American Eagle’s sales have boomed and their share price surged by 25% following the ad controversy.
👉 Background: American Eagle is the publicly listed US clothing and accessories brand that started in 1977 in Michigan, USA. It’s now sold in over 30 countries worldwide and, it’s known amongst Gen Z-ers for its on-trend, comfortable and affordable styles.
👉 What happened: American Eagle’s most recent ad campaign almost got them cancelled. The ad featured Sydney Sweeney wearing blue denim and had the tagline “Sydney Sweeney has great genes” — using wordplay between denim jeans and genetic genes.
👉 What else: This campaign received a LOT of backlash, mainly for focusing solely on Sydney Sweeney’s physical appearance. Yet despite receiving major backlash from consumers, American Eagle’s sales have boomed and their share price surged by 25% following the ad controversy.
What's the key learning?
💡In today’s media landscape, bad PR can still be effective PR. Being controversial is a strategic way to amplify brand awareness, spark viral conversations, and ultimately drive more sales.
💡Studies have shown that the average Australian are hit with anywhere from 4,000 to 10,000 ads per day, so brands are constantly competing not just your attention, but also for you to care about them. That’s definitely proven true for American Eagle after its ad campaign generated 40 billion impressions and an increase of 700,000 new customers. And Sydney Sweeney’s jean collaboration sold out in just 1 week — even while the hate comments were rolling in.
💡But there’s obviously a fine line. Think: Kanye when his contract with Adidas was ripped up following his anti-semitic tirades which cost Adidas an estimate €500 million loss in operating profit for that year alone! But clearly, this risque campaign seems to be working for American Eagle... for now at least.
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