A Social Promotions Primer: Legal and Marketing 101

+A SOCIAL PROMOTIONS PRIMER: LEGAL AND MARKETING 101 Ben Pickering | CEO - Strutta | @bpicks Linda Goldstein | Partner - Manatt, Phelps & Phillips

AGENDA•Overview of common promotion types•What type of promotion is right for you?•What you need to be aware of from a legal and compliance perspective•Tips for a successful promotion•Case studies

SWEEPSTAKESEASYTO ENTER WINNERS CHOSEN AT RANDOM

CONTEST PHOTO OPTIONS FOR WINNERS VIDEO VOTING BASED ON AUDIO & JUDGING ESSAY ROUNDS SKILL

CHOOSING YOUR PROMOTION TYPEWhat are your primary goals? Sweepstakes Contest• Leads and data• Fan Engagement• Crowd Sourced Content

CHOOSING YOUR PROMOTION TYPE

PLANNING YOUR PROMOTIONDefine realistic goalsDesign a promotion that aligns withyour goals and audienceKnow the legalities or work with apartner who does!

BASICS OF PROMOTION LAWLottery: Prohibited under federal and allstate laws.Defined as a promotion containing allthree elements:• Prize Anything of tangible value• Chance Any random selection of winner/absence of skill• Consideration Purchase Payment Substantial effort More of a theoretical than practical risk Is a consideration with UGC contests

SWEEPSTAKES VS CONTESTSweepstakes• Chance based promotion• Consideration must be eliminatedContests• Skill based promotion• Consideration may be present if bona fide skill is present and chance has been eliminated Note: Some states prohibit consideration even for skill contests

SWEEPSTAKES - ELIMINATING CONSIDERATIONThe Alternate Method of Entry (AMOE)• Must itself be a “free” mechanism• Must provide same opportunity to win as those who pay to play Same deadline dates Equal number of chances to win Equal odds - No separate prize pool Universally available

SOCIAL MEDIA SWEEPSTAKESMost entry requirements do notconstitute consideration• Liking a page• Opening a Facebook or Twitter account• Tweeting a messageExceptions:• Blogging about sponsor’s product• Checking into a place If data charges apply, charges are “consideration”

DO ENTRY REQUIREMENTS = CONSIDERATIONFactors to consider: • What or how much is required to open an account • How much time and effort is required • Winner based on most tweets vs. tweet = sweeps entry • Is purchase of product inherently required Blogging about sponsor’s productMOST ENTRY REQUIREMENTS CARRY LOW RISK OFCHALLENGE

FTC’S TESTIMONIAL AND ENDORSEMENT GUIDELINESSocial media sweepstakes may raisecompliance issuesTweets and blogs can be “sponsored”advertisingSponsor connection must be disclosed Include sponsor # or similar disclosure on blogs Include disclosure requirement in official rules

UNIQUE ADMINISTRATIVE ISSUESThe Twitter disclosure challenge 140 character limit makes disclosure of any material terms, rules or privacy policy challengingRisk Mitigation Reference official rules/URL Consider use of Tiny URL or cmp.ly Include abbreviated rules/link to complete rules on Twitter page Include complete rules online Tweet abbreviated rules in several messages

UGC CONTESTSIs it a game of skill or chance? Public voting may negate element of skill There must be objective criteria Judges must be qualified to apply the criteriaDoes it matter? Does not affect legality unless consideration is present May affect registration and bondingFirst step: Determine if consideration ispresent

IS CONSIDERATION PRESENT?Factors to consider: • How much effort is involved Some UGC promotions require “substantial” effort • Will out of pocket costs be incurred Incidental consideration • Is purchase of sponsor’s product requiredTHE GREATER THE POSSIBILITY THAT CONSIDERATIONIS PRESENT, THE MORE IMPORTANT IT IS TO PRESERVESKILL LEVEL

PUBLIC JUDGING CRITERIALack of objective criteria Popularity contestAbility of public to apply criteria

MAINTAINING SKILL LEVELEstablish objective criteria rather thanthumbs up/downEstablish criteria public can apply Audience appeal, humor, entertainment valueLimit impact of public judging People’s choice award Percentage of score Factor to be considered

MAINTAINING SKILL LEVEL (CONT.)Split judging Also effective in reducing brand risksAvoid ballot stuffingProhibit automated entriesInclude strong disclaimersEstablish scoring system based onratings rather than cumulativeIf based on # of views, rotate entries

IP CONTENT ISSUESBrands face potential liability forcontent of UGC submissions Copyright Trademark Defamation Privacy / Publicity False product claims

IP RISK MITIGATIONTry to take advantage of available safeharborsDo not base the contest on concepts thatare likely to induce infringementDo not participate in the creation of thecontent

FACEBOOK PROMOTIONS GUIDELINESDon’t•Administer a promotion directly on your Page or use Facebook features as an entry or voting mechanism Cannot be automatically entered for Liking, posting a photo or comment Cannot use a Like button for votingDo•Use an app - Strutta and Wildfire are two Facebook Preferred Developers You can require a user to Like your page or check-in to a location provided the promotion is administered through an app• Be sure your promotion includes the following: a. A complete release of Facebook by each entrant or participant. b. Acknowledgment that the promotion is in no way sponsored, endorsed or administered by, or associated with, Facebook. c. Disclosure that the participant is providing information to (disclose recipient(s) of information) and not to Facebook.

TIPS FOR RUNNING YOUR PROMOTIONPlan Ahead - One of the biggest reasons promotions fail isdue to lack of planning. Don’t fall victim to the “if you buildit they will come” fallacy.Don’t Over-Complicate – Favor execution over concept - i.e.,a concise premise, clear call to action, and accessible UI willoutperform “clever but complex.”Partner Up – Partners/sponsors can expand the reach ofyour promotion and provide additional marketing channels.They can also help increase the prize value, making it moreattractive to entrants.

RESULTS & ROIExpedia Cruiseship Centers

RESULTS & ROITourism Newfoundland 900,000 ENTRIES IN 24 HOURS CONTEST EMAIL HAD 42% CLICK-THRU RATE GENERATED TV, RADIO & PRINT PUBLICITY

RESULTS & ROIJohnson’s Baby OVER 25,000 PHOTOS SUBMITTED TRIPLED LIKES BUILT AUDIENCE OF 100,000+ FOR ONGOING ENGAGEMENT

RESULTS & ROIAriat International

RESULTS & ROIVancouver Airport (YVR)

THANK YOU!Ben Pickering | CEO - Strutta | @bpicks Linda Goldstein | Partner - Manatt, Phelps & Phillips

A Social Promotions Primer: Legal and Marketing 101

by Word of Mouth Marketing Association on Dec 09, 2011

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A Social Promotions Primer: Legal and Marketing 101 — Presentation Transcript