Much ado about (RED)

I love Product(RED) items. Particularly the ones from Apple - the red iPod nano has always been something I’ve wanted. I even got the matching V-Moda Vibe earphones ready and waiting. As Wayne Campbell said, she will be mine. Oh yes, she will be mine.

The specially-made items are, if you don’t know, editions meant to generate charity funds to fight AIDS and HIV in Rwanda. A portion of the sales from the (RED) items like watches, cellphones, laptops, t-shirts, colognes, credit cards - and iPods - go to this fund. For example, Motorola contributes US$8.50 for each sale of the (RED) Razr, Gap gives 50% of their net profit from (RED) clothing items, and Amex gives 1% of all transactions from their (RED) card. A couple editions of the iPod nano have been made for this campaign, started a year ago by Bono.

After the first year, consumers have generated US$22M for Rwanda, but controversy is heating about the figures, which detractors claim is grossly misrepresented.

Advertising Age magazine reports that the entire campaign has raised only US$18M, but has spent US$100M in advertising collectively. People organizing the campaign claim that they’ve raised US$22M, and have only spent US$50M in advertising. Huh? Ex-squeeze me? Baking powder?

Whatever the case, it’s apparent that they spent more than they raised - and people say that the cause would have been better served if the money spent advertising was given straight to the cause in the first place. Of course, no one really knew this coming in a year ago, but maybe a bit of research and planning might have made the project a bit more worthwhile.

At least they made nice iPods, huh?

More on the issue from The New York Times.

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