Dave’s Take

On previous blogs, I’ve commented on the new FTC regulations designed to reduce false ad claims made by advertisers on broadcast and online promotional channels. While I completely support the stronger rules due to take effect in December, I questioned the part of the law that forces bloggers to disclose any compensation they receive from sponsors.

While transparency is a noble goal with all public interaction, nitpicking with writers over petty discounts or free samples seems to strain the credibility of the stated purpose of the new law. Since I have yet to read a PDF of the entire bill, I’m hoping that its final version sets some reasonable threshold for monetary compensation, say anything over $100 in actual remuneration. Previously, I’ve expressed my concerns about threatening bloggers over failure to disclose any kind of compensation or discount and how such harassment could have a chilling effect with online reporter’s/blogger’s ability to review products and services.

Online Media Daily has just published an article about the legalities of blogging and its good news for news sites and independent bloggers. According to OMD, the Citizens Media Law Project has launched a new service that will provide free legal services to small news sites and bloggers. While intended mainly for use by nonprofits, its legal team will help those who qualify (they have to be making less than $45,000 for individuals and less than $100,000 for nonprofit organizations). For profits are limited to those grossing less than $250,000. Individual online publishers can qualify on a case-by-case basis, regardless of income.

The backbone of the project is a conglomeration of First Amendment law firms, including such well-known barristers as Baker & McKenzie. A gaggle of nine firms comprise the legal force that will represent writers, reporters and journalists who write about matters of public interest from being legally harassed as a result of their stories. According to David Ardia, Director of the Citizen Media Law Project, the intended goal of the group is to protect writing and reporting with national implications, as opposed to those focused mainly on local issues. The stated motto of the program is to protect those writers that adhere to the standards of “truth, fairness and transparency”, a noble threshold indeed.

This is the type of logical, necessary program that not only helps protect our First Amendment rights, but also works to eliminate the “David vs. Goliath” type of intimidation big firm lawsuits create. As summed up by Jay Rosen, a journalism professor at New York University, “We have taken down the barriers to participation in other ways, but one of the final barriers is legal resources—which are difficult for individual (online) providers to afford.” Amen to that, professor.

As someone who truly enjoys blogging, I was a bit surprised by the latest report issued by Mediamark Research in regards to blogging and its influence within the online community. According to MRI, only 4% of adults share their views via a blog on a regular basis. This number seems a bit more insignificant than one would expect, especially if one visits websites like blogspot, wordpress, technorati or blogarama. By sheer volume alone, it seems that half of the entire adult free world blogs to some degree, but statistics prove otherwise. While their recently released study, Spring 2009 Survey of the American Consumer shows a minority of participation by adult bloggers, it does quantify the influence of those blogs, with a full 10% of online adults reading a blog on a regular basis.

The MRI report goes on to explain the significance of  bloggers and their influence (perceived or not) on a variety of things, including the recent decision by the FTC to regulate how bloggers review products and services. Beginning in December of 2009, bloggers who write product or service reviews will be required to divulge what, if any, compensation they were given for their work. This compensation can range from actual pay per word to simply being furnished the product for free or at a reduced price. Obviously, this blanket disclosure policy leaves a lot of gray area. As someone who has blogged about the inability of the FTC and FCC to do their job, I support the stronger regulations. We need regulatory agencies who can use their congressionally mandated powers to stop predators from stealing us all blind with bogus infomericals and sketchy online banner ads. But I question how mandating blogger disclosures will help in that effort. As usual, the government has opted to use a hammer when the job called for tweezers.

Regardless of how many people write or read blogs, I fail to believe that online commentaries persuade many people to do or buy things they shouldn’t. Compared to broadcast TV, repetitive pop-ups or targeted direct mailers, bloggers are way down the food chain of scamsters. Bloggers are great at creating word of mouth recommendations. They are far removed from the deserving targets of the FTC and the government should keep that in mind when writing new laws.

As everyone in the ad biz knows, things ain’t so hot right now. Clients are cutting budgets, consumers aren’t spending and social media is eating away at the very core of the agency model. Add to this list the fact that the American economy is still in the toilet and you have the perfect storm for the end of advertising as we know it. The latest spike to the heart is the recent phenomenon known as “Crowd Sourcing.” As the name implies, this new wrinkle in promotion is based upon the belief that a product’s users know better about promoting a product than do its creators or their agencies.

Crowd sourcing in a nutshell is the method where “crowds” are allowed direct input as to how a product or service should be marketed. While still in its infancy, crowd sourcing has enjoyed a high-profile existence thanks to products like Doritos, whose promotional arm has awarded huge cash prizes for the best consumer generated TV spot for its Super Bowl buys. For the past three years, Frito-Lay’s has encouraged its customers to write, produce and upload their best ideas for promoting Doritos. They then dwindle the submissions down to a few and ask chip-eaters everywhere to vote for the best campaign. Lest you think this is an exercise for chump change, think again – last year’s winner was awarded $1 million! That’s a lot of bucks for dip, Batman.

The newest entrant to test the crowd sourcing waters is PepsiCo. The beverage giant has decided to let the masses promote its new flavors, colors and packaging for Mountain Dew. Announcing their campaign idea on social sites like Facebook and Twitter, PepsiCo is encouraging users to select which agencies’ (or customers’) 15-second spots are the best to promote their fave new flave. The best of these spots will play nationally through April of 2010, when fan votes will determine which flavors (and agencies) make the cut for final distribution. Boy, and you thought your last client review was tough! Agencies and consumers can upload their 12-second sample spots at: http://12seconds.tv/campaign/dewmocracy.

And it isn’t just PepsiCo and Frito-Lay’s that are turning to the masses for inspiration. This fall, Unilever’s Peperami brand dumped their long time agency and instead, ran a contest for new publically generated TV and print campaigns. Sensing an opportunity, two senior management ad guys recently launched Victors and Spoils, the world’s first creative agency based on crowd-sourcing principles. Regardless of their success, these are the kinds of monumental trends that will, if nothing else, change the standards for agency profitability for decades to come. As Mtn Dews’ Director of Marketing, Brett O’Brien sees it, “It’s unclear whether (crowd sourcing) will be a trend that takes hold in a universal way or whether it’s more of an experiment. In general, there’s a lot of experimenting going on in agency compensation. This fits into the context of that larger conversation.”

Apparently, crowd sourcing is catching on. Recent high profile companies announcing its inclusion in their marketing plans include Amazon, Careerbuilder, Chevrolet and HP. As someone who has worked on a campaign or two, I usually embrace new methods and technology. Crowd sourcing however, is something I can’t fully endorse. While a major element in any successful advertising campaign is keeping customers, how much interest do non-users place in an ad based upon crowd mentality?

Apart from its novelty, crowd sourcing seems to be a double-edged sword. On one hand, you are placating current customers by giving them a way to influence brands they like. But, can you really place your confidence in their ability to bring new consumers to the table? When does an idea go from an inside joke to a coherent message to the masses? Who knows? But what I do know is something I learned long ago – if you’re trying to market a beverage to America, it’s the taste, stupid. No amount of biased consumer promotion will make the taste of something better, or more saleable.

In the ever increasing war between search engine giants, a new search spider has arrived and with it, a new way to search. Goby is the Webs’ latest crawler and its cause for Google and Yahoo to worry (if only a little) for Goby is the first of a new generation of “smart” search engines.

Launch barely a month ago, Goby is attracting widespread attention in the online world for its unique ability to utilize algorithms, structure and categories to deliver specific, timely information. How specific? Well, if you are looking for say a concert to attend or an upcoming festival at which to spend your weekend, Goby can tell you when, where and how. Goby’s ability to deliver this immediate info sets it apart from Yahoo, Bing and Google, who use ginormous databases to furnish their results. Goby is like a cloud-based desktop application – not deep, but very efficient in delivering what it’s designed for – events, locations and times. Asking it to provide information on how to make a rocket would be a wasted search. Goby isn’t the smart nerd who’s knowledgeable about quantum physics; it’s the hot social secretary that knows what’s happening and where.

While its current relevance is for events, Goby’s owners have bigger plans for their smart spider. According to co-founder, Mark Watkins, Goby is soon to be adding such competitive features as travel, retail and health care. “You just have a passion and try to build a successful business that solves problems for people,” stated Watkins when asked about his motivation for inventing Goby. Giving people an immediate way to access all that is happening around them sounds like a worthwhile place to start for Goby. Clearly, we will be hearing more about the new wave of smart spiders.

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In other search engine news, speculation is rampant that Ask.com may soon be on the auction block. Owner/Obsessive Barry Diller is said to be unhappy about his SE being in a distant fourth with just 3.9% of the market. Industry insiders believe Microsoft may buy the irrelevant site in an attempt to bolster Bings’ 9% share. How much that move would improve their popularity is questionable. After all, when was the last time you used Ask.com?