Chasing away the astroturfers

Recent court and industry regulator rulings are good news for honest businesses using social media.

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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Verified Jerks

Anonymity is the problem on the Internet, accountability is.

When you work in customer service you quickly learn that some people are just rude jerks. Depending on how bad a day you have it could be 2, 5 or 10% of the population.

For these people the Internet has been a paradise with almost anonymous forums and newsgroups allowing them to be rude and obnoxious with little risk of being held accountable for their spiteful behaviour.

One of the hopes of social media services was that forcing people into using accounts tied to their real identities would impose some self discipline among these trolls and haters,

Sadly The argument that verified identities would stop people being irresponsible is wrong.

The sad story of seemingly mature people insulting and wanting to beat up a five year old participant on a reality TV show illustrates how manners, good taste and style are beyond some people.

It’s depressing, but unsurprising that this demographic can’t figure out that ‘reality’ TV shows are anything but real. The programs are carefully edited to suit the dramatic narrative of the producers with some of the participants being portrayed as villains and others as heroes.

The little girl in question could be in a spoilt little brat, but you’d want to be careful making that judgement from what you see on TV.

Many would put the spiteful behaviour of the Facebook commentors down to being another example of social media destroying our society, but this behaviour pre-dates the web.

In the 1990s we saw a similar wave of insults aimed at President Clinton’s then teenage daughter Chelsea. In many ways it was far worse in what we are seeing today in that those encouraging that behavior were the leaders of political parties and their ideological fellow travellers in the media.

The abuse of Chelsea Clinton marked the rapid decline of standards in politics that leaves many of us now sickened by the behaviour of all parties – and that of the media that treats their shenanigans seriously.

Notable about the raucous political partisanship is that most participant are happy, even proud, to be named as they debase the institutions they’ve been elected to represent.

The reason is they aren’t accountable, they know most of us are rusted on voters and the few that aren’t can be conned long enough by expensive advertising campaigns to get them elected.

Should they not get elected, they’ll be welcomed into the arms of their corporatist friends who will find them a nice sinecure on a board, committee or think tank.

The real reason people act like jerks is because they think they aren’t accountable – the politicians know they aren’t and most Facebook users figure the odds are in their favour that they’ll never be held to account for their boorish behaviour.

Anonymity is the reason for bad manners on the net, accountability is. While our society doesn’t make people accountable for cruel, rude or corrupt behaviour then these people will thrive. With or without the internet.

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Australia – the Noah’s Ark of business

Cosy duopolies leave the Australian business community exposed to a changing world.

During a week of big business news, the buyout of another boutique brewery by a big corporation was barely noticed, but Lion Nathan’s takeover of the Little Creatures brewery illustrates the duopoly problem that is crippling Australian business.

A few days after that deal was announced, rumours that Business Spectator – which the above link takes you to – would be taken over by News Limited started circulating. These turned out to be true.

In both cases, existing duopoly players bought out small competitors, a process that’s been going on since Australia decided industry duopolies were necessary to protect the nation’s managerial classes, and these takeovers kill genuine innovation and stymie new thinking.

For those duopolies the definition of success is grabbing a few percent of market share off each other while using their market powers to screw down supplier costs.

A good of example of this is the retail duopoly, the farmers and producers get screwed while the supermarket chains engage in price wars driven by truly awful advertising campaigns.

Un-imaginative, un-original and plain un-inspiring. Any smart young kid wanting to get ahead in the retail industries knows they have to look overseas for job opportunities or inspiration.

Therein lies the real problem with Australia’s duopoly business culture – it triggers a brain drain as comfortable managements block any innovative new thinking as being too hard or just unnecessary.

In the media duopoly, telecoms analyst Paul Budde illustrated the problem in his account on trying to convince Fairfax of where the media industry was heading in a connected economy.

Fairfax’s management didn’t get it and didn’t care – today they still don’t get but they care deeply as their business model crumbles.

It’s not just future managers that are looking overseas for opportunity, the customers are well.

The duopoly model that evolved in Australia over the last thirty years depended upon the tyranny of distance to act as an effective trade wall. The Internet has demolished that wall for most industries.

Almost every Australian duopoly is living on borrowed time. If, like the proprietors of Business Spectator or Little Creatures, your business plan relies on selling out to a local duopolist then you’d better move quick.

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Looking at the wrong curve

Times have changed, have we?

“We don’t understand it, there’s a property shortage but prices are going down,” bleats the property expert in a recent interview.

Property booms are always excused with claims of “shortages”. The US, Ireland and the UK in recent years property markets all collapsed despite business and political leaders claiming there was a “property shortage”.

The shortage meme happens because the property spruikers, economists and finance writers focus on the wrong curve – they look at the supply curve and assume prices are going up because there isn’t enough property to go around.

What drives speculative booms is easy credit – demand driven by access to money drives speculation, not supply shortages.

Australia’s long term property boom which started in the late 1960s and went onto steroids in the late 1990s has been driven by access to credit. Banks were prepared to lend to property buyers, who were increasingly speculators, and government policies favoured those speculating on property over investing or building businesses.

The crisis of 2008 was the end of the easy credit era and the Australian property speculation boom is over. For the policy makers, politicians and economists the basis of the 1980s corporatist ideology is crumbling around them.

No ideologue lets go of their beliefs easily – that’s why Western governments who bought into the corporatist worldview are pumping trillions of dollars into supporting zombie banks and releasing constant stimulus packages to prop up the property market.

Like the communists of the 1970s, today’s corporatists are looking at choosing the statistics that suit their ideological views.

To support their beliefs they look at the wrong curve and then wonder why the world isn’t working as they thought it would.

Times have changed. Have you?

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ABC Nightlife Computers: The politicians on your homepage

How politicians are using the web and social media to push their message

Politicians around the world have discovered social media and the web. Australia’s political parties are gearing up to copy Barak Obama’s 2008 online campaigns.

Paul, Tony Delroy and Jeff Jarvis – Associate Professor and Director of the Tow-Knight Center for Entrepreneurial Journalism at the City University of New York and the author of “Public Parts: How sharing in the digital age improves the way we work and live discussed how politicians are using social media to get into your inbox.

The program is available from the ABC Nightlife website. If you’d still like to make comments or ask questions, feel free to have your say below.

To show what politicians are doing with online media, here are some examples from the Obama 2008 US Presidential campaign.

  • The Art of The Possible – An overview of the Obama – Biden 2008 campaign that defined modern digital political campaigns.
  • One of the most interesting phenomenons in the 2008 Obama campaign was The Great Schlep (language warning). Can you imagine a campaign like this in Australia?
  • Blue State Digital tools were developed for the campaign. These are now being used in Australia.

Some of the topics we looked at include;

  • Australian politicians don’t seem to have used the web very well. Why is that?
  • What are the ways overseas politicians using social media?
  • How do these integrate with the political parties’ existing databases?
  • Does this fit into the term Big Data we’re hearing about businesses?
  • Doesn’t this all create opportunities for false identities and campaigns?
  • Can you keep the parties off your computer?

We’d love to hear your views so join the conversation with your on-air questions, ideas or comments; phone in on the night on 1300 800 222 within Australia or +61 2 8333 1000 from outside Australia.

Tune in on your local ABC radio station or listen online at www.abc.net.au/nightlife.

You can SMS Nightlife’s talkback on 19922702, or through twitter to @paulwallbank using the #abcnightlife hashtag or visit the Nightlife Facebook page.

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Could Australia follow the Greek path?

Is Australia really different from Greece?

Business Spectator’s Robert Gottliebsen today describes how Australia has caught the Greek disease of low productivity and an overvalued currency.

This is interesting as just last week Robert was bleating on behalf of Australia’s middle class welfare state.

Australia’s productivity has stagnated over the last 15 years, but unlike Greece the ten years before that was a period of massive reform to both employment practices and government spending.

The structure of the Australian economy is very different, not least in its openness, to that of Greece.

What’s more Australia has a floating currency which will eventually correct itself unlike the Euro that Greece finds itself trapped in.

That’s not to say Australians won’t be hurt when that currency correction happens. The failure of the nation’s political, business and media elites in failing to recognise and plan for this is an indictment on all of them – including Robert Gottliebsen.

Australia’s real similarity with Greece is the entitlement culture that both nations have developed.

Over those last 15 years of poor productivity growth, Australia has seen a massive explosion of middle class welfare under the Howard Liberal government which has been institutionalised by the subsequent Rudd and Gillard Labor governments.

Today middle class Australians believe they have a right to generous government benefits subsidising their superannuation, school fees and self funded retirements.

For all the sneering of Australian triumphalists about Greek hairdressers getting lavish government benefits, Australia isn’t far behind Greece in believing these entitlements are a birthright.

A middle class entitlement culture is the real similarity between Australia and Greece. It’s unsustainable in every country that harbours these illusions.

Unlike Greece, Australia doesn’t have sugar daddies in Brussels, Paris and Berlin desperate to prop up the illusion of the European Union. Australia is own its own when the consequences of magic pudding economics become apparent.

Australia’s day of reckoning may arrive much quicker than that of Greece. Then we’ll see the test of how Australians and their politicians are different from our Greek friends.

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ANZAC Day

Remembering the the real bravery on a day of remembrance.

It’s ANZAC Day in Australia where the anniversary of the World War One landings in Gallipoli marks the first national action of the then new nation.

At its heart, ANZAC Day remembers sacrifice and bravery. The men and women who volunteered for the Great War and all those that have followed over the last hundred years were prepared to sacrifice relationships, safe careers and their lives to protect the King or Country from the threats of the Kaiser, Hitler, Japan, Communism or Terrorism.

We should remember though that those politicians saying fine words today and posing for photo opportunities at the landing beaches are the much the same people who started an unnecessary war in 1914 and many of those wars since.

Compare the words of Billy Hughes supporting Australian conscription in 1915 and the words of John Howard or Julia Gillard.

Stripped of spin doctors’ dressing and the words of today’s politicians are the same.  Only the empire has changed.

Today’s politicians know of concepts like sacrifice, patriotism and bravery, exploiting them can prove handy at election time.

Luckily for most of them their political and business careers rarely call for such qualities.

Hopefully our children won’t find themselves in the trenches  – or fall out shelters – to meet the short term gains of an Obama, Cameron or Gillard and their corporate friends.

The real lesson of ANZAC Day, Veterans Day and all the other national days of remembrance around the world for those every nation has lost in battle is that war is the final act and represents a failure by the Kings, Presidents and Prime Ministers who choose to lead us.

They shall not grow old, as we that are left grow old:
Age shall not weary them, nor the years condemn.
At the going down of the sun and in the morning,
We will remember them.

Lest We Forget

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