• Ad Age, Monday, March 1, 2010 10:43 AM

Brands such as Quaker, Pepsi, Prilosec and Bisquick are moving beyond cause marketing to so-called microsponsorships that provide up to a few thousand dollars to consumers to fund their own pet projects, Natalie Zmuda and Emily Bryson York report.

The Pepsi Refresh program, through which consumers can apply for grants ranging from $5,000 to $250,000, is a prime example. Pepsi wants consumers choosing between a Coke and a Pepsi to think of the Refresh Project when they're about to buy. "It's that last three feet, that point of purchase," says Ralph Santana, vp-marketing at Pepsi. Pepsi is employing a "battery of diagnostics" to measure ROI, Santana says, and has partnered with third parties to ensure the quality and credibility of the program.

Experts say that the microsponsorship approach has its benefits, but warn that ROI is difficult to measure and say that it's challenging to match consumers' causes with the brand's promise. Plus, there are so many programs that it's difficult to make an impact. "It's quickly going to become a point of parody," predicts Northwestern School of Management professor Derek Rucker, comparing the rush to microsponsorships to the green-marketing push.

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