Can bad publicity be good for business?

At a recent presentation to participants of a local leadership program, my colleague and I were asked if it’s true that there’s no such thing as bad publicity. In essence, the speaker was asking if bad publicity can actually help a business.

One could argue that is the case based on some recent events and findings. A study from behavioral economist Jonah Berger found that a negative New York Times book review for obscure, up-and coming authors actually increased sales by around 40 percent.

The movie “Batman V. Superman: Dawn of Justice” received a “rotten” score of 28 percent on rottentomatoes.com and a metascore of 44 (out of 100). Yet, showbiz analysts predict the movie will gross about $750 million worldwide.

The widely ridiculed and lampooned Matthew McConanaghey TV ads for Lincoln actually boosted sales for the often-neglected auto luxury brand.

So, it would seem publicity – even if it’s bad – can help, right? Well, as ESPN college football analyst Lee Corso would say, “Not so fast!”

Putting it in perspective

In explaining why negative book reviews can boost sales for some, Berger told NPR, “We don’t always remember what we heard about a book. We may remember that we heard something, but we don’t exactly remember what that something is.” He also went on to say that negative reviews can hurt sales of well-established authors like Stephen King and John Grisham.

In regards to the Batman/Superman movie, it can be considered either a success or a dismal failure when compared to other big-budget superhero movies. According to boxofficemjo.com, “The Avengers” grossed more than $1.5 billion worldwide. Held against that bar, “Batman V. Superman” is considered to be underperforming considerably.

Sales of Lincoln automobiles fell to a 32-year low in 2013, and there was talk Ford might abandon the brand altogether. Any boost in sales is considered good, but Lincoln still counts for about just 4 percent of Ford Motor’s U.S. sales and less than 2 percent of its global sales.

The bottom line

So although it may sound wishy-washy to answer the question about negative publicity helping or hurting with “it depends,” that seems to be the general consensus of recent studies and articles.

As Berger wrote in the Harvard Business Review, “When an established brand is at stake … it’s smart to make an effort to limit bad press. But if the negative publicity seems likely to increase brand awareness, smaller or unknown brands would often do better to let it go.”

Make no mistake, bad publicity can definitely hurt companies. However, it can also raise awareness of and help lesser known brands.