Dive Brief:
- The University of Phoenix is embracing its namesake’s ability to rise from the ashes and start anew, launching a new "We Rise" ad campaign to rebuild the embattled company’s reputation and attract more qualified students.
- Inside Higher Ed reports that the ads focus on working adults and negative perceptions, with one commercial featuring a diverse group of students studying in between work and family commitments and another showing alumni countering online criticism of the University of Phoenix and the value of their degrees.
- While there have certainly been skeptics disparaging the new campaign on social media, the for-profit education company says the reaction has been net positive after the first week.
Dive Insight:
After massive growth in the early 2000s, the University of Phoenix has struggled following the economic recovery as more potential students choose to work full-time instead, in addition to facing increased regulation from the federal government, and more critical states attorneys general. The Department of Defense temporarily banned the university from recruiting on military bases. Its parent company is facing an FTC investigation. And President Obama has proposed changing the 90/10 rule to 85/15 and also counting Defense Department tuition assistance toward the total. While Republicans blocked the change the last time it was proposed, it is still a serious, theoretical threat to the for-profit’s operations.
With the recent $1.1 billion acquisition of its parent, Apollo Education Group, by private equity firm Vistria Group and others, however, comes an effort to clean up the company's image. In addition to the ad campaign, the University of Phoenix is testing out new admissions requirements and working to stabilize enrollment at 2002 levels, when the company was smaller but still profitable.