Idea Hall Blog Do Social Media Endorsements Ring True?

10/13/09
Preserving the Power of Objectivity
Believe it or not, the most influential endorser in the market today is "you." Online marketing gives consumers a voice, the blogosphere provides a microphone and social media delivers the podium. Blogging and social media sites such as Facebook or Twitter have widespread reach, yet information can be unreliable when we don’t know the perspective of the author. Objectivity is called into play, and consumers may doubt whether an endorsement is an honest opinion or a paid advertisement.

For the first time in 30 years, the Federal Trade Commission is issuing new guidelines for endorsements and product reviews. The FTC is advocating greater online transparency as they try to preserve the value of peer endorsements.

The new rules take effect December 1, 2009 and require that:

• Bloggers reveal any connections or agreements with products they endorse
• Celebrity endorsers reveal their relationships when endorsing products on a blog or social network
• Endorsements that appear to be “word of mouth” but are actually sponsored comments may be penalized

The FTC is taking on quite a challenge in legislating objectivity in the social realm, and its attention will be heavily focused on advertisers. How can marketers embrace this accountability? Here are a few ideas:

• Use of full disclosure. Avoid endorsing a product through an anonymous Twitter account or posting links on message boards that masks your affiliation.
• Embrace public opinion and invest in your customers' feedback. Prominently placed links such as Share This, Tweet This, Facebook This, Email This, etc. tell your audience that their opinion matters.
• Listen! Take the feedback and regularly evaluate how it can improve your sales plan or business model.
• Respond to the feedback and continue the conversation.

Sharing tactics enable the public to disperse information and opinions across various social networks, and their use is sharply increasing. In an era where anyone can influence consumer behavior, qualifying the integrity of that voice is crucial. Marketers have a responsibility to act ethically and accurately when using online marketing tactics. Customer loyalty can be fickle.

What's Idea Hall's take on this phenomenon? Social media is a powerful marketing tool when used with care. The same medium that quickly spreads positive word of mouth can boomerang when endorsements are “questionable.” What’s at stake? Your sales, and your brand. We're encouraged by the FTC's efforts to promote full disclosure for product reviews and endorsements, though we think the effort begins at the client and the agency level.

Your thoughts?