A couple weeks ago, Ray Welling interviewed me for a podcast, HotHouse podcast: Online conversation marketing – are you coming to the party? and, to my surprise, followed up with an analysis of what I actually said at 100-miles-per-hour in the podcast in the form of Being there: tend to your brand online and reap the benefits:

Being there: tend to your brand online and reap the benefits

Treat your marketing like a garden and you’ll survive the economic downturn.

Have you seen the classic film Being There? The main character Chauncey (played by Peter Sellers) is a mentally-challenged gardener who through a few twists of fate ends up being a respected political adviser and commentator (I can heartily recommend you getting it out on DVD – a funny film with pointed social commentary that still stings today).

Anyway, when he’s asked his opinion on world events, Chauncey starts talking about the only thing he knows – gardening – and he slowly and deliberately describes the process of planting seeds, watering them, pulling out weeds, pruning, and harvesting. Everyone who listens to him puts their own spin on what he ‘really’ means, and he quickly becomes an internationally respected political guru.

Chris Abraham, interviewed for our recent HotHouse podcast, says Chauncey Gardner’s gardening analogy is particularly apt for online social media marketing today.

Abraham, online PR specialist and president and COO of online consultants Abraham Harrison, based in Washington and Berlin, argues that despite the right-now, viral nature of the Internet, building a company’s brand through social media takes time.

He loves to use real-life analogies:

“Building your communications online is like seeding a reef,” he says. “You have to hang out in the ecosystem, become part of that ecosystem, occasionally adding things that become part of the reef. And if you’re there long enough, the reef builds around you.”

Moving from fish to people, Abraham says social media marketing, or as he calls it, ‘online conversation marketing’, is:

“like going to a party – you need to understand what the ‘lingua franca’ is, who your host is, what kind of appropriate gift you should bring, how people talk, and what people expect.”

He says companies need to become ambassadors for their brand as they take their marketing online – no broadcasting or shouting in this new environment, just a focus on others and a diplomatic tone.

Five dos and don’ts

Another new media marketing consultant, Joseph Jaffe, author of Join the Conversation and Life After the 30 Second Spot, says there are five key things businesses can do to start participating in online conversation marketing:

• Listening – so you can make your contribution to the conversation real, not just hype
• Responding – whether approaches are negative or positive
• Joining in – making non-partisan contributions to position yourself to be invited to join the conversation
• Catalysing – empowering customers to demonstrate your brand on your behalf
• Starting – being a conversation conduit and starting a conversation

He also says that companies shouldn’t be:

• Fake – instead, be transparent in your communications
• Manipulative – don’t try to fool other participants, but instead be open
• Controlling – understand that you can’t control everything all of the time
• Dominating – the world doesn’t operate solely on your terms, allow others room to talk
• Avoiding – marketing is no longer a spectator sport, you must be active and participate

Ritu Pant from the Marketing Hackz website, puts it concisely:

“Conversation marketing is nothing but a way to gain recognition and create a presence among your potential customers. The only thing that is required in order to carry an effective marketing campaign is the ability to dedicate time and be a part of the community.”

“….There is no requirement that you have budget for marketing because it simply requires your time and effort in effectively carrying on a two-way communication. This is one of the reasons why social media has become so powerful in online advertising. If your business doesn’t exist on the web, you are pretty much non-existent.”

Conversations in tough times

The question on every online marketer’s lips is “How will the global financial crisis (GFC) affect e-marketing? Will it be tougher to get companies to spend money on unproven techniques, or will the cost-effective and measurable nature of e-marketing create a boom amid the gloom?

Chris Abraham has some strong opinions on the issue:

“We need to recognize that this is going to be a deep, deep recession – one that’s going to last for a long time,” he says. “Recessions have major ramifications on how consumers spend their income, how companies formulate their budgets, and, perhaps most importantly, how marketing is viewed.  In a recession, marketing is often viewed as an expense…not an investment.

“(In times like the present) decision makers often want to work with ‘proven’ models that they’re familiar with.  And these models will often be pushed by their traditional agencies because those agencies provide these services.  Of course, (what is) proven may no longer mean effective – but at least it has been done before and for the decision makers, it’s best to stick with what is familiar.”

Particularly in the current financial environment, he says, “traditional marketing still very much has a primary role…. we can’t… dismiss traditional type stuff as being ‘so 20th Century’.  The end user – the consumer – will be getting the information they seek on products from various sources. “

Abraham says it’s important to integrate conversation marketing with traditional marketing techniques:

“Social media may not be for every business.  Or, more realistically, the emphasis placed upon social media will vary depending on the client’s needs and the industry they are in.  In practically every case social media will be only part of the equation.”

Abraham encourages new media marketers to turn down the hype and turn up the practicality. “Ladies and gentleman, this is a transformation.  An evolution.  One that is bringing about substantial change.  But the change isn’t absolute nor is it complete.  People may not want every brand to try to ‘engage’ them.  They may want to just buy something and be left alone.

“We need to stop the shrill ‘change or die/nothing will ever be the same’ mantras.  Yes, change is happening, but we need to remember that we are pioneers and early adopters.  Not everyone has a Facebook profile or a Twitter presence and most people don’t religiously read blogs.”

I’ve been thinking a bit about Chauncey Gardner, and I reckon that if he was around today he would be a hit on Twitter. The most popular Twitterers are people who dispense timeless common sense that strikes a chord with everyone, rather than those tweeting about the bleeding edge of technology.

As Chauncey says, a patient, long-term approach will help all marketers steer and develop their business successfully through the recession and beyond.

You are not too late to enjoy the benefits of social media — you will never be too late — because the spoils in social media marketing go to the company that can maintain its social media participation over the long haul over the long term. Start now, start later, and I guarantee that if you’re a lion-hearted social media marathoner, you’ll probably best your competition.  Anyway, Joseph Ratliff did a brilliant job getting you motivated in How The Social Media Promotes Your Business:

The great thing about social media marketing is it offers a place to talk about your business in a new setting that is a lot less threatening than many other types of advertising. Social media is not about the hard sell. Instead, it focuses on creating relationships with people. Social media allows business people to share some of their personal lives with others. This helps to overcome any fear or reservations connected to buying from people online.

If you’ve started a blog for your business, you already have your foot in the water. The next logical step is to begin commenting on other blogs related to your business. Spend some time searching for a few blogs that you enjoy and subscribe to them via an RSS feeder to manage your time. This will allow you to follow several blogs without having to go to each one every day. When you find a post you can contribute a useful comment to, go to the site and offer your thoughts. Leave a link, if you can, so the audience can link to your own blog. Make this a part of routine at least three times a week.

Next, choose one or two social media communities to join. There are dozens and dozens out there, so do not try to become visible everywhere. Two of the most popular social media communities for business networking are Twitter and Facebook. Both of these are effective sites to increase your relationship building skills with prospects. Combine some personal tidbits with some business information until you discover the perfect mix of both. Do not just focus on building big numbers of friends or followers. It isn’t all about the numbers. Instead, build a little slower and spend your time interacting with the people you meet.

Bloody great advice from Tom Foremski of Silicon Valley Watcher, Can You Advise Clients On Social Media If You Aren’t On Facebook Or Twitter?

• You cannot know much about social media by reading about social media.
• If you don’t blog, or aren’t involved in blogging through reading and commenting, you cannot know about blogging.
• If you don’t use Facebook you can’t know what is acceptable behavior on Facebook.
• If you don’t use Twitter you cannot know what is possible with Twitter.

Via Search Engine Journal, Oscars Predictions for 2009 Winners Online:

• AOL’s MovieFone 2009 Oscar Predictions : AOL has put together a slideshow of their Oscar Pool predictions and have picked Penelope Cruz for Best Supporting Actress & Sean Penn as Best Actor from the film Milk.
• Oscar Frenzy : A blog crazy about the Oscars with their predictions list and a vibrant commenting frenzy, Oscar Frenzy has gone against the grain and predicted that Revolutionary Road will win the Best Picture.
• MSN Movies : MSN, like most other online entertainment sites, is not predicting that Mickey Rourke will win Best Actor, and feels that Sean Penn will win it for Milk, although they say Rourke should win because he has earned it.
• Oscars on Go.com : Of course since ABC is hosting the actors they can’t really predict the winners without there being any controversy, but they have set up the Official Oscars site with live streaming of the Oscars and the Red Carpet festivities.

Jonathan Trenn popped this insightful article about Yelp over on Marketing Conversation, The contorversy about Yelp (and be sure to check out David Gelles’ article on a similar topic over at the Financial Times, Yelp rejects claims of extortion):

Ah, controversy.

Now, it’s with Yelp, the mega online review site.  On Wednesday, the East Bay Express, an alternative newspaper that covers Alameda and Contra Costa counties in California, published a very provocative article , “Yelp and the business of extortion 2.0″ on the sales operations and tactics of Yelp.  The paper made some very pointed accusations, some of them seemingly legitimate while others sounding too nebulous.  They state that Yelp is both maniupulating the placements of restaurants reviews as sales tools and then using scare tactics to then solicit advertising sales from these same restaurants.

The accusations are alarming but, because I think the article was poorly presented, it’s left me thinking that Yelp perhaps had a major sales problem in one office as opposed to a company wide sleaze factor policy.

Yelp’s initial response, written on the company blog by CEO Jeremy Stoppleman is inept and insufficient.  He’s likely satisfied that his blog posts are enough…and it may appear to be just that for the time being…but controversies such as this, be they true or just speculation, have a way of undermining a company’s integrity in a hurry.  Especially a site that 1)  is about user generated online reviews, and 2) has trust as a hallmark of its standing.

Oddly, the Yelp blog doesn’t allow comments.  That’s not a good idea…especially for a site that’s about online reviews and citizen participation.

Here’s the gist of the article.  Writer Kathleen Richards talked to “dozens” of business owners over the “past several months” and found that six of them said that Yelp sales reps promised to remove or move bad reviews if the business chose to advertise.  And these businesses would often get sales calls from Yelp reps soon after they mysteriously started getting a rash of negative reviews.  The theory here is that Yelp employees would start to or enlist others to write negative reviews on a company, those reviews would then appear at the top of a company’s page, and the company would get a phone call from a rep looking for an advertising by so those reviews can “go away”…usually to the tune of $300 a month.

For those that declined, positive reviews seemed to begin to disappear.  For those that did manage to buy, negative ones began disappearing.

This is pretty damning stuff.  If true, it shows a coordinted effort between people in sales those on the back end tech team.  It made some establishments feel as if Yelp was acting as if it was the “mafia” in that Yelp was threatening establishments to pay (advertise) in order to not be damaged.  That’s called “protection money” in organized crime.

But as I red between the lines I ended up scratching my head.   Over several months, after talking to “dozens” of businesses, Richards found six restaurants that felt that either they were being offered a quid-pro-qo for advertising to reduce or eliminate bad reviews; or some felt that this extended to manipulative threats of the placement of poor reviews and the elimination of postive reviews.

“Dozens.  “What does that mean?  36?  60?  84?  How did Richards find these restaurants?  Did she talk to one and then ask the owner/manager if he or she knew of any others that had similar stories?  Both questions are important.   The first because it leads to how widespread the problem actually is in the Bay Area and the second, because if there is a lack or randomness to all this, then the sample restaurants are self selected by the reporter.

The article relies on the how some of the restaurant owners “feel”.  These feelings may be completely legitimate.  But it is hard to counter a “feelings”e of another is the one with the feelings remain anonymous.  I fully believe in using anonymous sources, but there should be greater evidence used.  That is, if one is trying to prove that this is a consistent sales tactic used by the company as a whole.

And speaking of as a whole.  This article seems to be focusing soley on the East Bay restaurant seen.  True, it is an East Bay pub, but the article is written as if it is a widespread problem and the issue here is “the business of extortion”.  It fully damns the Yelp based on a small sample of local business’ feelings.

Stoppleman has since written a few more blog posts, but he could use a change of attitude.  There’s been enough discussion on the net about this article denigrating Yelp.  Hundreds of tweets on Twitter, negative mentions on Technorati, and articles in substantial online pubs.

The reason why I say that Stoppleman could use a change of attitude is because he’s treating all of this as an illegitimate attack.  The accusations, regardless of their veracity, at least sound reasonable.  And his defensiveness doesn’t really address the issue.

He does have on post that does work, at bit, in my opinion.  “Nine Myths About Yelp” is designed to negate what he feels are falsehoods.  The most important one he lists is #3 (it should be #1, but he doesn’t seem to realize it).  It is stated here:

Myth #3: Yelp salespeople manipulate reviews for prospective advertisers (for example, offers to remove a negative review if a new client signs up, or a threat to remove positive reviews if the business owner does not choose to advertise with Yelp)

Reality: We have every reason to trust the smart, hard-working and ethical salespeople who work at Yelp.  Beyond this, to avoid even an appearance of impropriety, we’ve taken several steps to ensure no member of our team is tempted to game the system.  Specifically:
1. Yelp salespeople do not have access to the system that deletes reviews; only a few members of Yelp engineering and user support team have this access, and they literally work on different floors within the office.
2. Every Yelp salesperson signs an agreement that s/he will not write reviews of any business while employed by Yelp.  We trust our teammates in sales to live up to this commitment.  We also have several monitoring systems in place to ensure nobody (accidentally or otherwise) crosses this line.
3. Through our vigilance, we once did find a salesperson who encouraged a friend to write a positive review for a prospective client (that the friend had actually patronized). The salesperson’s role at Yelp ended that day.
4. When a new advertiser signs up with Yelp, the relationship is handed off to an Account Manager.  The Account Manager then takes the client through a 30 minute phone training session — and confirms that reviews have nothing to do with advertising.
5. After the training call, the Account Manager sends a follow up survey that asks each client how much s/he agrees with the following statement: “I understand that Reviews are completely separate from the Yelp Ad Program, and that there is an automated filter that may suppress some of my reviews whether or not I am a client.”  Any client who does not click “Completely Agree” in this case gets yet another follow-up call for clarification.

Myth #4: Yelp removes positive reviews from businesses its staff does not like, or from businesses that do not pay for advertising

Reality: A review you may have seen on Yelp previously is no longer there; this happens.  The review in question may have “disappeared” for one of three reasons:
1. The review may have been suppressed by Yelp’s automated Review Filter, which is always out there looking for suspicious reviewing activity (like those anonymous rants and raves you see on other sites).
2. The writer may have removed her own review; she has the right to do that at any time
3. Another user believed the review violated Yelp’s Review Guidelines and sent it to our customer service team for review. The customer service team agreed, then manually removed the review.

Both our customer service team and the Review Filter work exactly the same way for advertisers as they do for non-advertisers.

This is how he should have addressed the issue at the very beginning.  Blown opportunity and his company has suffered and will continue to suffer as a result.  And he has to go beyond stating that the sales people and the tech people with access to placement of reviews work on different floors.

My guess is what happened is that a few sales reps in that particular office would scour the reviews on Yelp, and when they found some recent newly written negative ones, they then picked up the phone and made a sales call, offering the package that places a selected postive review on top – one that is visibly marked as being sponsored.  Some pitches probably went far beyond this…saying that they could make the negative one “disappear”.  Sales people will say sleazy things.  Stoppleman should understand this and not discount this.  He should then conduct some sort of internal audit that would show the public that he is trying to address the problem and root it out if it exists.  Retrain.  Resolve.

Now is it possible that some sales types had relationships with the tech people.  Absolutely.  Different floors – HA!  So the problem may have been more than a poorly written article.  Yelp needs to look into that because, as Yelp knows, online reputations matter.

And to Jeremy Stoppleman…you should allow people to comment on your blog posts.

BL and I adore eachother so I was very excited to receive an email from her last night with a link to her latest article on Business Week, Using social media to market your business is a good idea. Just don’t plan on getting your whiz-kid nephew to do it for free — check it out and check BL out over on her blog, What’s Next Blog. Oh, and when BL asks “how many of them have actually created a successful campaign for clients using social media tools? I bet you’d be hard-pressed to find half a dozen with real track records,” I can proudly state that Abraham Harrison LLC has the expertise, the experience, and the track record to boot!  Anyway, here’s the article:

Debunking Six Social Media Myths

For companies, resistance to social media is futile. Millions of people are creating content for the social Web. Your competitors are already there. Your customers have been there for a long time. If your business isn’t putting itself out there, it ought to be.

But before you take the plunge, bear in mind the many myths that surround social media.

1. Social media is cheap, if not free. Yes, many of the tools that can be employed in social media marketing are free to use. These include Google’s (GOOG) video-sharing site YouTube, Yahoo’s (YHOO) photo-sharing site Flickr, the social-network building tool Ning, and content aggregators such as Digg and eBay’s (EBAY) StumbleUpon. Free blogging tools abound too; among them are WordPress, Twitter, and FriendFeed.

However, integrating these tools into a corporate marketing program requires skill, time, and money. The budget for an effective social media marketing campaign begins at $50,000 for two to three months. I’m sure companies have spent less, and I know they’ve spent more.

Building a site that incorporates interactivity, allows user-generated content, and perhaps also includes e-commerce doesn’t come cheap from anyone who knows what they are doing. Even taking free software like WordPress and making it function as an effective interactive site, incorporating e-commerce, creating style sheets that integrate with the company’s branding, takes more than time. That takes skill, experience, and money.

As a rule, a $50,000 to $100,000 budget can cover the creation of a simple multimedia microsite that becomes the center of an online community. Add in some widgets to help distribute the content and form a credible group on Flickr, Twitter, or Facebook and other networking groups to enhance the community aspect of the campaign. Complex functions add to programming and design costs.

A high-yield, highly targeted blog advertising campaign to kick off and support the program will cost an additional $25,000 to $100,000 a month. Advertising through Google’s AdWords, e-mail support, co-registration, and other tools that drive traffic would be additional costs.

2. Anyone can do it. A surfeit of whiz kids and more experienced marketers are claiming to be social media experts and even social media gurus. Search the bios of Robert Scoble’s 56,838 Twitter followers using Tweepsearch (www.tweepsearch.com), an index of the bios of Twitter users, and you’ll find:

• 4,273 Internet marketers
• 1,652 social media marketers
• 513 social media consultants
• 272 social media strategists
• 180 social media experts
• 98 social media gurus
• 58 Internet marketing gurus

How many of them have actually created a successful campaign for clients using social media tools? I bet you’d be hard-pressed to find half a dozen with real track records.

A successful social media campaign integrates social media into the many elements of marketing, including advertising, digital, and PR. Opinion and theory are no match for experience, and the best social media marketers now have more than 10 years of experience incorporating interactivity, blogs, forums, user-generated content, and contests into online marketing.

Video contests by companies hoping for viral buzz and Google juice are as plentiful as mosquitoes on a humid summer night. But, like their insect counterparts, most video contests suck.

It’s the rare video contest that gets as many as 2,000 entries. Many, like Denny’s (DENM) recent disastrous effort, get fewer than 10 entries. Apparently, 48 Denny’s breakfasts over four years wasn’t a big motivator.

3. You can make a big splash in a short time. Sure, sometimes a social media campaign can produce substantial and measurable results quickly.

Social media is great if you’re already a star, but that doesn’t happen overnight. Amid the recent launch of my T-shirt design business, Pawfun.com, I have relied heavily on my 4,000-plus Twitter followers and 120,000 readers of my What’s Next Blog, which I’ve updated as often as five times a day since 2003. Because that network already exists, with not one dollar spent on advertising, we were able to generate more traffic in our first three days than some major companies get after years online.

ZapposChief Executive Tony Hsieh, whose company has millions of customers who are evangelists for the great service that built the brand, quickly became a Twitter star, with more than 32,000 followers. When Dell (DELL), JetBlue Airways (JBLU), the Chicago Bulls, and other love-’em-or-hate-’em brands joined Twitter, they immediately developed huge followings.

Tweets can be used to drive traffic to articles, Web sites, contests, videos, and so on—if people already care about your brand, or if you have a truly original idea that people will want to share with their followers.

One recent example of a Twitter-generated success is Savvy Auntie, a community for aunts, godmothers, and “other women who love kids” that was launched six months ago by Melanie Notkin. She has counted on Twitter to drive traffic, help her find suppliers, products, and even investors. She developed a Twitter following before launching her business, then tapped into it for help when she launched.

4. You can do it all in-house. Wrong! You need strategy, contacts, tools, and experience—a combination not generally found in in-house teams, who often reinvent the wheel or use the wrong tools.

It is rare indeed to find an in-house team that can not only conceive and execute a social media campaign but also drive traffic to it with effective e-mail segmentation, search optimization, blogger outreach, blog advertising, Google ads, and more.

5. If you do something great, people will find it. Quite simply, that never was true. Until you can drive traffic to your social media effort, you’ve got a tree falling in the forest, heard only by those standing nearby. A great number of tools can drive traffic, including StumbleUpon, Digg, and Twitter, but nothing works better than word of mouse—one friend telling another, “Hey look at this!”

6. You can’t measure social media marketing results. You can use a variety of methods, including mentions on blogs and in media; comments on the content; real-time blog advertising results, and click-throughs to your company Web site. You can get very precise statistics from a variety of sites, including Google Trends, Twitter search, Google Analytics, BackType, and Compete.

The tools are there. The gurus who know how to use and interpret them—not so much.

Ochman, president of Whatsnextonline.com, has been creating new media marketing and online brand strategy since 1995 for companies including IBM, Ford, McGraw-Hill, Budget Car Rental, Stacksandstacks.com, and American Greetings. She tracks online marketing trends and campaigns in What’s Next Blog.

Here’s a smashing list from Lee Odden over on Online Marketing Blog, Best and Worst Practices Social Media Marketing:

• Start with a plan, not tactics.  Research and build a Social Media Roadmap involving:  Audience, Objectives, Strategy, Tactics, Tools/Technology and Metrics.

• “Give to get” – Successful social media marketing programs involve listening and participation. That participation centers around giving value before expecting anything in return. This is not “sales” as you know it. But companies can definitely increase sales as a result.

• Commit resources & time to be successful or you may very well fail. It’s important to forecast labor hours, who, what, when, how and where with the intention of succeeding, not just experimenting. If a social media effort is successful, scalability will be an even bigger issue if you don’t plan for it.  Hiring a community manager for example, may not be justified when a social media monitoring program is started or with a new company, but a job req and understanding of the role should be ready in case it’s called for.

• Be transparent with intentions & your identity or you may alienate the very audiences you’re trying to connect with.  Objectives, strategy and doing your homework about a community should make it pretty obvious what types of commercial messages are appropriate.  Being transparent about intentions might come in the form of stating a purpose:  ”Brand XYZ has created this Facebook page to help consumers make better choices about Topic XYZ”.  It’s fine if goals are to increase sales, but participation should be focused on providing the kind of value that facilitates sales – not attempting to make sales directly. When is the last time you purchased something other than a virtual cupcake on Facebook?

• Understand, you do not control the message.  Old habits die hard and there’s a tendency to want to treat social media participation like advertising where the ability to control messaging is the norm. Once information or media is available on the social web, people will inevitably mash it up, stretch it, pull it and reshape it according to their interests. Brands need to protect their identities, copyright and intellectual property for sure, but rather than “controlling the message” marketers should encourage the mashup and creativity.

• Welcome participation, feedback and co-creation. As comfort levels rise with social web participation, companies will see opportunties to encourage participation with communications, especially with brand evangelists. Developing relationships and community within social communities on the web can facilitate buy in, provide invaluable feedback and crowdsourcing opportunities.

• Metrics should roll up to objectives and objectives should be relevant to the channel.  More than a few companies see evidence of other social media efforts ranging from Superbowl commercials on YouTube to social participation during and after President Obama’s campaign, and “want that too”.  Direct marketing is the lens through which many social media efforts are first viewed, with a tendency to focus on action “A” resulting in “B” outcome. Social media marketing is more like public relations than direct marketing. It’s more like providing resource “A” results in “action “B” that influences outcome “C”. Metrics for success need to consider the pre-goal performance indicators like number of “friends”, comments, links, etc as well as commercial outcomes influenced by social media participation.

Check out his worst practices as well over at: Best and Worst Practices Social Media Marketing.

I have been a loyal subscriber to the New Yorker every since I was 16-years-old in Honolulu, HI.  To me, it represented everything literary and urbane, even though I have never lived in Manhattan. Now I discover from Mediabistro that the New Yorker is rolling out an online book club:

The New Yorker opened an online book club this morning, taking readers on a month long group reading of the recently adapted Richard Yates novel, Revolutionary Road.

The magazine tested the book club interaction last month with a small team of readers, a group reading of Roberto Bolano’s epic novel, 2666. Ranging over email and the comments section, the discussion also included guests like journalist Kate Coleman.

Here’s more from the site: “We plan to approach the books as landscapes for exploration, in which we are the park rangers, if you will, examining the flora and the fauna and fending off the occasional wild animal. (Every good book has one.) We hope you’ll join us in this ongoing experiment, and lend your voices to the clamor.” (Via BookClubGirl)

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 received this lovely email from CC Chapman just now, and here’s some great news for the elusive, Facebook-centric-until-now, The Advance Guard — they have a website:

2009 so far has been a great year for me. The biggest news is that this week we pulled back the curtain on the new web site for The Advance Guard. We’d been working on it for a while now and as you’ll see we wanted to take a bit of a different approach then many do. We wanted photography to play a big role in the site an we wrote the case stories as if they were appearing in a magazine. The site will continue to grow and evolve and I’m looking forward to people’s comments and feedback on it.

Here’s CC’s full email via the web for you to check out.