Promotions on Social Media. Cobalt LLP
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CONTEST, SWEEPSTAKES AND PROMOTIONS IN THE DIGITAL AGE
Digital Media | Mobile Media | Social Media
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WHAT WE’LL COVER
• THE BASICS: what’s a “promoEon?” • 2012. What Did We See/Expect • What’s Happening in the Space • What’s The Latest? • Social Media Gone Wrong and What We Learned
• 2013
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What is a PromoEon?
• CONTEST: game of skill (no chance) • SWEEPSTAKES: game of chance (no skill) • GIVEAWAY: get something for an acEon • COUPON: limited discount or giveaway • REBATE: refund within limited Eme • LOYALTY PROGRAM: reward for repeat business
Blurry lines? Oh you betcha!
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CONTESTS VS. SWEEPSTAKES To Be Legal, One Element Must Be Missing
PRIZE CONSIDERATION (measurable skill or purchase)
RANDOM CHANCE
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• If there’s only visuals provided, it’s probably chance.
• SomeEmes the quesEon rests with the state.
• In the digital age, lawyers oaen are relegated to the courts for an answer.
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Largely OK, but law is not tested: must friend join a site? • Sign up? May be OK if easy to unsubscribe • Buy? NO! • Laws change • O!
“Like” this shoe page so I can win something cool
Largely OK, so long as the “ask” is easy and can be undone easily. Beware, though, of privacy laws and social media restricEons.
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POLITICS OFTEN PLAYS A ROLE
tough on sweepstakes
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a simple change can make a difference
• California: no booze promoEons involving cork. • Rhode Island: must register if ‘in-‐store.” • Arizona: must register intelligence contests. • Colorado: font must be no smaller than 10 point for fine print or two points smaller than smallest ad copy.
• Georgia: CCV promoEons require contract approval.
• Nearly ½ states require CCV registraEon.
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and it’s not just sweepstakes
• Rebates may require POS refund in CT • “Free-‐for-‐visit” proms require disclosures in California.
• Full –purchase gia cards cannot expire in many states.
• Dormancy fees oaen unlawful. • Escheat laws vary state-‐to-‐state
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SOCIAL MEDIA BRINGS NEW EXCITEMENT (AND NEW HEADACHES)
SO MANY MARKETING IDEAS. SO LITTLE LAW.
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• TWITTER – “I am at the movies” • FACEBOOK – “I like the movies” • FOURSQUARE – “I am the ‘mayor’ of the
movies.” • INSTAGRAM – “Here’s an old-timey
photo of me at the movies. • YOUTUBE – “Look at me in the lobby of
the movie theatre, acting cray.” • SPOTIFY – “I’m listening to the
soundtrack from my favorite movie.” • PINTEREST – “Here are all my favorite
movies.” • GROUPON – “I bought this movie ticket
at ½ price.” • LINKEDIN – “I work at the movies.”
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• MORE AND MORE: Social Media • CONVERGENCE: TwiBer + Times Square • INFLUENCE SCORING: CreaKng Measurements • GAMIFICATION: Virtual play = real life money • SOCIAL SHARING: “checking in” from anywhere • SOCIAL TELEVISION: Watch-‐and-‐Interact
Source: HBR blog 2012.
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CONVERGENCE WHAT’S THE LATEST
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Social Digital with
Brick-‐and-‐Mortar Follow the Tweets
PromoKon in Times Square
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You must be cold at that bus stop! HatsRUs behind you has a nice warm sweater.
Use this code for 25% off now: brrsf
GEOFENCING
USING GEOLOCATION
SOFTWARE AND SOCIAL MEDIA
TO DELIVER personalized
CONTENT
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INFLUENCE SCORING What’s the Latest
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Companies can select influencers; use as a voEng mechanism.
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GAMIFICATION What’s the latest
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GAMIFICATION Create custom or pre-‐packaged social games
that reward users with real world perks
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SOCIAL SHARING What’s the Latest?
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“GOT A LO
TTA INFLU
ENCE?
MAKE IT PAY
!”
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SOCIAL TELEVISION What’s the Latest?
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INFLUENCER TWEET COMING SOON
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WHAT’S HOT CAN BURN! Recognizing Risks
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• DIRECT REWARD • SPONSOR MAKES MONEY WITHOUT LEGAL VIOLATION • LEVERAGES SOCIAL MEDIA
• RIPE FOR FRAUD • REQUIRES PRIVACY SCREEN • POTENTIAL CAN-‐SPAM • PR ISSUES IF RULES UNCLEAR • IS PURCHASE REQUIRED? WHAT ABOUT CREDIT CARD?
REFER A FRIEND
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• GENERATES CONTENT AND SALES • VIRAL EVEN FOR NON-‐ENTRANTS • CREATES UGC FOR LATER USE • PROMOTES LOYALTY • ANCILLARY
• PUBLIC VOTING MAY BE ILLEGAL • POTENTIAL COPYRIGHT ISSUES • GO WITH THE WINNER? • OWNERSHIP CHALLENGES • MUDDY R&D? • LOW TURNOUT
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• IN DEPTH VIRAL MARKETING • LOYAL FOLLOWING • INCREASES PRESS • TAKES ADVANTAGE OF EXISTING TALENT AND CONSUMER “STREET CRED” • LEVERAGES RELEVANT HI INFLUENCE PEOPLE • CHEAPER THAN HIRING AN AD AGENCY
• FTC DISCLOSURE RULES APPLY • RELINQUISHING CONTROL MEANS MESSAGE CAN STRAY • STRUCTURE COULD RESEMBLE EMPLOYMENT CONTRACT • REQUIRES MANAGEMENT OF LOOSE CANNONS WHO SAY INAPPROPRIATE THINGS • CAREFUL ABOUT USING KIDS; SCHOOLS AND PARENTS INVOLVED
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Creates physical traffic Allows for “treasure hunEng” Rewards true fans who “know” Allows exposure for quirky or under Visited exhibits Allow for maximum virality
Limited parEcipants Could create “zoo” Requires a camera or cameraphone “race” component could mean liability for accidents.
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• SPONSORS MAKE A SALE • SALE IS NOT TRIGGERED UNTIL POPULARITY ASSESSED. • CAN LIMIT OR UNLIMIT DEAL • INCREASES TRAFFIC ON SOCIAL MEDIA SITES • GOOD WAY TO DUMP INVENTORY
• BAD POTENTIAL PUBLICITY • GIFT CARD LAW APPLIES AND ACTUAL PAYMENT CANNOT EXPIRE • CUSTOMERS MAY NOT UNDERSTAND TERMS, LEADING TO PR PROBLEMS.
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AVOIDING PITFALLS “uh oh… am I in trouble?”
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TIP:�
Section 5 of
the FTC ACT:�
influencers
should
disclose RelaEonship must be disclosed or company liable
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CONTESTS AND SWEEPSTAKES MUST BE ADMINISTERED THROUGH APPS ONLY (NO “LIKE” OR “COMMENT” PROMOTIONS). NO FACEBOOK ACT CAN BE REQUIRED NO USE OF “LIKE” AS A VOTING MECHANISM NO FACEBOOK ENDORSEMENT
THE “DARLING” OF SOCIAL MEDIA SITES
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Tip:
• No foul lang
uage
• No rapid-‐fir
e spamming
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TIP: • Discourage mulEple accounts. • Discourage spamming and mulEple retweets. • How will you contact your winners?
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PROMOTIONS GONE WRONG horribly horribly wrong
….. and WHAT WE LEARNED
Image taken from…
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PRACTICE POINTER: COURT ISN’T ALWAYS THE ANSWER
If it’s not your campaign, you cannot control the message If the message is bad, consider whether change is warranted
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2013 UPDATE: Price Chopper Purchases Wegman’s!
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PRACTICE POINTER: NEVER PENALIZE THE CONSUMER/CONTESTANT
PromoEons and coupons should be clear that pre-‐screening event will happen If a contest, rules should state that brand must be held in “posiEve light.” Popular vote should never fully govern results of a UGC promoEon Expect “gaming” of the system Admit your mistake and turn it into posiEve PR
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“THIS PRETTY WITH INK DESIGN IS AWFULLY CLOSE TO VISTAPRINT’S”
Defensive, nasty reply backfired!
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PRACTICE POINTER: BE TRUTHFUL, EVEN IF IT HURTS
Don’t try something you cannot pull off Always be authenEc If you cannot arract an audience, it’s probably not your audience
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August, 2011 Serled for a
“chicken check”
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PRACTICE POINTER: PLAN FOR A “HIT”.
Viral means return can be huge FTC won’t want to hear “I ran out” While supplies last isn’t always a cure-‐all When OPRAH’s on, we all watch
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Consider “the OPRAH factor” when hiring a celebrity (no, really… remember the beef?) State law requires enough “on hand” to reasonably accommodate Downloadable coupons and codes should have daily limits Unique promo codes are advisable Internet is worldwide, so place appropriate geographic limits
Quantas Fleet Grounded After Union
Stops Talks. Mayhem Ensues
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TEST
Microsoft’s using a worldwide tragedy as a marketing opportunity. Oh, and 100K? @bing #bingcheapbastards
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PRACTICE POINTER: TIMING IS EVERYTHING. ATTITUDE, TOO.
If bad intent can be construed against a marketer, it will Defensive postures will be laughed at, mocked, and shared Viral Bad is worse than nothing
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PRACTICE POINTER: INTERNAL EDUCATION IS IMPORTANT
AGs frown on lack of preparaEon – it’s not an excuse Know you technology (mayorships can change hourly) Date-‐stamp promoEons and limit to first “winner” per day Tell staffers about the promoEon before it’s released
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“Your Other You is a unique interacKve experience enabling consumers to play extravagant pranks. Simply input a liBle info about a friend (phone, address, etc), and we’ll then use it, without their knowledge, to freak them out through a series of dynamically personalized phone calls, texts, emails, and videos. First, one of the five virtual lunaKcs will contact your friend. They will seem to know them inKmately, and tell them that they are driving cross-‐country to visit. It all goes downhill from there. The Matrix integrates seamlessly into the experience and you can follow the progress of your prank in real Kme online. Each piece of the campaign assures that it is as Google-‐proof as possible.”
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File under “E” for “EW”
The “Mystery Caller” The “We know where you live” email
The “Coroner Motel” The “Sign”
The “Grand Finale
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• RADIO STATION OFFERS “100 GRAND” OVER RADIO – winner sues
• HOOTERS OFFERS SELLER OF MOST HAPPY HOUR FOOD A TOYOTA THAT TURNS OUT TO BE A “TOY YODA.”
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PRACTICE POINTER: COMMON SENSE IS PARAMOUNT
PLAY YOUR OWN GAME CONSIDER GENDER AND ETHNIC ISSUES CONSIDER SOCIAL CONTEXT ISSUES
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