Guess what? Golden

summer. Literally."

Swatch, American Eagle Outfitters ( AEO ) and Dunkin did not

immediately respond to requests for comment.

Businesses - especially those that make money from buzzy trends

- are pushing the envelope as recent federal actions have

shifted the legal and regulatory landscape surrounding

diversity, equity, and inclusion (DEI) programs. The notion of

inclusivity had been a cornerstone of many companies' marketing

since 2020, when the death of a Black man, George Floyd, at the

hands of Minneapolis police, became a catalyst for the Black

Lives Matter movement. Five years later, that idea has been

de-emphasized.

"Marketers are between a rock and a hard place. They know

that the more inclusive they are, the less likely they are to

get some social media buzz," said Allen Adamson, co-founder of

marketing consultancy Metaforce. They are taking more risks to

try to break through to a younger, targeted audience, he said.

'UNFORCED ERROR'

Any gains from these ads, though, could be short-lived. They

risk harming a brand's reputation in the longer run and may

alienate a large consumer base of non-white shoppers, branding

experts said.

"Whether it's the Black consumer, the Asian consumer, the Latin

consumer, when American Eagle does an ad like that, they're

excluding and they're leaving money on the table," said Angeli

Gianchandani, an adjunct professor at New York University and a

brand strategist who has worked with the likes of Tiffany.

Gianchandani said while non-Hispanic white Americans

dominate U.S. buying power, these other demographics are growing

faster.

L'Oréal faced criticism this month for partnering

with a content creator on OnlyFans who posts lifestyle as well

as adult content. The move went against the company's own stated

guidelines for working with social media influencers that says

these partners will not "engage in behaviours which could be

interpreted as ... pornography."

Elf's ad that starred Matt Rife, a comedian who has made

headlines for his joke about domestic violence, drew swift and

sharp reaction online. It prompted an apology from the company

whose trendy, inexpensive products are a hit with young

shoppers.

L'Oreal and Elf did not immediately respond to requests for

comment.

"That is not a blind spot; that is a brand knowingly

stepping into controversy with someone who does not align with

its values," said Gianchandani, calling the move an "unforced

error."

Unlike Elf, and also Swatch, which apologized quickly for

their ads, American Eagle stood by its campaign.

Ashley Schapiro, American Eagle's vice president of

marketing, said on LinkedIn that on a Zoom call with Sweeney,

company executives asked her, "How far do you want to push it?" 

"Without hesitation, she smirked and said, 'Let's push it. I'm

game.' Our response? 'Challenge Accepted'."