This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Coca-Cola Looks to Crowdfunding to Raise Social Media Awareness

Stocks in this article: KO PG AXP

NEW YORK (TheStreet) --Coca-Cola (KO) is tapping into the $90 billion crowdfunding market, not to raise corporate funds, but as a powerful tool to reap the social media and branding benefits.

In doing this the beverage giant, which releases second-quarter 2014 financial results Tuesday before the market opens, joins Proctor & Gamble (PG), American Express (AXP) and other companies tapping into crowds to drive innovation, increase sales and improve results for investors.

At the Monday close of $42.40, Coke stock is up 2.6% for the year to date compared with the S&P 500, up 6.8% for the same period.

Richard Swart, director of research on crowdfinance at the UC Berkeley and author of the World Bank's Report On Global Crowdfunding, said engagement techniques like crowdfunding can be "the deepest form of social engagement," allowing companies to learn more about what customers, distributors and employees are socially passionate about.

Greenberg: Allergan's Dilemma

How Coca-Cola Stock Will Satisfy Investors' Thirst for Profit

Jeff Bezos' Most Important Project Is Amazon Prime, and Everyone Is Watching

Most companies want to be perceived as socially responsible and caring. By giving seed money to crowdfunding projects that focus on what Coke lovers care about, the company forges both a stronger rapport while advertising to the world that it's a company with a conscience.

As Swart explained, "Brand loyalty is increased with a social media marketing effort than with most other forms of marketing. Crowdfunding creates collaboration and cohesiveness with a company's customers and the general public, and that's worth a fortune."

For example, Coca-Cola sponsored a crowdfunding effort in Mexico to provide more clean water sources in rural areas. This project fit well with the World Bank's enthusiasm for crowdfunding as a means to promote economic growth in developing countries and gives positive publicity for the sponsoring company.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs