Bloggers Beware of Big Brother

Many marketers have been increasing their budgets when it comes to social media and word-of-mouth marketing. In fact, marketers like Ford, Microsoft, and Pepsi spend billions on social media and word-of-mouth marketing. Additionally, PQ Media projects that marketers will spend $3.7 billion on word-of-mouth marketing in 2011. However, using well-known bloggers to boast about a brand or sending products to influencers to spread the good word could be scrutinized by the Federal Trade Commission (FTC) in the near future.

According to an article in Ad Age, the FTC is proposing that word-of-mouth marketers and bloggers, as well as people on social-media sites such as Facebook, be held liable for any false statements they make about a product they're promoting, along with the product's marketer. Roberta Jacobs-Meadway, a partner at Eckert Seamans Cherin & Mellott, a Pittsburgh law firm, said: "The FTC is ... putting out guidelines to make it clear to people who are involved in social media and viral marketing that the same rules apply in this context as they do in the more formal context of paid advertising and infomercials." There are no legal implications for social-media sites such as Facebook or marketer sites such as Amazon, where consumers often post product reviews. However, Ms. Jacobs-Meadway said, paid endorsers who post on those sites can be held liable if they do not identify themselves as such.

It is evident that it has taken awhile for rules and regulations to speed up to the realities that exist in 2009. Rich Cleland, assistant director of the FTC's advertising-practices division, said the commission is updating the guidelines to stay in step with evolving marketing practices. "The commission is attempting to update guidelines that are 30 years old so that they address current marketing techniques," he said, "and in particular to address the issue of whether or not the safe harbor that's currently allowed for 'result not typical'-type disclaimers is still warranted."

But will these rules and regulations be enforced in the near future? It turns out the FTC will review all public comments and concerns before the final vote. Organizations such as the American Association of Advertising Agencies, American Advertising Federation, and Personal Care Products Council have plenty of reservations. In its comment, the 4A's said while it and the American Advertising Federation want to ensure nondeceptive endorsements and testimonials, it "strongly urges the commission to reconsider the proposed, overly stringent amendments that will likely result in advertisers abandoning longstanding legitimate advertising techniques, such as consumer testimonials, and rejecting new media forms, such as blogs and viral marketing."

If the FTC passes the proposed plan, advertisers and agencies will be held responsible to understand the rules and inform their bloggers and promoters that they must comply. But could this actually be a catalyst in bringing a new array of problems that transpires when the government steps in, which may change the face of the advertising industry?

While many people fear the proposed plan because of Big Brother’s overarching presence, others feel that it will bring more credibility to word-of-mouth and social-media marketing. Jim Nail, chief marketing officer of TNS Media Intelligence and a WOMMA board member said "The thing that makes word-of-mouth marketing powerful is people believing they are getting truthful and honest opinions from real users. If people start disbelieving word-of-mouth marketing as much as they disbelieve advertising, we are in deep trouble."

The Rising Popularity of Twitter

Most of us are familiar with Twitter, which allows users to communicate via posts that go up to 140 characters at a time. This new trend of communicating has become extremely popular and it’s boldly going where no social networking site has gone before. Many people are finding this site useful to update friends and family about daily occurrences and celebrities are using it to communicate to their fan base about concert tours.

An article in the New York Post goes into extensive details about the various times and places that people are Twittering as well as the etiquette associated with posting. People have proposed marriage via Twitter, jurors have posted Tweets during trials and journalists have been sent to cover funerals in real time via Twitter. So where are people going to draw the line?

Anna Post, etiquette author and spokeswoman for the Emily Post Institute, is loath to pass judgment on what events are and are not OK to Twitter about, except in the case of trials ("We are citizens, there are duties, and it's not just about you") and probably death. (In September, the now-defunct Rocky Mountain News suffered massive public backlash after it sent a reporter to cover a 3-year-old's funeral in real time, via Twitter.) Otherwise, she says, it's situational. "There's nothing inherently wrong with Twittering [big events] as long as everyone's comfortable," she says. "I think the danger, though, is in how incredibly banal it is."

I can understand why celebrities would use Twitter as it a fast way to reach their fan base who are likely hungry for the behind-the-scenes scoop. Similarly, I can understand if someone is in the hospital waiting for the birth of their child or caring for a sick family member. It is an efficient use of someone’s time if they’re tied up at the hospital and can’t take numerous phone calls from family and friends asking about a status update. If family and friends are directed to Twitter or a blog, they can keep up with daily events and even respond so that their loved one knows they are reading. However, sending a reporter to cover a funeral via Twitter and jurors posting Tweets about trials and murder weapons is taking it too far.

Although Twitter is only 3-years-old, it is estimated to have between 4 and 5 million users, with 55 million unique visitors per month. As more people sign up for Twitter and see how easy it is to communicate with others, it is likely that the number will increase and the type of instances that people Tweet about will change. We’ve already seen how powerful Twitter has been with real world-breaking news such as the Bombay attacks, the earthquake in China and the Hudson River plane landing. All of these occurrences were first reported by citizens via Twitter. But what makes me wonder is whether people will realize that there are certain times when it’s just not appropriate to Tweet, or if any life event or a passing thought is game for the site. It will be interesting to see how corporations, judges, bloggers and everyday citizens feel about the site going forward.

The Digital Landscape in Italy

If you have ever visited Italy, it is likely you will agree that people are more relaxed and not connected to the digital world and their mobile devices 24/7/365. Italians break for siesta, visit cafés for Internet access and stop for a shot of espresso on their way home from work. As such, it is quite different from the fast-paced, multitasking American way of life, which consists of eating lunch at your desk, emailing and talking on the phone at the same time and working until the wee hours of the night. But who is complaining?

Studying abroad my junior year of college in Florence, Italy gave me a taste of living in a city that was serene. I remember feeling out of place and strange when stores, banks and the post office would close for siesta. But after a few weeks, I was completely adjusted and got used to taking it slow. Coming back to the United States was a different story.

My journey to Italy began in 2001, which seems like ages ago. Since then, a lot has changed especially in the digital realm. While I was there, it was a daily chore to go to the local Internet Café to send email to friends and family back in America. Needless to say, all we did was email and leave to tour the beautiful city. Visiting websites such as MySpace, Facebook and Twitter were not daily routes and unheard of at the time.

Although I miss Italy very much and promised myself and my fiancé that we would go back, I have often wondered what has changed in terms of their technology and acceptance of social networking. That being said, when I came across Kara Swisher’s blog entry on All Things Digital I was engaged with the story, especially since she discussed the digital trends and the popular conference “Tutto Cambio, Cambiano Tutto?” That roughly translates into “Everything changes, but should everything change?”

Kara indicated that Internet penetration is much lower in Italy then elsewhere in Europe and television still dominates most media. She attended the conference in Italy and said the following: “’We’re 2,000 years old’ is something you hear a lot from people as an explanation for approaching everything, from social networking to iPhones to anything interactive, with some wariness. While most people here note that they like Facebook, pronounced ‘FAY-sa BOO-ka,’ hardly anyone sees the point of Web 2.0’s trend du jour, Twitter (‘TWEE-tur’).” While few people have heard it, those that have don’t use it.

What surprises me the most is how fast Americans have embraced these websites and social applications and have made them part of their daily lives, while Italians are moving at a leisurely pace. Even though I mentioned earlier that the Italian lifestyle is much slower, it seems like they would want to at least keep up with popular social networking sites, especially when other countries in Europe have adopted them. I am always amused when I hear that Italian designers define the fashion trends and style guides for the fall and spring seaons, but when it comes to other aspects they lag far behind.

For more information, check out Kara’s interview with several Italians at the conference: