Tag: marketing

  • Chasing away the astroturfers

    Chasing away the astroturfers

    Yesterday we heard the collective gnashing of teeth as social media experts, lawyers and business owners complained about the Australian Advertising Standards Board’s ruling that companies are responsible for comments on their Facebook pages.

    The ASB ruling (PDF file) was a response to complaints that comments on Diageo’s Smirnoff Vodka page breached various industry codes of conducts and encouraged under age drinking.

    While the board found the complaints weren’t justified – something that most of the hysterical commentators overlooked – the ruling contained one paragraph that upset the social media experts and delighted the lawyers.

    The Board considered that the Facebook site of an advertiser is a marketing communication tool over which the advertiser has a reasonable degree of control and could be considered to draw the attention of a segment of the public to a product in a manner calculated to promote or oppose directly or indirectly that product. The Board determined that the provisions of the Code apply to an advertiser’s Facebook page. As a Facebook page can be used to engage with customers, the Board further considered that the Code applies to the content generated by the advertisers as well as material or comments posted by users or friends.

    The key phrase in that paragraph is “over which the advertiser has a reasonable degree of control”. Obviously someone posting on Twitter, their blog or someone else’s website is beyond the control of the advertiser.

    With Facebook comments, the onus is on businesses to make sure there is nothing illegal appearing on their streams and any misconceptions or false statements are answered.

    In many ways, this is common sense. Do you, as a manager or business owner, want your brands tarnished by idiots posting offensive or illegal content? Sensible businesses have already been dealing with this by deleting the really obnoxious stuff and politely replying to the more outrageous claims by Facebook friends.

    What’s more important with both the ASB ruling and the Allergy Pathways case the ruling relies upon make it clear that ‘astroturfing’ on social media sites won’t be tolerated.

    Astroturfing is the PR practice of creating fake groups that appear to support a cause or product. A group paid for by an interested party appears to grow naturally out of community interest or concern – a fake grassroots group so to speak and hence the word ‘Astroturf’ which is a brand of artificial grass.

    Organisations like property developers and mining companies have been setting up Facebook pages and websites that appear to be community groups supporting their projects and many smaller business have been inducing friends, relatives or contractors to post false testimonials. In the run up to major elections in 2012 and 13 we’re seeing many of these fake groups setup to push various political agendas.

    For a few consulting groups, astroturfing has become a nice line of business and those of us on the fringe of the social media community have been watching the development of ‘online advocacy services’ with interest.

    While no-one has claimed Allergy Pathways or Diageo were posting fake testimonials on their own Facebook pages, the rulings in both cases are a warning that the courts and regulators are prepared to deal with those getting clever with social media.

    For honest businesses this ruling is a non-issue, it’s timely reminder though that web and social media site are not ‘set and forget’ but need to be regularly checked, valid customer comments replied to and inappropriate content removed.

    The ASB ruling reaffirms what sensible social media experts have been advising all along, and that’s good news for them and their clients.

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  • The Olympian quest for control

    The Olympian quest for control

    “Blogs or tweets must be in a first-person, diary-type format and should not be in the role of a journalist,” state the International Olympic Committee’s social media guidelines.

    The London Olympics Committee betrays how their ignorance of how the Internet works with an unrealistic and unenforceable linking policy.

    More worryingly, an army of ‘brand police’ are scouring Britain for renegade cake decorators or knitting clubs breaching Olympic copyrights. Council trading inspectors have been redeployed from their main role of protecting the community to guarding the sponsorship values of the IOC and the world’s biggest corporations.

    All of this is about control – a country that bids to host the Olympics agrees to draconian rules and regulations on free speech and commerce. Athletes too find themselves subject to harsh, and sometimes arbitrary, controls.

    The purpose of these controls is to enhance the commercial value of sponsorships – this is why only McDonalds can serve fries, except with fish, at Olympic venues and only Visa credit cards can be used to buy a souvenir t-shirt.

    Like all major sporting organizations, the value of Olympic rights exploded with the growth of advertising and broadcasting rights from the 1960s onwards.

    We’ve reached the logical end of that growth as broadcasters struggle under the load of funding massive rights payments and advertisers find campaigns based on what worked in the 1960s or 1980s have less resonance with the debt addled consumers of the 2010s.

    None of this will stop the IOC and other sports administrators from enacting iron fisted controls on participants, sponsors, spectators and any one else they can bully, but their power is waning.

    Just like the Soviet Union tried to control fax machines as their economy crumbled around them, the same thing is happening with the Olympics and other big ticket sports.

    Top level sports administrators are very good at currying favours from the corporate Bourbons and political princelings who love to spend other people’s money to build their own egos which will allow the facade to continue for a few more years.

    Eventually though the money will run out as shareholders question the value of billion dollar sponsorships coupled with executive gold passes to the VIP marquee and taxpayers will ask why governments have money to spend on stadiums or elite sports programs when their local school, hospital and police stations are being closed.

    History shows that threatened leaders tighten controls when they are threatened. We can expect the next couple of Olympics to have even more draconian rules than London’s.

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  • Eating the Old Man’s lunch

    Eating the Old Man’s lunch

    Optus today announced the purchase of restaurant review site Eatability for $6 million.

    Eatability is one of the services that’s destroyed the business models of both the phone directory business and that of newspapers.

    Thirty years ago the Sydney Morning Herald launched its Good Living section and it became the way people went found where the good places were to eat.

    Diners wanting to make a reservation at the hip eating places being reviewed in Good Living picked up the phone book.

    Now they do neither, they go to web sites like Eatabilty or Yelp where they get reviews, contact details and everything else they need about the venue.

    Which killed the advertising revenues that newspapers and phone directories depended upon.

    The sad thing is both the newspapers and Yellow Pages could have owned this space. Citysearch was setup by Fairfax to address the online market and it was sold to Telstra when the newspaper chain struggled to make it work.

    Citysearch today languishes neglected and nearly forgotten under the Sensis umbrella. Optus now owning Citysearch’s biggest local competitor which must bring a hollow laugh to those involved in the early days of Fairfax’s digital experiment.

    Whether Eatability thrives under Optus remains to be seen, but it illustrates just how incumbent strengths like telephone directories are being eroded in the online world.

    Old men have to start moving quickly if they don’t want upstarts eating their lunch.

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  • Connecting the data dots

    Connecting the data dots

    One of the connected world’s weaknesses is its fragmented as various silos of data appear in the different social and cloud services.

    Bringing those sources together in a way that’s useful and relevant is one big opportunity for entrepreneurs.

    Sydney company Roamz is one of the businesses looking at this opportunity by bringing together a user’s Facebook, Twitter and Foursquare feeds to figure what interesting stuff is happening locally.

    Roamz’s CEO and founder Jonathan Barouch has a vision to “cut out the noise” from social media services by “curating and cleaning the data”.

    The idea of curation isn’t new in the online world, this is probably one of the biggest challenges for everyone on the web as we find ourselves swamped with data. To date, much of the idea of ‘curation’ has been around news sources where services like Google News try to deliver relevant current affairs to the user’s desktop.

    Social media sites are particularly in need of curation, particularly given your friends in Nevada are much help when you’re looking for a good coffee shop in Melbourne.

    This is the problem Roamz seeks to solve and we’re seeing this with various other services, not least the social media platforms themselves as Facebook tries to extend its reach and Google attempts to integrate their local services with the Zagat restaurant review system and Google+.

    Some would dismiss these services as “first world problems”, after all who cares about twittering hipsters trying to find a single origin, fair trade soy latte in Broadmeadows?

    There’s a point in that view, although there is a much bigger problem for businesses in this fragmented data world in harnessing and validating various sources of market intelligence.

    For businesses that get this right, they’ll be able to target advertising and marketing much more effectively while being able being able to tap into what their customers think and want.

    It’s no accident therefore that one of Roamz’s major investors is consumer communications giant Salmat, who can deliver great value to their corporate customers through supplying this data and market intelligence.

    The next IT buzzphrase is “Big Data” where businesses deal with this flood of information that is swamping all of us, by being able to understand customers and their behaviour things become far more efficient and cost effective.

    Bringing data together and making sense of the results is the big challenge of our times, those who can solve the problem will be among the next generation of business leaders.

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  • You’re doing it wrong

    You’re doing it wrong

    Earlier this week Smartcompany released the results of their 2012 business technology survey. One of the things that stood out was less than 30% of businesses are happy with their online results.

    Almost certainly this is because most businesses diving into social media are doing it for marketing or advertising reasons – so they expect to make sales shortly after they start posting updates.

    While social media can be a good marketing tool, it’s almost always time intensive and often it doesn’t work at all.

    For most businesses social media is much more useful as a market intelligence tool or a communications channel.

    Talking to your customers and helping them with their problems is probably the thing social media does best.

    While it can be argued that good customer support is the best way to build a brand and market a business, that’s a major change in thinking for many organisations.

    If you think social media is all about marketing – or customer support isn’t about your business brand – then you’re doing it wrong.

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