Bloody great, best-in-breed, article about online PR and marketing ethics by my buddy David Gelles of the Financial Times — he is surely a golden child and new media journalist rock star… be sure to put this article in front of your boss, whether you are a PR flack or are a corporate stooge — I think this article is actually going to be printed into the pink pages of the FT on Thursday, February 12 — go pick it up and hand it to the members of the C-suite, Blogs that spin a web of deception:

A web of deception By David Gelles

An overenthusiastic em­ployee from the computer supplies maker Belkin posted an offer online last month – $0.65 for anyone willing to write a positive review of Belkin products on Amazon.com. Several people took up the offer, producing gushing appraisals of Belkin products they had never used.

After a blogger exposed the scam, news organisations jumped on the story. The offer was removed and Belkin’s president weighed in with an apology.

The incident was a public relations disaster for Belkin. It was also a prime example of “Astroturfing”, the unsavoury marketing practice of generating fake grassroots enthusiasm for a product.

Given the anonymity afforded by the internet, it is hardly surprising that deceptive marketing is on the rise. Consumers are spending more time online and companies are seeking new ways to reach them.

But now, in an effort to regulate how employees behave on the web, companies and industry groups are developing their own online codes of ethics. They want to ensure that when staff do engage with social media, they act ethically.

Last year, Coca-Cola established its own set of social media guidelines and distributed them in a memo to all employees. The policy emphasises the need for transparency and encourages employees to use common sense when discussing the brand online. “We’ve always had very diverse channels to reach consumers,” says Adam Brown (pictured), digital communications director. “Wherever they are, that’s where we go. That’s now evolved into the need for a social media policy.”

So when Mr Brown went online to promote Coca-Cola’s Super Bowl advertisements, he followed the guidelines. On Facebook, Mr Brown announced that he was a Coke employee and pointed other users to the Coke ads on YouTube. On Pittsburgh Steelers fan forums, Mr Brown, who is from Pittsburgh, named his employer and then directed fans to the Coke blog, which had an interview with Steelers’ defensive star Troy Polamalu.

Mr Brown said more deliberate engagement with online conversations was a necessity for a global company such as Coca-Cola. “We’re mentioned several thousand times a day on blogs, and there are several hundred tweets about us on Twitter,” he says. “There is a lot of conversation taking place about our brand without us. Where appropriate, we wanted to start getting involved.”

Companies began interacting with social media years ago. But only recently have those involved with the industry perceived a need to develop ethical standards. Among the first to do so was The Word of Mouth Marketing Association, an organisation for the viral and buzz marketing industry. Womma published an ethics code in 2005, emphasising honesty of relationship, opinion and identity.

Since then, many companies have used the Womma code as a blueprint for their own guidelines. “Companies are learning every day that there is a right way and a wrong way to engage with social media,” says Paul Rand, vice-president of Womma’s board and head of its ethics project. “Some companies are learning by touching the burning pot; some companies are learning from the mistakes of ­others.”

One company that “touched the burning pot” is Shelfari, a social networking site for book lovers, owned by Amazon. As it battled for market share in late 2007, it came under fire for its poor design and clunky user interface. Soon, comments appeared on more than 50 blogs attesting to Shelfari’s greatness. “I have been on Shelfari for a couple of months now and absolutely love it,” read one. “Shelfari is such a great site. I joined a couple of months ago and I have been hooked on it ever since,” read another.

But all the comments were posted by the same user, “schaufferwaffer”, who was soon exposed as a Shelfari employee. Shelfari’s chief executive admitted to the Astroturfing (he blamed it on an intern who knew no better), and promised it would never happen again.

Such behaviour is declared out of line in the “disclosure best practices toolkit”, an ethics code drawn up by the Blog Council, an organisation for heads of social media at big companies. The document advises employees and agencies to announce whom they work for when communicating with blogs or bloggers. It also encourages employees to provide a means for contacting them directly, if someone they interact with via social media wants to follow up with a two-way conversation. The toolkit also warns against using pseudonyms.

IBM was one of the first companies to develop its own social media policy. In 2005, it published its “social computing guidelines”, which insist that employees write under their own names, using the first person, and make it clear they are speaking for themselves and not on behalf of IBM. It also prohibits employees from referencing clients, partners or suppliers without their approval.

UPS is developing its own online ethics policy after recognising how damaging Astro­turfing and other online misbehaviour can be for a company’s reputation. “If one of our airplanes goes down, we have a very clear plan for getting information to the media,” says Norman Black, director of global media services. “We realised we did not have a good plan for responding to a crisis on the ­internet.”

In some countries, deceptive marketing practices are not only frowned upon but also illegal. In the UK, the law identifies “falsely representing oneself as a consumer” as a punishable offence. And in 2006, the US Federal Trade Commission issued regulations stating that word-of-mouth marketers must disclose their relationships. But in spite of these new rules there has been little enforcement of the measures.

Even without prosecution, Belkin seems to have learnt its lesson. Melody Chalaban, speaking for the company, says Belkin will soon be holding seminars to teach employees how to interact ethically with social media, and is also considering joining Womma. “We want to stress that this is an isolated incident,” says Ms Chalaban. “We don’t endorse or condone unethical practices like this.”

Side Bar: The last post: underhand tactics can end in a PR disaster

* Flogging. Fake blogs can help companies get a personal voice behind a marketing campaign – but they risk a PR disaster if they are uncovered. When Sony tried to boost sales of its PSP portable gaming unit, it started a blog supposedly by two boys who wanted PSPs for Christmas. When it was revealed as a fake, Sony apologised and took it down.

* Astroturfing. A technique that gets its name from the practice of generating fake grassroots enthusiasm. One Florida company, PayPerPost, serves as a matchmaker between companies willing to pay for good press and bloggers willing to plug products that they have never used. After receiving criticism, PayPerPost now requires bloggers to disclose that their posts are sponsored.

* Comment spamming. Flooding the comment fields of blogs with enthusiastic notes about a company, even with full disclosure, is not welcomed by web users. When a Motorola employee commented on dozens of posts on a technology blog – each comment a plug for the new Motorola Krave – bloggers responded with snide criticisms of his spamming, which duly ceased.

Copyright The Financial Times Limited 2009

I just spent some time setting up my own CokeTag for my Facebook Profile after hearing about it from CC Chapman.

What I like about it is that it isn’t nefarious. One just sets it up to reflect one’s interested, passions, properties, and there you go! There’s a lot of fun there because you can set up the CokeTag to reflect who you are, instead of just biting everyone and sucking their blood. So, I chose to reflect myself through my favorite TV shows, movies, sites I own, sports I do, and my favorite foodie sites. Then, after you install the CokeTag application, set it up, and so forth, you can start grabbing other people’s CokeTag or you can even check out who is checking you out via the Click Tracker. At the end of the day, I don’t have the vision for the CokeTag application; however, CC does and so here’s what his vision is,

“Trying to make people realize how kick ass this would be for musicians to create a CokeTag and then fans can take it and share it on their sites. or a brand could.”

Here’s the Social Media News Release for the campaign…

Coca-Cola Launches CokeTag Facebook Application With Olympic Tie-In

 

CokeTag Application Empowers Anyone to Promote Themselves and Their Interests With a Do-It-Yourself, Portable Application.

June 6, 2008

Facts

What is a CokeTag?

• A CokeTag is a personal, customizable widget for individuals, bands, bloggers, artists, and companies to share links to content they want to promote and drive traffic to anywhere on the Web.
• Empowers users to bundle links to on- and off-Facebook content in an attractive convenient package, which is associated with and accessible from their Profile or Fan Pages and shared via Facebook private messages or Wall posts.
• Coca-Cola released CokeTag to provide an engaging and relevant online experience for consumers. The useful application is another way that Coca-Cola is leveraging innovative technology and social media to reach consumers where they are increasingly spending time online.
• One of the first uses of a CokeTag will be to promote the we8 recording artists. we8 is an artistic and cultural exchange, uniting eight of China’s most exciting artists and design firms with eight of the West’s most progressive musicians to design a vision and soundtrack that celebrates the infinite possibilities that await when the doors are flung open from East to West. The we8 program is being launched as part of The Coca-Cola Company’s 2008 Bejing Olympic Games marketing activities.
• The CokeTag application is being launched as a beta. Among others, the goal is to watch, listen and learn from consumers to determine how the community wishes to use the application and to gather suggestions on how to improve it as it expands outside of Facebook.
• The Coca-Cola Company aligns itself with delivering the promise of a cross-platform web experience, consistent with Coke’s brand value of bringing people together for social connections across cultures.
• CokeTag is the result of a partnership between The Coca-Cola Company and Linkstorm, which is an advertising technology company that is pioneering a new approach to social networking, online marketing and publishing.

Benefits and Features

• Includes a self-service editor that puts the creator in control of the CokeTag content and skin.
• Every CokeTag packs several levels of easily navigated, expandable menus in a stylized, compact design that allow visitors to instantly navigate to specific content that they are interested in and want to see more about.
• The built-in click tracker lets creators know every time someone looks at their CokeTag and which links they visited. This data is only viewable to the creator of the CokeTag.
• Sharing and posting features facilitate viral distribution via highly targeted personal networks for friends and fans.

Distribution

• Initially built for Facebook, the plan is to allow for a CokeTag to live beyond those walls and will soon be available across OpenSocial sites (i.e. MySpace, Bebo, etc.) and eventually to the greater Internet on Blogging platforms and elsewhere. The goal is to empower users with ubiquitous Web distribution for sharing the information that matters to them and maintaining it one place.
• Facebook users can add a CokeTag to both their personal profile as well as to any Facebook Fan Page. This opens it up so that a company, band or special event can build a CokeTag full of links about them and then fans can take that CokeTag and add it to their own profiles.
• Current Facebook distribution options includes:
  • Create and post your CokeTag on your personal profile page
  • Create and post a CokeTag to any Facebook Fan Page you administer
  • Grab and post any CokeTag that you discover on to your own personal profile
  • Send a CokeTag as Facebook e-mail attachment
  • Post a CokeTag as a Facebook Wall post

Quotes

Attributed to Michael Donnelly, Director, Worldwide Interactive Marketing, The Coca-Cola Company :

“The Coca-Cola Company’s social networking approach has been one of very sincere respect for the communities we participate in. We prefer to politely enter and let the already existing ecosystem help guide us in the right direction as we continue to learn what works best for our brands.”

“I’m excited about the CokeTag program, because while we are starting small and simple, we look forward to quickly growing it beyond Facebook with feedback, advice and counsel from consumers.”

“While Facebook may be the starting point for CokeTag, it is only the beginning. We are excited to be working towards the potential of expanding the use of the CokeTag application throughout the web and we are now working on the best way to leverage the OpenSocial platform. We are looking forward to the day when anyone could potentially create a CokeTag and have it on all of their social network profiles and their blog and only have to worry about updating it in one place. That excites me.”

“We made a distinct decision not to overly brand this application.  We want this to be a helpful utility that connects consumers in a way that is all about them, not us.”

Attributed to David Sidman, Founder & Chief Executive Officer, Linkstorm:

“Coke is the inaugural partner of our Portable Universal Profile (PUP™) platform for social media. Their vision and commitment have brought the platform to life in the form of a CokeTag. The platform is a unique way for brand marketers and advertisers to add great value to social media users’ experiences with a fun, unobtrusive and useful tool.”

“Unlike many other social media marketing programs which force themselves between the users and what they really want to be doing, the PUP enables the brand to become a conduit for user communications.  The brand message can be as subtle as the sponsor and its community may wish, but the application is designed to enhance the user experience of connecting and sharing with friends without intruding”

Multimedia

In addition to the website, www.coketags.com ,we have assembled the following links and multimedia that will assist you in informing others about the application.
IMAGES

• Musician / Band CokeTag
• Sci Fi Fan CokeTag
• Causes CokeTag
• Triple CokeTag Shot

• CokeTag Logo
• Coca-Cola Banner
• The Coca-Cola Company Logo

• Linkstorm Logo

• CokeTag Facebook Application Page
• we8 Fan Page

• http://del.icio.us/coketags

About

About Coca-Cola
The Coca-Cola Company is the world’s largest beverage company, refreshing consumers with more than 450 sparkling and still brands. Along with Coca-Cola, recognized as the world’s most valuable brand, the Company’s portfolio includes 12 other billion-dollar brands, including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitaminwater, Powerade, Minute Maid and Georgia Coffee. Globally, we are the No. 1 provider of sparkling beverages, juices and juice drinks and ready-to-drink teas and coffees. Through the world’s largest beverage distribution system, consumers in more than 200 countries enjoy the Company’s beverages at a rate of 1.5 billion servings a day. With an enduring commitment to building sustainable communities, our Company is focused on initiatives that protect the environment, conserve resources and enhance the economic development of the communities where we operate. For more information about our Company, please visit our Web site at www.thecoca-colacompany.com.

About Linkstorm
Linkstorm is an advertising technology company that is pioneering a new approach to online marketing, e-commerce, publishing and social networking. The company’s unique ad enhancement technology significantly improves performance of all online advertising and improves user engagement by overlaying cascading menus onto any ad format and quickly connecting customers to the information they want. Clients include national and global advertisers, agencies and publishers such as Cisco, Microsoft, Wal-Mart, Chevrolet, HP, Ogilvy, MRM and Hachette Filipacchi. Linkstorm is headquartered in New York City and is funded by visionary investors such as Esther Dyson and Jim Rutt.  For more information, please visit www.linkstorms.com

Contact Info

Contact:	C.C. Chapman
Phone:	508-241-1062
Email:	cc@theadvanceguard.com
Website:	http://www.theadvanceguard.com

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Coca-Cola | Coke | CokeTag | CokeTags | Facebook | Facebook Application | Widgets | Social Media | we8 | Linkstorm