#TheMarketingFailFile: 5 Marketing Disasters That Brands Wish You’d Forget

“But the one thing they love more than a hero is to see a hero fail, fall, die trying.” These words by Willem Dafoe in the movie Spider-Man can be re-interpreted in the marketing context as everyone loves to see a marketing campaign fail. Or at least I do! Why? Because a marketing blunder and its repercussions lead to hundreds and thousands of well-thought-out, properly executed, and cleverly launched ad campaigns.

As for the audiences, we are in for hearty laughs at the expense of these marketing mishaps. Sounds like a win-win for everyone, right? Umm, not everyone! Please wait until you see what became of these brands after they committed marketing harakiris in our latest blog series #TheMarketingFailFile, which uncovers some of the biggest marketing fails from the advertising world.

So, without any further ado, let’s take a look at 5 marketing disasters that cost brands millions and their reputation.

1. American Airlines: AAirpass (1980s)

What happens when you launch a campaign thinking that it will help you make a fortune in the long run but ends up draining your capital by millions of dollars? This ad campaign by American Airlines will help you figure out how to steer clear of such prodigal campaigns.

In the 1980s, American Airlines introduced the AAirpass, which they thought to be innovative but ultimately turned out to be a disastrous product. The AAirpass was an unlimited first-class flight pass, which allowed customers to travel anywhere American Airlines flew for a flat fee of $250,000. As amazing as the idea seemed to be on paper, the sheer volume of flights taken by AAirpass holders bled the company millions of dollars almost right away. When the airline tried canceling the memberships, outraged customers sued them.

The company incurred massive losses running into millions of dollars. Even more expensive was the loss of face, which the company had to experience due to its poorly planned marketing campaign.

2. LifeLock: The Social Security Number Display (2006)

If you own a business, make sure that your claims actually line up with what your company can deliver. Otherwise, you might be in for a hard time like Todd Davis, the CEO of the identity theft protection company LifeLock.

In 2006, Davis decided to pull a stunt to demonstrate his confidence in his company’s product. The company revealed Davis’s social security number on a series of banners that were used on its website, posted on billboards, and distributed in print.

The result? The company was presented with a $12 million fine from the FTC for deceptive advertising. Then there was a class action case resulting in LifeLock agreeing to pay out $68 million to settle allegations that the company failed to keep its promise of continuous security. Moreover, the company was ordered to pay out $32 million to victims from the state Attorney General’s Office cases.

But Davis’ problems didn’t end there as he had his identity stolen at least 13 times since 2007. One criminal from Georgia used it to rack up over $2,300 worth of phone calls and debt collectors were left seeking another $3,700 from people other than Davis using the number.

3. Fiat: Anonymous Love Letters (1994)

Poor ad campaigns often make one wonder how they passed through multiple levels of approval. This 1994 marketing blunder by Italian car manufacturer Fiat is one such campaign that will leave you scratching your head and questioning the sanity of the marketing ‘experts’ behind this ad.

In 1994, Fiat sent out 50,000 anonymous love letters to young women in Spain. These letters, written on pink paper, included gems like—

“Yesterday we saw each other again. We met on the street, and I noticed how you glanced interestedly in my direction. I only need to be with you for a couple of minutes, and even if it doesn’t work out, I promise you won’t forget our little experience together.” 

The company planned to send a follow-up letter after a few days, revealing its new Fiat Cinquecento as the secret admirer. However, before any of that could happen, the campaign fell flat on its face with women feeling scared about being stalked. While some locked themselves in their apartments and would leave only in the presence of male company, others reported facing jealousy issues in their relationships.

Ultimately, Fiat ended up getting sued, had to pay fines, and followed up the ad campaign with apology letters.

If only they had consulted independent, modern working women about the campaign, they would have come to realize that for most women receiving anonymous love letters from someone secretly watching them is creepy, not flattering or romantic!

4. Pepsi: Number Fever (1992)

Running cash prize contests can be a great way for brands to briefly ramp up sales for their products. But if not executed properly, these contests can turn nightmarish, as Pepsi found out after its 1992 Number Fever contest in the Philippines ended up killing five people and resulted in wide-scale protests in the country and calls for its boycott.

The idea behind the contest was simple— numbers would be printed on the caps of Pepsi bottles and each evening local news outlets would announce winners. Most daily prizes were small, about 100 pesos. But the grand prize was worth a million pesos, which was 611 times the national average monthly salary. The prospect of a possible million kept people playing and the contest, which was initially slated to end on May 8, boosted sales so much that it was extended right up to the next month. Filipinos frantically bought bottles and searched for stray caps, sometimes even scavenging through the trash.

On May 25, the grand-prize winning cap was revealed with the victorious number being 349. However, things went awry as a malfunction saw the winning number 349 being printed on thousands of bottle caps, instead of just two. This meant that Pepsi would have to pay billions of dollars to the winners— far more than what they had thought.

When the company refused to pay, riots erupted, which led to the deaths of a teacher and a 5-year-old, including three others. Multiple courts later sided with Pepsi, which ultimately did not have to pay out any of the billions that frustrated Filipinos had sought to claim.

However, many Filipinos who experienced 'Number Fever' are still traumatized by it to this day and a mere mention of the weeks-long contest may elicit a negative response even today.

5. Norsk Tipping: Lottery Goof-Up (2025)

In case you were thinking that marketing goof-ups like the ones mentioned above are now a thing of the past, here’s something from less than three weeks ago. Similar to the Pepsi prize mix-up, this marketing disaster by Norway's state-owned gambling company Norsk Tipping left customers infuriated.

The gambling company reportedly mistakenly told "several thousand people" that they had won "excessively high" Eurojackpot prizes, due to an error in the code that converts euro cents to Norwegian kroner in the gaming system. The company later announced in a press release that it had removed the incorrect prize amounts from its website and app, adding that the correct prize overview was uploaded to its platforms.

However, the damage had already been done with the company amassing sharp criticism from the country’s gambling regulator as well as the upset customers. The ensuing saga saw the company’s CEO Tonje Sagstuen first issuing an apology and then stepping down from her position in what many saw as a desperate bid by the company to save face.

You see when such blunders happen, heads have to roll!

Wrapping Up

And that’s a wrap of our first edition of #TheMarketingFailFile. These marketing disasters teach us that no matter how novel your idea or how awesome your product is, if you don’t have the right marketing brain to back them up, it could turn out to be disastrous and leave you and your company red-faced. No marketing campaign is always better than a poorly planned and shoddily executed one!

We’ll be back with more awesome (or not-so-awesome) ad campaigns for you. Till then, stay tuned!