How Will the FTC Affect Twitter and Advertising?
FTC: How will it affect Twitter and Advertising
Recently, CNN covered FTC targets bloggers, celebrities along with many other media organizations. Basically this rule extends to the internet including bloggers and social networkers (along with celebrities) or just anyone who endorses a product. This is not just an endorsement, but one that involves a monetary exchange.
The Federal Trade Commission (FTC) wants anyone endorsing a product for monetary gain to disclose what companies they are working with to ensure the integrity of the product. With the undeniably fast growth of social networks like Twitter and Facebook, as an example, users are turning to monetizing their streams.
Paid to tweet companies like Be-A-Magpie, Sponsored Tweets, and more have popped up in the last year alone. With some tweeps with more than 10,000 followers, these applications allow users to choose what advertisements to tweet. These tweets, if done tastefully are unobtrusive. Already most of those sites require some type of disclosure to allow users to know. For example, perhaps you might have seen #ad, #sponsored, or “my sponsor…” or something similar to those examples.
(Note: The paid to tweet sites listed above are not an endorsement, but an example and have no affiliate links tied to them to give any gain to anyone.)
It is important to disclose tweets that endorse products because it allows the user to keep an honest front with followers, as well as an honest front for the company and the product being represented. However, as the CNN article listed above mentions – the FTC may go after advertisers first before bloggers and social network users so the companies will make sure to provide instructions for product reviewers or even Tweeps to adhere to the disclosure compliances.
How will this affect Twitter and advertising? Well, it would just mean that companies like Be A Magpie and Sponsored tweets will continue to make sure some type of disclosure is issued with each tweet by their users. This will also drive away companies that are seeking less honest ways to advertising products that are questionable. Also, tweeps will now know exactly what is being endorsed.
What do you think of the FTC’s new policy? Do you pay to tweet sometimes? If so, do you use some type of disclosure?
23 Responses to “How Will the FTC Affect Twitter and Advertising?”
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I would expect more compliance in proportion to the value of the brand. That leaves the FTC with the task of going after the thousands of smaller brands, or even Mom&Pop shops that are doing it now. On the other hand, how can the FTC prove that somone from outside the US was paid for promoting a brand or business in the US? Is it really practical? Is it worth it? I doubt it.
The FTC’s policy doesn’t bother me one bit. Whenever I do a review on my blog I always take the time to mention what company it was that actually sent me the product. I also pursue most of the companies that I have reviewed for instead of the other way around so I am happy to let people know the company was kind enough to provide the product. It’s unfortunate that there are a lot of “mommy” blogs where the mother does nothing but reviews and giveaways. It is obvious that a lot of their posts are done to make money. I don’t really need the FTC telling those bloggers to disclose that they’re being paid.. the blogger themselves make it quite obvious by having an endless amount of reviews.. but I guess for the naive out there that actually think some of these people that do 10 reviews a day have an honest opinion it’s a good idea the FTC keep an eye on them.
As far as posting #ad after your paid tweets, I think it’s a great idea. I just did my first sponsored tweet not long ago and I was happy to receive over $5. That’s a lot of money for a stay-at-home mom that can’t even consider going back to work because of the economy. However, I am not on twitter simply to make money. I am on twitter to network with others… and sometimes those “others” spam me to death with their advertisements and affiliate links.. and once that happens 10+ times, they are blocked. So I hope that by disclosing I am posting an #ad, those that I value on my twitter will take it to heart that I’m just trying to honestly go about making a few bucks for my kids future education. I’m not trying to become a millionaire and don’t want you for my pyramid scheme or mlm “business”. And by doing this honestly I hope it will help to keep ALL of our twitter accounts spam/jackass free.
It’s my impression that those types of tweets you mentioned are mostly ignored by the recipients of said tweet. Usually resulting in an unfollow….
One more example of government meddling with private enterprise & our economic freedoms. And as Mr. Taboada mentioned, likely very expensive & impossible to enforce equitably.
Each tweet would definitely have to have the disclosure in some form (hashtag or otherwise).
@Monica: “…hope that by disclosing I am posting an #ad, those that I value on my twitter will take it to heart that I’m just trying to honestly go about making a few bucks for my kids future education” — Oh, absolutely! As I blogged earlier today (on this exact topic), honesty always instills trust; and I don’t expect this to have any negative effect on decent affiliates.
Yes, a bit rediculous indeed. Everyone knows when someone is ‘selling,’ and the reaction is generally the same as getting spammed. Amd, if you’re onto Internet social media marketing, everyone knows you don’t build an internet presence by puking out a lot of links, nut by providing value yada yada.
If the FTC goes through with this i would think Twitter would have to moderate the tweets more closely in which they just put in new software to reduce the spammers & better track real time followers.I think this move would force them to moderate the tweets from sales tweets to actual conversation tweets.Hmmm…
Regulated tweets? sounds costly.
With just 140 characters to play with surely it can’t take the FTC more than oooh … say ‘a day’ to tell Twitter how its users are expected to comply?
I would have very high hopes that the brains behind an organisation as powerful as the FTC new about Twitter?
As such I’d really hope that they realised one of the fastest growing, current, ‘new media’ sensations was covered by these guidelines and it’s users would want to know …. and therefore the solution was …. ?????
They had taken Twitter into consideration … hadn’t they?
@Matches Malone: Actually there are people who click on those links. I have been using Sponsored Tweets myself and they disclose how many legitimate clicks have been made when you tweet. They use it as a means to gauge how much to suggest as a price to accept paid to tweet gigs.
@David Taboada: Agreed
@Monica: I have blogged on my site about using the paid to blog in a tasteful manner… even Izea retweeted it at one point as they agreed on it. I was quite flattered. As a paid to blog user myself, I am VERY picky on what I blog. I will blog occasional contests if they are fun, but mostly I look for internet websites with tech-like relations. I am sure if I eventually put this to my mommy blog (mommy-blogger.net), I will be just as picky. I already have put a disclosure there for the future. I understand the frustration of going to a mommy blog site and it is nothing but product reviews instead of mixing in some day to day mommy experiences or just blogging about useful sites for the heck of it.
@ML English: It might be costly and something that would be hard to pinpoint, which is why usually the companies will be approached first and be held accountable first before bloggers and social network users are cornered. This is however a good warning for those not. I know places like Blogverse even send messages out to their users on opportunities that they actually tell bloggers to not disclose that the posts are paid to review. I have never taken them as I never have agreed with non-disclosure. For example, I would not want people to endorse my own small webhosting business for money without a disclosure… otherwise, they are welcome to write a review. I tend to stay away from it for my own small business, on the blogging end. It is more genuine coming from an actual client.
@Brian: It is not always seen that way. Sometimes the most engaging and interesting people out there are very good at inserting endorsements and people will click. It is balancing that and making sure to engage with your followers genuinely. If you list in your profile that you are into some type of business or run your own business, people will know that eventually you will talk about selling things on occasion. It is when it is out of hand and all you do is press your business on people – that is when it becomes spam and very noticeable.
@Terry White : This is a tricky situation as Twitter is not responsible for your tweets in particular. If you are spamming, usually the following, and messages, and reports from users will do fine. Already Twitter weeds out spammers every few months and each time it is quite a noticeable amount. I believe the last time I noticed it, it was toward the end of August and I was glad to see over 200 spammers/ questionable accounts taken off before I did my own look into my followers to weed them out.
Right now, Twitter has a pretty open door policy towards making money while using their system. There are people that already abuse this system and are dealt in time. Rather than fall back on Twitter, it should be more a fall back on Brands, companies and encouraging their endorsers to put some type of disclosure first.
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Hi David~
Thanks for the comments.
Reading between the lines it appears this is directly targeted at two things.
1. Stopping companies paying people to give testimonials who are abusing the system (imagine that)
2. Stopping those marketers that run massive ads (online, newspapers, magazines, radio, tvs, etc) displaying a picture of the before and after of a person stating that the advertised product gave certain weightloss results. <— That is an example. (but actually the results had nothing to do with that specific product or even specific person) Then those marketers take it a step further and create blogs to make it appear more personal.
-Al
Well stated~
Many agree with you on that one too
Hey Mike
Can we say spam??!? Speaking of spam..
I saw a bumper sticker this summer that said “I love spam”
I laughed so hard thinking of online spam. Certainly the person that put the bumper sticker on their car was thinking
of the food Spam. Funny to say the least
-Al
Great points Monica~
Thank you for sharing~
Many blessings to you and you family
-Al
Hi Brian,
You’re right my friend…
They may know that, but do they truly understand it? If they did understand it, why would they continue to do it?
Smoking for example, we know its bad for us but why don’t people understand it enough to stop?
Maybe it comes down to those people want quick fixes, then again who doesn’t, but life simply doesnt work that all the time.
-Al
Nile you are a classic example of a world class blogger. Wow~
I hope to be like you when I grow up
Thank you kindly,
-Your Pal Al
Hi Kevin,
Good comment added.
Did you see my reply earlier on this article?
-Al
Great points made and well written article. Just how effective is Magpie though? Anybody comment from first hand experience.
@maps4pets I will eventually do a crossposting if Al allows it as I have quite a bit experience with a few and have a large opinion about each: sponsored tweets, be-a-magpie, and twittad, amongst others.
The door is open for you Nile…..
I do welcome these changes. However, I’m a bit miffed that these changes don’t seem to apply to traditional advertising methods. It really won’t affect me that much except that I will have to remember to indicate that an affiliate link I post on twitter is an affiliate link.
Hi DeAnna,
It only takes the actions of a few to make things more difficult for everyone. If people aren’t trying to scam or over hype what they are selling they won’t have to worry.
Thanks for the comment,
Skeeter