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Webinar on corruption and commercialization online

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Webinar slides presented through PRSA on May 16, 2013, by David Kamerer, PhD

Webinar slides presented through PRSA on May 16, 2013, by David Kamerer, PhD

Published in: Business, Technology
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  • But online communication may be losing its effectiveness
  • 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.
  • MyLikes
  • PaidPerTweet
  • PaidPerTweet
  • Scott Van Duzer, Big Apple Pizza & Pasta, Fort Pierce, Florida
  • A strategic lawsuit against public participation (SLAPP) is a lawsuit that is intended to censor, intimidate, and silence critics by burdening them with the cost of a legal defense until they abandon their criticism or opposition
  • A strategic lawsuit against public participation (SLAPP) is a lawsuit that is intended to censor, intimidate, and silence critics by burdening them with the cost of a legal defense until they abandon their criticism or opposition
  • Transcript

    • 1. Corruption of digital discourse:what you need to know,why you should careDavid Kamerer, PhD, APRLoyola University ChicagoFollow me on Twitter @davidkamerer
    • 2. The online worldJournalismBlogsSocial mediaOnline reviewsAction plan
    • 3. CommunicationConversationsInfluencehave moved online …As communicators, online is where we workand live
    • 4. CC/flickr.com/Jeff_Werner
    • 5. The Attention Crash“We are reaching a point where the number of inputswe have as individuals is beginning to exceed whatwe are capable as humans of managing. Thedemands for our attention are becoming so great, andthe problem so widespread, that it will cause peopleto crash and curtail these drains. Human attentiondoes not obey Moore’s Law.”- Steve Rubel, Edelman Digital
    • 6. Decline of trust• Unemployment• Globalization• Poor economy• Housing crisis• Banking crisis• War
    • 7. Trust: infrastructure issues:•Malware•Phishing•Hacking•Insecure ecommerce•Identity theft•Device tracking•Fraudulent banner ad exchanges
    • 8. Trust – AC Nielsen study
    • 9. Edelman Trust Barometer• the rise of a “person like yourself (up 22% from2004 to 2012)• decline in trust – CEOs (-12%) and governmentofficials (-14%)
    • 10. Edelman model: media cloverleaf
    • 11. The online worldJournalismBlogsSocial mediaOnline reviewsAction plan
    • 12. What’s wrong with journalism?• Continuous deadlines• Harried reporters• Multimedia/social media reporting• Anonymous comments online• Iterative journalismRESULT: less trust in journalism
    • 13. Social media sources, HARO
    • 14. Gallup survey, Fall 2012:
    • 15. Decline of journalism• $1 in new digital ad revenue for every $25 lost inprint ads•http://bit.ly/R9TWPg• One-third to half of all banner ads – never seen•http://bit.ly/TbOomC• Other financial models – limited success
    • 16. Pageviewsrule allGoodbye, zoning board;Hello, Kardashians
    • 17. http://bit.ly/OzkFr1
    • 18. Typical response ratesTargeted email 5.00%Direct mail 3.00%Rich media 0.14%Banner ad 0.08%The failure of outboundtacticsSource: Ad Age, 2010
    • 19. Journalism• Financial model seriously compromised• We’ve never needed good journalism more
    • 20. The online worldJournalismBlogsSocial mediaOnline reviewsAction plan
    • 21. Modal qualities of social media• Everyone can publish• A variety of business models• Google organizes all• Trust/authenticity that comes from“someone like myself”
    • 22. Blogs• The rise of hidden influencers• Focused, long-tail content• Often “journalistic”
    • 23. How are blogs funded?• No funding – hobby• Banner ads• Pay per post• Affiliate program• Free goods & services
    • 24. Results: many revenue streams
    • 25. Tracking software showsad relationshipsAverage of 14 tracking services on style blogs•Analytics•Share buttons•Third-party ad networks(source: Ghostery plug-in)At left, tracking software fromthe blog LoveMaegan
    • 26. Disclosure of material connections16 CFR Part 255“Guides Concerning the Use of Endorsements andTestimonials in Advertising”Dec. 1, 2009•Restrictions on describing “typical” results in advertising•Guidelines for celebrity product endorsers•Guidelines for disclosing material connections betweenadvertisers and endorsers
    • 27. Examples of in-post disclosures
    • 28. Not quite a disclosure: c/o (“courtesy of”)In-postSiteState-ment
    • 29. Ann TaylorFTC: it is theadvertiser’sresponsibility to assuredisclosure, not theblogger’s
    • 30. Legacy Learning Systems$5 millionsales$250,000fine
    • 31. Almost three-fourths of the sampledid not disclose in-post
    • 32. The online worldJournalismBlogsSocial mediaOnline reviewsAction plan
    • 33. 50 Cent+ 290% in one day$8.7 million
    • 34. Other platforms for paid influence:•MyLikes.com•SponsoredTweets.com•Pay4Tweet.com•Netflix affiliate program•Amazon Affiliates
    • 35. Other consumer referral programs• The Fancy• Pose• Referly
    • 36. The online worldJournalismBlogsSocial MediaOnline ReviewsAction plan
    • 37. Reviews•an important source of (free) content•are distributed across the web•frequently anonymous or pseudonymous
    • 38. Scope of reviews• 76% of consumers use online reviews regularly or occasionally• 72% trust online reviews as much as personal recommendations• 58% trust a business with positive reviews• 52% more likely to use a business with positive reviewsUS Alexa ranks:1 Google, 5 Amazon, 57 Yelp, 63 Target, 84 Bestbuy,114 TripAdvisor, 119 Expedia, 367 Cars.com,600 Angieslisthttp://selnd.com/ScqESZ
    • 39. Reverb Communications memo:Reverb employs a small team of interns who are focused on managingonline message boards, writing influential game reviews, and keepinga gauge on the online communities. Reverb uses the interns as asounding board to understand the new mediums where consumers arelearning about products, hearing about hot new games and listen tothe thoughts of our targeted audience. Reverb will use these internson Developer Y products to post game reviews (written by Reverbstaff members) ensuring the majority of the reviews will have the keymessaging and talking points developed by the Reverb PR/marketingteam.
    • 40. Reverb Communications memo:Internal User Reviews Process:• Internal “User Reviews”• Pre-written by in house writers• Positivereviews – not over the top – but endorsing the game as a goodproduct• Age ranges+ 12 – 18+ 19 – 25+ 26 – 34+ 35 – 45+ 46+*Written from the angle of each age group including key words thatresonate with each audience* Reviews begin to go live on day oflaunch on the iPhone storefront
    • 41. Reverb Communications
    • 42. Yelp•#57 website in US• behind Instagram, GoDaddy• ahead of Target, Groupon, UPS, Hulu• 50 million unique visitors/month• 18 million + reviews
    • 43. Economic value of Yelp reviewsUC-Berkeley study: a half-star difference in Yelp reviews canmean a 30-49 percent likelihood that a restaurant will sell outin an evening.Online reviews “play an increasingly important role in howconsumers judge the quality of goods and services.”http://bit.ly/T2wFUJ
    • 44. Yelp reviews
    • 45. Yelp reviews
    • 46. Yelp “filtered” reviews
    • 47. Owner’s response:• No record of “Justin G”• Rejected offer to buy an ad• Justin G did not respond to query“I can live with what he says, eventhough I believe it’s unjust. Butallow the good ones to go on, too.”
    • 48. Blowback against Yelp•Class action lawsuit (thrown out)•Facebook pagesYelp is a FraudWe hate Yelp•Websiteyelp-sucks.com• FTC complaints (almost 1,000) of “extortion”
    • 49. Amazon - Cornell study• 85% of Vine reviewers have been approached byan author/agent/publisher.• “… large numbers of reviews by the higher-rankedreviewers are for books they have been given freeby publishers, authors, or agents.”• Bad reviews – leave it up to the author?• Alexa: #5 in US, #10 in world
    • 50. Amazon.co.uk• 47 5-star reviews in first week.• Of the 47 reviewers, only six had ever• written a review before• Husband Sir Paul Ruddock net worthestimated to be $450 million• Current sales rank #99,085 in Books
    • 51. VIPERTEK Kindle case
    • 52. http://nyti.ms/R5QDK5
    • 53. TripAdvisor•More than 60 million reviews•40 reviews posted/minute•Hotel experience less tangiblehttp://tripadvisorwatch.wordpress.com/
    • 54. The case of doctors• Sue patients who write negative reviews for libel• SLAPP suitsReputation.comDoctorScorecard.comAngieslist.com
    • 55. The online worldJournalismBlogsSocial MediaOnline ReviewsAction plan
    • 56. High performanceHigh performance products, servicesHigh performance communicationBecome a transparent company
    • 57. Listen to the chatterListening tools/RSSIdentify brand champions/connect and nurtureComplaint? Improve your performanceSome complaints fall below the noise floorYou can’t please everyone.
    • 58. Use your owned mediaYour message, your frame, your branding“Every company is a media company”
    • 59. Social media
    • 60. Social media• Prepare to play defense• Rise of “native ad formats”sponsored Tweetsponsored story• Facebook paid posts• Commercialization is transforming social media
    • 61. Disclosure• 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
    • 62. PRSA Code of EthicsPRSA’s Code of Ethics has a provision entitled “Disclosure ofInformation,” based upon the principle is that “opencommunication fosters informed decision making in ademocratic society.” The intent is “to build trust with thepublic by revealing all information needed for responsibledecision making.”The code states that a member shall:Be honest and accurate in all communications.Act promptly to correct erroneous communications for whichthe member is responsible.Investigate the truthfulness and accuracy of informationreleased on behalf of those represented.Reveal the sponsors for causes and interests represented.Disclose financial interest (such as stock ownership) in aclient’s organization.Avoid deceptive practices.
    • 63. Microchannels: Twitter, Facebook, SMSWhat about a platform like Twitter? How can I make a disclosure when my messageis limited to 140 characters?The FTC isn’t mandating the specific wording of disclosures. However, the samegeneral principle – that people have the information they need to evaluate sponsoredstatements – applies across the board, regardless of the advertising medium. Ahashtag like “#paid ad” uses only 8 characters. Shorter hashtags – like “#paid” and“#ad” – also might be effective.#paid#ad#client#sponsored
    • 64. ReviewsEmbrace the opportunity to listenClaim your spaces:YelpGoogle PlacesBing Business PortalFoursquareVerticals/hyperlocalsUse SEO to make your website more visible
    • 65. Review food chain:Top – independent professionals(Consumer Reports, journalists)Good first steps –(real names, must be customer)Worst –(anonymous)
    • 66. Whither journalism?Media, news literacyJournalism may enjoy resurgenceDirect pay model
    • 67. The tragedy of the commons
    • 68. For more information:http://davidkamerer.com(search for “corruption”)http://delicious.com/davidkamerer/disclosurehttp://delicious.com/davidkamerer/corruptionOn Twitter:@davidkamererEmail:david@davidkamerer.comThank you for listening to this webinar!

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