becoming "engaged" (to use that somewhat irritating, over-used word) with this sector. But a new ethical issue confronts us: many bloggers are endorsing products not out of personal conviction, but because they're paid to do so. Direct marketers are employing armies of bloggers to drive people to order from websites - as are other commercial groups. Do we really have to orchestrate cheating and lying in this way to succeed? Do we simply write off our actions to ourselves and others by saying "business is business"?

The U.S. Federal Trade Commission now has guidelines in place for the use of endorsements and testimonials in advertising and marketing. They have a plan (now being activated) to identify and then fine bloggers USD11,000 each time they fail to disclose they're being paid to write endorsement blogs. The FTC has a good, right and proper intention - but how can they possibly identify whole armies of lying individuals, muzzle them - and keep them muzzled? The threat of a fine may have some impact - but I fear will simply not be enough to make any real difference at all.

So manipulation of social media will continue. But if you hire bloggers remember the inherent risk. Many consumers online are smart and insightful with a sixth sense for detecting sponsored postings which have a promotional or insincere ring about them. If blogs endorsing your product are discovered to be managed - rather than spontaneous - the resulting damage to your brand on business forums and news groups could well be relentless and unmerciful. Bad news can travel fast on the social networks - as well as the good news!

Those You Want to Reach May be Spending Less Time Online

I had dinner in Hong Kong the other night with Cyril Pereira - an old friend who used to be Chairman of S.O.P.A. - the "Society of Publishers in Asia". With another old friend Ashok Nath, he recently held the 4th "Asian Publisher's Conference" in Vietnam. This is an annual conference in Asia designed to help periodical publishers use digital communications more extensively to build reader and advertiser relationships during tough times for the publishing industry.

Building and retaining paid circulation is probably the greatest single challenge in publishing these days. Cyril would like to be able to say to regional publishers that acquiring new subscribers online is simpler, cheaper and more profitable than through the mail. He can't. "Response rates are low and renewal percentages poor", he admits. "While the younger set spend time online, many businessmen and affluent, maturer citizens are simply too busy and preoccupied, and it's hard to reach your best potential subscribers online in sufficient number."

"Army of Incompetents" Driving Down Response?

Cyril is scathing about e-marketing generally. Not only are scams driving down response online, but so also are "the army of incompetents" who believe all they have to do is press "Send" to large numbers of email addresses to get the .01% response they're looking for. "Most online marketers can't write copy in plain English, their typography stinks, there are little or no attention grabbing headlines and sub-heads, they talk AT rather than TO and most either lack - or don't bother to use - the most rudimentary DM skills." Cyril speaks eloquently about the "dominance of incompetence" and I don't think many of us would disagree with him.

The web is saturated with poorly expressed, marginal and deceptive offers. No wonder the DELETE button gets pressed more than any other - and no wonder responsible people are spending less and less serious time online.


James Thornton
Managing Director

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