Cercone Brown Blog

Yesterday, the FTC announced new guidelines that could have a huge impact between PR pros and bloggers.

In short, there’s two parts to watch: First is disclosure regarding advertisements, endorsements, paid endorsements, paid-in-kind endorsements, etc. The second is about accuracy of bloggers’ claims.

While the social media universe is all abuzz today, from a PR professional’s perspective these guidelines fundamentally change nothing.  You may not realize it, but we’ve always been liable on these fronts.  It’s just that most have been oblivious to the laws.  (Remember, ignorance is no excuse in the eyes of the law.)

All along when pitching bloggers (or any press, really) AND providing free product or services for review, we have been required to tell them in writing to disclose that they, in fact, received freebies.  Also, if these folks may inaccurate claims based on a pitch (even if we didn’t give them the inaccurate info.), we are responsible.

So instead of complaining about it, here’s what you should consider.  BUT, like anything else, this is my opinion based on my knowledge of the law.  You must consult your own legal counsel before creating your own policies and actions regarding social media (hows that?):

1. Create a standard disclosure statement regarding free product and the like and make it part of all your email communications.  I’m not sure if the mouse print thing is considered enough here, but it seems it should suffice.  Again, I’ll talk to our legal folks and follow up…but the point is, make it part of your standard communication, and not some last minute awkward…”Oh, hey, don’t forget to tell everyone I gave you this for free.”

2. Get a REAL social media monitoring system. I’m not talking Google alerts, guys.  You need a system like Radian6 with a dedicated staffer to monitor ALL the chatter across blogs, forums and social networks (there’s MANY more than Facebook, BTW.)  Get this alerts in real-time, and set the record straight immediately.

There were about 250 great business reasons to do this before, but maybe this is the one that gets companies to take monitoring and reporting seriously. It’s not an intern job!  Social media marketing is moving faster than most even know, and now the legal system is catching up.  If you haven’t already, you should do the same.

It seems all the madness around social media marketing focuses on the usual suspects: Gen Y and Millennials. But lost in the shuffle is Generation X (30-43 yeas), the most often overlooked group in the eyes of social media marketers.

Last week, Forrester Research released a study that showed 59% of people in this age group are actively participating in social networks, most notably Facebook and Twitter. However, when it comes to sharing purchase recommendations digitally – the great accelerator of word-of-mouth – Gen X behaves quite differently than their younger counterparts.

The current assumption by marketers is that by providing engaging, social-media-enabled content on Facebook, Twitter and others, these networks will categorically spark viral transmission.

However, while these broadcast towers work fine for the under 30 crowd, GenXers find them too public for sharing purchase recommendations (the Holy Grail of word-of-mouth).  GenX shares their influence via more private networks, most notably via email.

Imagine that.  Email – not text, not Twitter – is the killer app for GenX.

This little revelation is important to marketers in three ways:

1. Chiclets Must Value Email: When using sharing applets (called Chiclets), it seems “more is better” rules the day.  The truth is that you should confine the choices to the top networks you target, and make sure “email to a friend” is prominently displayed.  And while you’re at it, populate that email with meta language someone will actually use and content rich with photos or video.

2. Rethink Your Email Marketing Approach: All this social media activity should result in a prospect opting into to your direct campaigns.  But don’t only send inbox-stuffers like “free shipping”, but add real content that engages your best customers and encourages them to share your brand with others, as well as offers.

3.  We Know Virtually Nothing About Social Media Marketing: This study shows that the same social network and combination of networks can be used very differently by different demographics.  We are still in the very early stages of development, and we are sure to see more patterns emerge.  Keep a close watch (or CBC will do it for you!)

As GenX moves into their 40s (some of us are there), they will become more and more the financial engine for many, many companies.  Already jaded and disinterested in most advertising, marketers will find the best success when they seamless fit into the private conversations of this age group.

Muck Rack recently launched a new service where PR pros can pay $50 for a Tweet.  The service claims to be a conduit to reporters, so you’re paying them the same way one would use PRWeb, Business Wire or PR Newswire.

Sounds like a good idea at first, but upon further investigation it seems that of @muckrack’s 3,800 followers, very few are journalists.  However, Muck Rack does a great job of aggregating Tweets from journalists and indicating trends.  As a research tool, we love it.  As a paid service to reach journalists, not a big fan.

The reason is that unlike real press release distribution services, Twitter is a personal (remember, SOCIAL?) medium.  Building a following is a one-by-one endeavor.  True, when you get a following, you are talking to a lot of folks.  But they follow you or your client because they are interested in what’s on your mind…to get the scoop on what’s happening.  As soon as you pay someone else to write and communicate, the trust and validity of the medium is compromised.

Bottom line: if you don’t have time or ability to build a following of PR pros, or consumers for that matter, don’t use Twitter.  And don’t try to get into social media.  It’s a very hands-on, time consuming effort.  You don’t outsource it like getting your lawn mowed.

This is another indication that as communication becomes more “democratic” through social media, it does not replace good judgement OR the hard work in creating and maintaining relationships. That goes for PR pro to reporter, or company to consumer. Sadly, these new vehicles will expose more shoddy work by PR agencies…the same folks that called everyone in the news room on a petty release with the ingenious pitch: “Just wanted to make sure you got my release.”

That’s enough ranting for now.  Besides, I need to Tweet this post.

For a good review on Muck Rack, read today’s post on Bad Pitch Blog.

Social media marketing drives sales, a new study says. According to the study by Wetpaint and the Altimeter Group, “companies find correlation between brands’ social media efforts and financial performance.”

The challenge is that this study looked at the 100 most valuable brands in America.  Great.  What about the other thousands of brands that we all know and love that don’t have the money or power of Google, Microsoft and Starbuck’s…all which fared well in this gauge?

First, the study confirms that deep social media engagement with consumers through online channels correlates to better financial performance. The ENGAGEMENTdb study (www.engagementdb.com) showed significant positive financial results for the companies who measured as having the greatest breadth and depth of social media engagement.

In short: social media marketing delivers measurable ROI.

These “Social Media Mavens” on average grew company revenues by 18 percent over the last 12 months, while the least engaged companies saw revenues sink 6 percent on average over the same time period.

The good news is that it’s true that better engagement with your prospects will drive sales, and online on social media marketing will work wonders. But the real danger with this study is that many marketers will look at it this and say to social media marketing agencies like CBC: I want that! Now!

It’s like a couch potato looking at Men’s Fitness and not realizing the amount of time, dedication and hard work it takes to get AND maintain a model-perfect body.

So if this study serves as inspiration to get going on social media marketing, I’m all for it.  But a word of caution: online and social media marketing requires a great plan, a full commitment and a new mindset for marketers.  It’s not about a Facebook page or Twitter feed, which are merely parts of your infrastructure. It’s about creating content in all its forms that is valuable, entertaining and, most importantly, not available anywhere else.  Then bringing all your resources to bear to promote and maintain this communication platform.

Watch this space for a new eBook: The 7 Deadly Sins (and 7 Golden Rules) of Social Media Marketing. It should be ready in the next week or two.