Why Crowdfund?
Crowdfunding platforms like Kickstarter and Indiegogo have made waves in recent years as the public embraced the notion of investing their hard-earned dollars into innovative new products by entrepreneurs and creatives. While this remains the case, we see crowdfunding attracting a new crowd in 2018 - major multinationals and industry heavyweights.
Ad Age recently reported on the likes of Lego and Coca-Cola leveraging crowdfunding platforms to test the viability of new product ideas. Eschewing the traditional focus group research process, crowdfunding is increasingly seen as a viable place to dip a toe in the water to garner real insights. With crowdfunding, brands can offer a conceptual idea in its early stages and gauge whether or not there’s an appetite for it; this process helps brands make more informed decisions on whether further product development is worth the additional resources.
“With crowdfunding, consumers pay to get early access to products. They also get bragging rights for being involved in the development early on. For brands, the benefits are even greater: They get a dedicated and invested consumer willing to provide feedback and research testing for very little cost.” - Ad Age
Beyond research & development, brands are also seeing the benefits of using crowdfunding to launch products to a warm reception and kickstart the public conversation. For a recent projector launch by Anker electronics, The Verge confirmed that Anker chose crowdfunding to build hype and “actually spread the word of mouth” via enthusiastic project backers. Whether or not this approach becomes more mainstream remains a question, but it does appear that the usage of crowdfunding is evolving beyond its original purpose to encompass a broader spectrum of marketing possibilities.