The biggest advertising agencies are predicting a wave of green marketing campaigns as businesses compete on their environmental claims - some even arguing that it could become a matter of their very survival.
Agencies say communicating green values is fast becoming an act of "corporate hygiene" needed to retain competitiveness and standing with customers.
The heads of AMV BBDO, JWT, Ogilvy, RKCR/Y&R and Saatchi & Saatchi have told the FT they believe green advertising will grow in the next 12 months. All were in the top six UK agencies by gross income in the most recent industry report by Willott Kingston Smith, the leading advertising auditing firm.
The agencies say environmental branding has risen up boards' agendas, and point to the spate of recent rival green announcements in the grocery retail sector.
Farah Ramzan Golant, chief executive of AMV, said: "We're at a tipping point. I really believe we are going to see more of this."
Advertisers that make green claims for products and services however face unprecedented public scrutiny, particularly from bloggers and other web users.
Some experts warn those that unveil unpersuasive or me-too initiatives on carbon neutrality or sustainable sourcing, for instance, will see little benefit.
At best they would not receive the free press coverage some announcements had enjoyed but would have to use paid-for marketing to persuade sceptics. At worse they could suffer a backlash if their claims proved wrong or inconsistent.
Lee Daley, chairman and chief executive of Saatchi & Saatchi UK, said: "Brands will not be able to opt out of this. Companies which do not live by a green protocol will be financially damaged because consumers will punish them. In the longer term, I do not think they will survive."
There is still some scepticism at the commercial benefits of making environmental commitments. But they have long been seen as a display of corporate social responsibility. More recently it has been argued that they can influence brand preferences of some consumers.
Alison Burns, chief executive of JWT London, said: "Once a company makes an environmental statement, its direct competitor is now conspicuous by its absence if it hasn't too. Consumers are suspicious of that silence. This isn't restricted to a particular industry. It is in-creasingly pervasive. There is an underlying expectation that we are asking more questions about companies' intentions. That is partly a phenomenon of the digital age where consumers are used to interviewing brands like they might be interviewing people for a job."
Agencies warn companies against "rushing in" and exaggerating their environmental commitments, if they cannot substantiate them.
The Advertising Standards Authority has upheld complaints about green campaigns from Scottish & Southern Energy, Npower and Volkswagen. Although such complaints are rare, the ASA expects them to increase.
James Murphy, chief executive of RKCR/Y&R, the advertising agency for Marks and Spencer, adds: "There is no shortage of interest groups scrutinising brands and businesses. This whole area is a bit of a vigilante market. I think in time a strong environmental brand will become a hygiene factor of doing business. It will also allow you to increase customer loyalty and charge a premium."
Businesses urged to beware activist blog views
Businesses keen to market themselves as green have been warned not to mistake the activist views of eco-bloggers for those of mainstream internet users.
Initiative Media, the media buying group, tracked environmental discussions among 18,000 users on specialist English language blogs and websites as well as mainstream online forums.
It advises advertisers to be selective about the causes they endorse and to ensure any new green products serve a consumer need rather than appeal to the altruism of a minority.
In its research, Initiative classified 47 per cent of the online messages it surveyed as ambivalent towards "the state and future of the environment", and 39 per cent as optimistic. This is in contrast to the often cautionary, urgent tone of green campaigners.
Consumers' moods also varied by subject. They were more likely to be positive on alternative energy and vehicle emissions than global warming. Many were confused or apathetic because of apparently conflicting arguments.
Initiative said the study, conducted between April and June 2006, was skewed towards US sites and the findings might reflect this.
