Plug Away:
Disclosure of material connections
in social media channels
David Kamerer, PhD, APR
Loyola University Chicago
F...
Organic content
or
commercial?
Disclosure of material connections
16 CFR Part 255
“Guides Concerning the Use of Endorsements and
Testimonials in Advertis...
Failure to disclose is not new
Payola
In-program selling
Product placements in film/TV
Ann Taylor
FTC: it is the
advertiser’s
responsibility to assure
disclosure, not the
blogger’s
Legacy Learning Systems
$5 million
sales
$250,000
fine
Reverb Communications memo:
Reverb employs a small team of interns who are focused on managing
online message boards, writ...
Online, ads don’t work
http://bit.ly/OzkFr1
Typical response rates
Targeted email 5.00%
Direct mail 3.00%
Rich media 0.14%
Banner ad 0.08%
The failure of outbound
tac...
How are blogs funded?
• No funding – hobby
• Banner ads
• Search ads (Google AdSense)
• Affiliate programs
• Pay per post
...
The advertiser’s view:
•No one looks at/clicks on banners
•Bloggers have negotiable standards
•It’s easy to purchase influ...
The blogger’s view:
•Not making much from ads
•Eager to monetize site
•Open for business
•Rationalization:
“I received X f...
Two inquiries:
1.Study of top style blogs
2.Examination of celebrity Twitter feeds
Method, style blog inquiry:
1.Sampling frame: top style blogs as curated by
Signature9.com
2.Only U.S. blogs included, N =...
Results: many revenue streams
Tracking software shows
ad relationships
Average of 14 tracking services on style blogs
•Analytics
•Share buttons
•Third-p...
Almost three-fourths of the sample
did not disclose in-post
Examples of in-post disclosures
Not quite a disclosure: c/o (“courtesy of”)
In-
post
Site
State-
ment
Influencers/Advertisers
• Always disclose, even if in doubt
• Only work with ethical influencers
• Also use a site stateme...
For more information:
http://davidkamerer.com
(search for “corruption”)
http://delicious.com/davidkamerer/disclosure
http:...
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
ICA presentation - disclosure of material connections in social media
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  • We know what a commercial looks like.
    We know what journalism is
    But what about everything else?
  • Adly stats – Minimum ad buy: $25,000. They have worked with 150 advertisers, sending out more than 24,000 tweets. About 1000 influencers work with adly. To participate as an influencers, you must have + 150,000 followers.
  • PaidPerTweet
  • ICA presentation - disclosure of material connections in social media

    1. 1. Plug Away: Disclosure of material connections in social media channels David Kamerer, PhD, APR Loyola University Chicago Follow me on Twitter @davidkamerer
    2. 2. Organic content or commercial?
    3. 3. Disclosure of material connections 16 CFR Part 255 “Guides Concerning the Use of Endorsements and Testimonials in Advertising” Resource: FTC “dot-com” disclosures guide http://1.usa.gov/cScCMo
    4. 4. Failure to disclose is not new Payola In-program selling Product placements in film/TV
    5. 5. Ann Taylor FTC: it is the advertiser’s responsibility to assure disclosure, not the blogger’s
    6. 6. Legacy Learning Systems $5 million sales $250,000 fine
    7. 7. Reverb Communications memo: Reverb employs a small team of interns who are focused on managing online message boards, writing influential game reviews, and keeping a gauge on the online communities. Reverb uses the interns as a sounding board to understand the new mediums where consumers are learning about products, hearing about hot new games and listen to the thoughts of our targeted audience. Reverb will use these interns on Developer Y products to post game reviews (written by Reverb staff members) ensuring the majority of the reviews will have the key messaging and talking points developed by the Reverb PR/marketing team.
    8. 8. Online, ads don’t work
    9. 9. http://bit.ly/OzkFr1
    10. 10. Typical response rates Targeted email 5.00% Direct mail 3.00% Rich media 0.14% Banner ad 0.08% The failure of outbound tactics Source: Ad Age, 2010
    11. 11. How are blogs funded? • No funding – hobby • Banner ads • Search ads (Google AdSense) • Affiliate programs • Pay per post • Free goods & services Rarely: ecommerce, memberships
    12. 12. The advertiser’s view: •No one looks at/clicks on banners •Bloggers have negotiable standards •It’s easy to purchase influence
    13. 13. The blogger’s view: •Not making much from ads •Eager to monetize site •Open for business •Rationalization: “I received X from Y” “But the opinions are my own”
    14. 14. Two inquiries: 1.Study of top style blogs 2.Examination of celebrity Twitter feeds
    15. 15. Method, style blog inquiry: 1.Sampling frame: top style blogs as curated by Signature9.com 2.Only U.S. blogs included, N = 68 3.Rubric: PageRank (scored 0-10) Link score (0-10) Unique IP links (0-15) Alexa rank (0-15) Twitter score (0-10) Facebook domain activity (0-15) Google blog links (0-15)
    16. 16. Results: many revenue streams
    17. 17. Tracking software shows ad relationships Average of 14 tracking services on style blogs •Analytics •Share buttons •Third-party ad networks (source: Ghostery plug-in) At left, tracking software from the blog LoveMaegan
    18. 18. Almost three-fourths of the sample did not disclose in-post
    19. 19. Examples of in-post disclosures
    20. 20. Not quite a disclosure: c/o (“courtesy of”) In- post Site State- ment
    21. 21. Influencers/Advertisers • Always disclose, even if in doubt • Only work with ethical influencers • Also use a site statement, linked on home page • Goal: to avoid consumer confusion • FTC dot-com disclosures http://1.usa.gov/cScCMo Consumers • Media literacy • Understand the ad-supported (free) web • Search engines are complicit
    22. 22. For more information: http://davidkamerer.com (search for “corruption”) http://delicious.com/davidkamerer/disclosure http://delicious.com/davidkamerer/corruption On Twitter: @davidkamerer Email: david@davidkamerer.com Thank you!

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