By: Aaron Mann

The shift that's occurring in marketing, both in philosophy and in practice, is exciting and dynamic. In the new paradigm, the empowered consumer is in control -- creating and spreading messages.

The potential value that is created at the intersection where brands and consumers engage is infinite.  It also is uncharted territory as it relates to how digital communication technology has accelerated the velocity and reach of its impact.

As you probably know, the FTC is poised to release the first update to its “Guides Concerning the Use of Endorsements and Testimonials in Advertising” since 1980 (!).  You can read the proposed guideline text (84 pages, PDF) here.

Socialarc has proactively taken steps to make sure our clients and the brand community are ahead of the proposed changes. We will be sharing insights on a regular basis as part of our leadership commitment and involvement with the WOMMA sub-committee on ethics.

There are three main sections to the proposed FTC changes, but the one that is most pertinent to social media marketing is: “disclosure of material connections”.

Here are 4 key insights

1. More than just Blogs: A lot of the talk and focus has been around blogs - Pay for Post, free product, etc..  The changes actually span all forms of media that are publically accessible - so that means YouTube, Message Boards, etc.  Facebook is less clear because the profiles are private, but groups are broadly (and arguably publically) accessible.  Think broadly across the social media landscape.


2. Not Material, No worries:  The vast majority of social media outreach doesn’t involve a “material connection” or inducement at all.  Things like promoting a contest, getting out information, distributing promotions where there are no “extras” for influencers, directing people to micro site, and generally talking to your audience in a transparent and authentic way are not impacted by the proposed guidelines..


3. If it walks like a duck…or what’s material? Play it safe and assume that anything you do ‘just for influencers” is material.  Would sending out a $6 mascara sample be a material inducement?  Probably not, but just assume it is.  This is standard operating procedure for us at Socialarc.  Let people know you got a sample and then get on with the review….On the other hand, free trips given to  message board influencers absolutely should have been disclosed , don’t you agree Royal Caribbean? Material connections in the FTC draft specifically include employees working for a brand (or on behalf of a brand), street teams, and anyone else otherwise getting compensated for spreading the word. Apply the common sense test: “if I was the consumer and knew about it, would it effect my perception of the post?”


4. Communicate clearly and track everything:  If you send out samples or a special promo to 600 bloggers, track every one of them.  Socialarc establishes a campaign home page that scrubs the feeds/sources (since we don’t want every posts from the source, just the ones about your brand).  That way we know when things are posted – great for easy tracking (see ROI!) and for compliance. If you see something posted that doesn’t disclose the intent of the program perhaps includes an extravagant claim or just looks “off”, it’s best to immediately send an email, private message or other outreach asking for correction.  Keep these as part of your tracking.

Where can I learn more?: WOMMA is a great resource and we strictly adhere to WOMMA Code of Ethics. We also participate on an ethics sub-committee so you can expect more insights as this unfolds.

Social media is the ultimate way to connect a brand with its audience and doing so in an authentic, transparent (and fun) way is always the best strategy.