New digital landscape still has rules
FTC makes example of CEO, corporation over reviews

Marketers need to keep at least two things in mind when launching initiatives using new media. First, while the medium may be new, all of the usual rules of marketing still apply. Second, misleading or manipulating audiences remains unsavory and is likely illegal.

The Federal Trade Commission (FTC) recently took action against the latter. Commissioners ruled that Legacy Learning Systems of Nashville and Lester Gabriel Smith, an officer and director of the corporation, used misleading consumer and independent reviews to bolster sales of its instructional courses on DVD. A fine of $250,000 was levied for “unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act.”

“Under the guidelines, a positive review by a person connected to the seller — or someone who receives cash or in-kind payment to review a product or service — should disclose the material connection between the reviewer and the seller of the product or service,” commissioners ruled. The FTC found Legacy Learning Systems recruited and paid commissions of 20% to 45% to “Review Ad” affiliates. These affiliates claimed to be independent reviewers, but received payments to write positive “articles, blog posts and other online editorial material, with the endorsements appearing close to hyperlinks to Legacy’s website.”

If you have ever offered a reward or reduced rate to someone who provides a testimonial on your website, in social media posts or elsewhere, you are likely violating the same rule.

As has been stated in these columns before, you must also remember age old marketing rules still apply to social media, company websites, mobile phone apps and the like. These rules include properly establishing goals, identifying targets, creating messages and imagery that makes an emotional connection and delivering the communication.

Submit your comments to creative@cocoboston.com.

Rate shoppers turn to smartphones
Consumers look for sites tailored to the small screen

More and more consumers are using their smartphones to make purchasing decisions. They want the companies they do business with to have a robust mobile presence.

Smartphone (iPhone, Android, BlackBerry, etc.) users are looking for either websites to be tailored to the size of their phone screens or specialized applications. In recent months, COCO+CO. has observed great growth in mobile technology and has dedicated internal resources to develop mobile sites and applications to accommodate this trend. Consumers are looking to compare products, evaluate rates and prices, choose where to buy and use social media to share their findings.

“Thanks to the increasing purchases and usage of smartphones, approximately 50% of adults aged 18-64 in the U.S. are mobile shopping. With all of these technologically advanced phones in pockets and purses, the way people shop is changing — and anyone interested in selling anything to anybody had better take notice,” wrote William Rosen in the April 27 edition of Advertising Age.

A survey by Arc Worldwide of 1,800 mobile-phone owners found “heavy mobile shoppers comprise about 20% of all mobile shoppers and drive 80% of the activity volume. Light mobile shoppers comprise the rest.” The study suggests, however, the future rests with light users who are gradually becoming more comfortable converting from their computers to handy smartphones.

Those without mobile sites and applications could find rate and price shoppers turning to bankers and retailers who provide mobile convenience.

If you have any questions about adding a mobilized version of your website or an application for smartphones, write creative@cocoboston.com or call (800) 374-4103 or (978) 374-1900.