Paid Content: Brand Meets Blogger
New influencers like bloggers and web personalities are the new must-have for brands looking to strengthen their products in the marketplace. Word-of-mouth has come to the fore as one of the most successful ways to reach an audience, and companies are responding. This has led to the creation of a plugged-in, hyper-engaged breed of spokesperson who regularly plug products in multiple forms online media–blogs, videos, social networks, micro-blogs, etc. For their efforts, these spokespeople are compensated–economically, with products, or other opportunities.
This, perhaps, is the biggest difference between bloggers and journalists. A journalist cannot be rewarded in any way for his or her coverage, while many on the forefront of web 2.0 have worked to delineate best practices for web personalities who receive compensation (direct or indirect) for their product placement, these guidelines have not reached a consensus. The Federal Trade Commission (FTC) is moving to change this. Their new guidelines dictate that web personalities pitching these products are to be made liable if their claims or other content misrepresent the product or company they’re pitching.
Brian Solis, principal of FutureWorks, the award-winning PR and new media agency in Silicon Valley, wrote about the FTC’s vision for bloggers and web personalities at TechCrunch:
In a discussion with Mary Engle, the acting deputy director for the Bureau of Consumer Protection, she articulated to me, “It’s not about preventing citizen journalists from becoming citizen advertisers, that’s just not true. We’re acting to ensure that bloggers don’t create a bias in the consumer decision-making process. Consumers just need to know that what they’re reading is technically an advertisement.”
Whether the post is compensated with cash or with free product or rewards, the FTC views them equally. Engle observed, “The real test is whether or not the consumer’s impression or decision would change if they knew the post was sponsored.”
The FTC Guides advise that an advertisement employing a consumer endorsement on a central or key attribute of a product will be interpreted as representing that the endorser’s experience is representative of what consumers will generally achieve.
It’s about responsibility and credibility.
Solis believe that compensating bloggers and influencers directly or indirectly can’t but cloud their ability to be unbiased about the products they’re discussing, thereby risking their credibility and the trust of their audience.
I don’t necessarily agree. As I wrote in The Balance between Money and Credibility, I think it’s possible to endorse the brands that you believe in and maintain credibility and trust by being upfront and disclosing your relationships.
In that regard, Solis brings up important rebuttals:
If we examine Forrester’s case for sponsored conversations, we’re essentially fueling word of mouth by paying for social or topical authorities to share their views about our company or product brand in their domain. This is important. We’re talking about paying people to write about a company or product on their existing, personally-branded content platform associated with it’s already existing, captive audience. This theoretically sparks Webwide buzz that connects a brand to the community of would be customers who rely upon these personalities and voices in the both the blogosphere and statusphere to make informed decisions.
Seems simple enough, except two things are going to prevent this from effectively promoting the sponsoring brand over time — 1) disclosures read like warning signs; 2) Google is downgrading any blog or site that actively publishes paid content.
The matter of disclosures as warning signs is not unfounded. It is up to every blogger and influencer to word their disclosures so these are fair, but the association with a brand can serve to make them experts in terms of this brand’s products, which can be useful for consumers when seeking specific information. It is a blogger’s and influencer’s responsibility to be informed about the products they support. For a company, it is important to reach out to bloggers and influencers whose personal brands reflect the product they’re trying to place (and this ties in to an earlier post I wrote Pitching to Bloggers the Right Way.
Personally, I think the FTC guidelines will enable consumers to feel more secure about the reliability of the content they encounter and it will also help bloggers and influencers undertake paid conversations in a much more clear-cut manner that enables them to preserve their credibility and the trust that they have created with their respective audiences.
For those interested in the subject matter, Social Media Today will be hosting an Ethics of Blogging webinar on Thursday, September 24 at 10:00AM PT, which will discuss: transparency; web content as a marketing tool; online privacy; and compliance and legal obligations. For more information, visit their site.
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