Alliance Blog Reviews

Tweets appear to be a pretty powerful 140 characters in some areas these days. In fact, based on this story there may be a whole new slice of the legal industry that can be created. Imagine the TV ad at 2 am “Has someone tweeted something about you that isn’t true? Have you suffered damage to your life in general because of a Twitter user with a mean streak? The Law Offices of Twit, Tweet and Twote can help you get your good name back one character at a time.” I just got a shiver up my spine just thinking about that as reality but in this new world order you never know. I bring this up because it appears that some people are not taking tweets lying down and taking legal action regarding comments. This is not the same as the imitator accounts suits that cropped up last year. This one (unfortunately) involves Kim Kardashian and a diet doctor (I am going to let you insert your own comments here because I don’t want to get sued but it’s so tempting). Media Post reports The doctor behind the Cookie Diet has sued celebrity Kim Kardashian for allegedly defaming him in on Twitter. The reality TV star allegedly tweeted in October that Dr. Sanford Siegal was “falsely promoting” that she was on the cookie diet. “Not true! I would never do this unhealthy diet! I do QuickTrim!,” she allegedly said via Twitter. “If this Dr. Siegal is lying about me being on this diet, what else are they lying about? Not cool!” In a lawsuit filed last week in state court in Florida, Siegal alleges that these statements are false and defamatory. The diet doctor also alleges that Kardashian — who reportedly earns $10,000 per tweet as an endorser — was on QuickTrim’s payroll at the time. This dust up occurred when the doctor linked to an article about his diet that claimed Ms. Kardashian was using his diet. A cease and desist ensued and the doctor took the link down. Here’s where the ‘pay per tweet’ issue takes center stage in light of recent FCC rules that have gone into effect. Regardless of whether Siegal can prove libel, the allegations in the case highlight some of the issues the Federal Trade Commission aimed to address with its new blogger rules. The FTC’s new guides, which took effect Dec. 1 (after the alleged Kardashian tweets), state that bloggers should disclose all material connections between themselves and companies whose products they write about. Kardashian allegedly touted QuickTrim while disparaging the Cookie Diet without disclosing that QuickTrim was paying her, according to Siegal’s lawsuit. So what’s the law here? You have Kardashian allegedly making money on a tweet but not making note of it. Do the new disclosure rules apply to ‘micro-bloggers’ as well as bloggers? Was the doctor legally responsible for linking to a third party article that was believed to be untrue? Apparently there is no clarity around this because different government agencies may see each situation differently. Some government agencies might view that link as an endorsement of the article’s content, said Eric Goldman, director of the High Tech Law Center at Santa Clara. In late 2008, the Securities and Exchange Commission said in proposed new guidance that companies could be liable for fraud if they link to material created by other publishers that contains false information — even though the federal Communications Decency Act says sites are immune from liability for material created by third parties. Despite the SEC guidance, Goldman says it’s not at all clear that either courts or government agencies would view the links to news articles on CookieDiet.com as problematic. “We don’t know the answer to the simple question: Are you endorsing content by linking to it?” So who will win on this one? We may never know. The laws and more importantly their enforcement are so new there is going to be some rough sledding ahead for some social media folks. These matters of law will take time to develop like all other Internet law has. With the economy still stumbling along and the litigious nature of our current society many might start looking for social media opportunities to hit the legal judgment lottery. As a result there may be a run on these kinds of things. While it will be interesting to watch this may serve as a cautionary event for many in the new world order of the blogosphere and micro-blogsphere alike. Or it may turn out to be a non-event. Your take?

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Social Media Lawsuits: Another 2010 Trend?

Deloitte’s 2009 State of the Media Democracy report was released today. Unsurprisingly, it reports that TV has become more popular in the struggling economy (beating out other forms of entertainment). But the big news might be two of the “lesser” findings—about online recommendations and the mobile Internet. Online recommendations are becoming increasingly influential, especially compared with online advertising. Online advertising doesn’t stack up against its offline counterparts—83% of those surveyed cited TV advertising as having an impact on their buying decisions, but less than half mentioned online advertising among their top three. Even clicking through to another site has dropped from 72% to 59% over the last three years. (Only half would click more on more targeted ads, down from two-thirds last go round.) Online recommendations and reviews, on the other hand, are on the way up: Over half of all U.S. consumers and 69 percent of Millenials believe that online customer reviews and ratings influence their buying decisions more than any other type of online advertising, and 51 percent have purchased products based on an online recommendation. In fact, 24 percent of U.S. consumers would like to have an online service that recommends a product based on other consumers’ preferences. Meanwhile, the mobile Internet is making great strides in separating the Internet from the perception of a desktop. Of those surveyed, a third used their phone as “an entertainment device” and nearly half (47%) of smart phone owners say their phone is one of their three “most valuable” media/entertainment products (up from 20% last year). 48% of those surveyed have data plans, and nearly all of them (88%) are using their phones to access the Internet. (The rest are paying too much .) Shopping is already making headway on the mobile Internet—15% have purchased something on their phones. Also popular: texting, online search, downloading apps and online GPS. Clearly, both of these findings show us how the Internet is spreading not only in influence but in accessibility. What do you think? How can better you use online recommendations to your or your clients’ advantages? Are you ready for the mobile Internet?

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Online Recommendations > Advertising

Last week I talked a bit about experience marketing. At the end of the post I linked to a video of a talk given by economist Joseph Pine . In Pine’s talk he briefly articulates a transformation from an agrarian economy to what we now know as an “experience economy”. Pine tells us that goods and services have become commodities, and experiences have become the growing consumer demand. It’s the same reason that so many people will pay $4.00 for a cup of coffee – the experience of connecting with a trusted brand is important to them. Pine then tells us that not all experiences are equally sought after, the dominant experience within the consumer conscious is authenticity. …authenticity is therefore becoming the new consumer sensibility — the buying criteria by which consumers are choosing who are they going to buy from, and what they’re going to buy. Authenticity is responsible for fueling the independent music and art industries. It’s the reason that original concepts , that would have been written off as foolish 10 years ago, are changing the way we communicate. And it’s the same reason why Google has grown in popularity over its competitors. But Pine then fills us in on a little secret: There’s no such thing as true authenticity. This is because every experience is created by external stimuli and thus our experiences are only as authentic as they are rendered to be. In the end it is the illusion of authenticity that drives consumers to engage. To quote Rae Hoffman , “Good spam never looks like spam.” As marketers and business owners it is our job to render authenticity. If we fail at doing so, we will lose the consumer’s trust and risk being “fake”! OK, so what’s your point Joe? Last week, Google announced a gamut of changes that they will start to implement. The most significant of these changes is default personalized search . Around the same time, Google’s CEO made some pretty alarming comments regarding privacy concerns. In short, Google now collects all sorts of data about its users and then customizes its search results and other services to reflect each users unique behavior. It collects the user’s location, the web sites that they have visited, and various other pieces of data. All of this is done with relatively no consent from the user and without notifying them. It is clear that Google’s mission statement that now reads “…organize the world’s information…” should read “… exploit the world’s information…”. All of these changes reflect a continuing trend at Google to create a highly sophisticated personalized platform that not only produces the best results but also the best ads. This disregard of user privacy completely goes against the feel good, do good image that Google has worked hard to create. As a result Google is killing its rendered version of authenticity. Pine gives us three tips to staying authentic: One, don’t say you’re authentic unless you really are authentic. Two, it’s easier to be authentic if you don’t say you’re authentic. And three, if you say you’re authentic, you better be authentic. A large part of being authentic is staying true to yourself. Which is why classifieds giant Craigslist is fighting eBay with everything they have to retain a majority of seats on their own board. For them, running the company they founded the way they always have, is that important to them. Which is the same line of thought that ultimately lost Jerry Yang his job as the CEO of Yahoo. Yang refused to sell out in the beginning to Microsoft because he believed in his company, he believed in staying true to his ideals. At the end of the day it won’t matter who has the better search engine. If Google loses the trust of its users and cannot retain authenticity, Bing, will be more than happy to step up to the challenge of earning that trust and building its own brand of authenticity.

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Cup of Joe: The Seeds of Google Destruction Are Within

The move to trying to save more money online should come as no surprise to anyone for all the obvious reasons. With those reasons being so obvious we won’t belabor the point here (btw, for those wondering, the economy still kinda sucks). What is happening though, is the shift from the printed coupon to the online coupon is very real and is creating the same commotion in the heated online v. offline world as the news debate is. After all, many papers are clinging to the fact that their Sunday circulations remain OK because of the perceived savings offered by the coupons. NCH Marketing Services, a subsidiary of Valassis Communications is reporting an increase of 30% use in traditional coupons with an additional $600 million in savings by consumers. Unfortunately, we often measure just how hot an industry is by how many lawsuits it generates. Yahoo Finance reports : This past summer, Valassis won a $300 million verdict against News America Marketing (NAM), a subsidiary of the Rupert Murdoch-owned News Corp. It accused the coupon powerhouse of trying to monopolize supermarket advertising. In July, following the verdict in Michigan’s Wayne County Circuit Court, NAM president Chris Mixson said the decision “rewards a company that turned to litigation as its business strategy rather than compete.” He said evidence barred by the court would have made a case that Valassis tried “to induce collusion when it announced its new pricing policy in a public investor call.” So as with most things, the offline world is busy navel-gazing in court while the online business is preparing to move in take control. While those two titans of paper coupons duke it out, another battleground is emerging. Although a study by Experian Marketing Services, a global information services company, assessed that 70% of households still clip coupons from newspapers, beleaguered print media companies are starting to lose their once tight grip on the market to online competitors. NCH says online coupon distribution rose 41% during the first 9 months of 2009 and RedPlum.com saw coupon prints from the site jump 51% so far this year. At year-end 2008, online coupons represented 4.8% of all coupons redeemed in the U.S., compared to 6.3% by mid-year 2009. I am still amazed at how slow and plodding the offline world is in most sectors when it comes to seeing the competitive threat that online services is. Hey, all of you folks in the printed coupon business here’s your wake up call. Google purchased AdMob to get into this business. And to prove they are serious Google has begun issuing 100,000 window stickers to businesses in more than 9,000 cities and towns. Each window decal has a unique bar code that can be scanned with the camera feature of most mobile devices. The code will then immediately load the browser with information about the business and allow access to related coupons and offers. You don’t need a printed coupon for that to work.

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Coupons Fast Becoming Online Faves

The results are in: Cyber Monday (and Black Friday) = success ! The numbers are actually up from last year, despite the state the economy is still in. And according to Hitwise, social sites helped to drive sales. (Yeah, FOR REAL.) Their data shows that not only was US traffic up to social sites over the holiday weekend, but downstream traffic to online retailers was also up—especially to Amazon (Cyber Monday winner), Wal-Mart (Black Friday winner), Target, Best Buy and Toys R Us. Wal-Mart also saw the highest increase in downstream traffic from Twitter (among the Retail 500 that Hitwise tracks). However, let me just pull out my favorite wet blanket—sort of. Let’s see, how can I put this? #1—Cyber Monday is a made-up holiday. Nobody outside of Internet marketing/retailing has ever heard of it and it has nothing to do with their shopping patterns. However, there’s good news here, too. We are a nation (world?) of procrastinators—and another day is actually the biggest (revenue-wise) online shopping day of the year—and it’s yet to come . The thinking behind Cyber Monday, created in 2005, was that workers returning from their Thanksgiving holiday would use the Internet to do a lot of their holiday shopping. (At work? Don’t they have the Internet at home, where they have all those glossy ads from stores to compare prices? Were they too lazy/agoraphobic to go out on Black Friday? (Hey, no worries, me too.) Clearly, the logic behind this “holiday” was always flawed.) Two years ago, it was “ Green Monday ” (although now there seems to be some confusion as to whether that label applies to the first or second Monday in December)—with $881M in online sales (versus $733 on Cyber Monday, tied for tenth among the big online sales days in 2007). Last year, it was the day after Green Monday, with $887M (versus $846M on Cyber Monday)—but with this year’s Cyber Monday total the same as last year’s highest sales day (and last year’s highest sales day only a 1% increase over the year before), could we hope for anything higher?

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Social Sites Help eCommerce (and Your Annual Reality Check)

All of the talk of how things were on ‘Black Friday’ is now followed by the yearly quest for the Cyber Monday data. We in the online world love to see just how much the shift to online commerce continues to overtake the traditional way that goods and services are sold. Whether these numbers are inflated or given too much credit is always a concern but this year’s trends, at least from a few sources, points to the continued rise of online growing while brick and mortar struggles. To what degree this year’s trending points to a larger economic trend is a huge TBD (to be determined). Honestly, more people may have experimented with online purchasing to save time and money including gas and food that is part of the in-store shopping experience of a venture out on Black Friday. That’s just my thought and there is NO scientific backing on that one. As for more ‘official’ statistics, Retailer Daily sums it up this way Both annual consumer spending and traffic levels went up on “Cyber Monday”, according to third-party research results. Consumers’ interest in shopping online appeared to carry over from “Black Friday” last week, when e-commerce sales increased at a significantly higher rate than brick-and-mortar sales. Here are a few highlights from the Coremetrics Cyber Monday 2009 report (PDF) : E-commerce sales were 13.7% higher on Cyber Monday this year than they were last year Average dollar amount spent by consumers per online order rose 38.2%, from $130.24 to $180.03 Apparel retailers and jewelry retailers drove this increase with 26.4% and 14.3% jumps in average dollar amount spent per online order, respectively. Sporting goods segment, retailers reported a nearly 55% increase in new site visitors, but a 3.1% decline in average dollar amount spent per online order. Department store retailers reported a 33% increase in new site visitors, but a nearly 10% decrease in the average value of each online order. Per order, consumers purchased 30% more items this year than they did last year. November 2009 American Express Spending and Saving Tracker reports that this e-commerce surge may trend though the holiday season 79% of overall respondents plan to use the internet as a tool for holiday shopping 45% plan to purchase items online 28% will use the internet to buy hard-to-find items 27% will use the internet for product research 25% will go online for gift ideas One particularly interesting piece of data is around the projected use of mobile in the holiday shopping experience is on the rise. According to the Deloitte 24th Annual Holiday Survey, 19% of consumers plan to access the internet via their mobile phones while shopping to find store locations, obtain coupons and sales information, as well as research products and prices. This percentage rose to 39% in the 18 to 29 age group. So do we dare take this information and say that the economy is truly on the rebound and rosier days are ahead for all? Probably not a good idea. I guess the solace that can be taken is that if there is one industry in the marketing world that is at least going to stay afloat during these rough times it’s the Internet marketing segment. Maybe we should just count those blessings and move on. Pilgrim’s Partners: SponsoredReviews.com – Bloggers earn cash, Advertisers build buzz!

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The Cyber Monday Data Is Here!

Let’s face it this holiday season is a pivotal one for all of us from a macro point of view. While many retailers will be focused on their individual bottom lines it will be important to look at how this whole ‘first weekend’ of the holiday shopping season plays out from start to finish with the latest entry, Cyber Monday, happening as you read this. First the good news. Online sales for Black Friday were up 11% over last year according to comScore and the rest of November was an improvement over the prior year. Let’s remember, though, that last year’s holiday season was on the heels of “Bailout 1” and waiting for a new president to be inaugurated. In other words, last year sucked so any improvement over those numbers needs to be tempered. Overall, meaning the performance of the Black Friday weekend in total, was less heartening in that it appears that people are intent on spending less and there was virtually no increase in spending overall from last year. Yahoo News reports Consumers spent significantly less per person at the start of the holiday season this weekend, dimming hopes for a retail comeback that would help propel the economy early in 2010. Consumers said they will have spent nearly 8 percent less on average, or about $343 per person, over the weekend that includes Thanksgiving, Black Friday and runs through Sunday, according to the NRF (National Federation of Retailers). Traffic to stores and websites rose to 195 million people from 172 million in 2008, but shoppers were focused on buying low-priced items, like $10 toys and $9 books, the NRF said. Total spending for the holiday weekend rose to an estimated $41.2 billion, up 0.5 percent from a year earlier, NRF said. Since I am not a prognosticator I am not going to offer some thoughts on where this will all go. What I will say is that this will not be the time for irrational exuberance over numbers that look nice in a silo. This season is about online and offline together and if there is little or no increase (or even a decrease) in spending then we are looking at some interesting times ahead.

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Online Spending Up Year Over Year for Black Friday