ica presentation - disclosure of material connections in social media
DESCRIPTION
TRANSCRIPT
Plug Away:
Disclosure of material connections in social media channels
David Kamerer, PhD, APRLoyola University Chicago
Follow me on Twitter @davidkamerer
Organic content orcommercial?
Disclosure of material connections
16 CFR Part 255
“Guides Concerning the Use of Endorsements and Testimonials in Advertising”
Resource:
FTC “dot-com” disclosures guidehttp://1.usa.gov/cScCMo
Failure to disclose is not new
Payola
In-program selling
Product placements in film/TV
Ann Taylor
FTC: it is the advertiser’s responsibility to assure disclosure, not the blogger’s
Legacy Learning Systems$5 million sales
$250,000 fine
Reverb Communications memo:Reverb employs a small team of interns who are focused on managing online message boards, writing influential game reviews, and keeping a gauge on the online communities. Reverb uses the interns as a sounding board to understand the new mediums where consumers are learning about products, hearing about hot new games and listen to the thoughts of our targeted audience. Reverb will use these interns on Developer Y products to post game reviews (written by Reverb staff members) ensuring the majority of the reviews will have the key messaging and talking points developed by the Reverb PR/marketing team.
Online, ads don’t work
Typical response rates
Targeted email 5.00%Direct mail 3.00%Rich media 0.14%Banner ad 0.08%
The failure of outbound tactics
Source: Ad Age, 2010
How are blogs funded?
• No funding – hobby• Banner ads• Search ads (Google AdSense)• Affiliate programs• Pay per post• Free goods & services
Rarely: ecommerce, memberships
The advertiser’s view:
•No one looks at/clicks on banners•Bloggers have negotiable standards•It’s easy to purchase influence
The blogger’s view:
•Not making much from ads•Eager to monetize site•Open for business•Rationalization:
“I received X from Y”“But the opinions are my own”
Two inquiries:
1.Study of top style blogs
2.Examination of celebrity Twitter feeds
Method, style blog inquiry:
1.Sampling frame: top style blogs as curated by Signature9.com2.Only U.S. blogs included, N = 683.Rubric:
PageRank (scored 0-10)Link score (0-10)Unique IP links (0-15)Alexa rank (0-15)Twitter score (0-10)Facebook domain activity (0-15)Google blog links (0-15)
Results: many revenue streams
Tracking software shows ad relationships
Average of 14 tracking services on style blogs
•Analytics•Share buttons•Third-party ad networks
(source: Ghostery plug-in)
At left, tracking software from the blog LoveMaegan
Almost three-fourths of the sample did not disclose in-post
Examples of in-post disclosures
Not quite a disclosure: c/o (“courtesy of”)
In- post
SiteState-ment
Influencers/Advertisers
• Always disclose, even if in doubt• Only work with ethical influencers• Also use a site statement, linked on home page• Goal: to avoid consumer confusion• FTC dot-com disclosures http://1.usa.gov/cScCMo
Consumers
• Media literacy• Understand the ad-supported (free) web• Search engines are complicit
For more information:
http://davidkamerer.com(search for “corruption”)
http://delicious.com/davidkamerer/disclosurehttp://delicious.com/davidkamerer/corruption
On Twitter:@davidkamerer
Email:[email protected]
Thank you!