Testimonial Marketing
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This document provides an overview of testimonial marketing and Federal Trade Commission (FTC) guidelines regarding endorsements. It defines what constitutes an endorsement, outlines key disclosure requirements for sponsored endorsements, and discusses potential legal liabilities for misleading statements. Examples are given to illustrate different endorsement scenarios. The document aims to educate marketers on best practices for using testimonials in compliance with FTC rules.
![Byron White, ideaLaunch
Chief Idea Officer
Twitter: @ByronWhite
Byron[at]ideaLaunch.com “The only marketing
Phone: 617-227-8800 x 201
left is content
marketing.”
Seth Godin
Free 101 Content Marketing Tips Book
PDF Version Visit ideaLaunch.com/101](https://image.slidesharecdn.com/contentmarketingwebinarmarch2012-130205125819-phpapp01/85/Testimonial-Marketing-26-320.jpg)
Testimonial Marketing
- 1. Testimonial Marketing Content Marketing Webinar V31 Byron White Scott Mores Robert Russo Chief Idea Officer Business Development CEO and Founder ideaLaunch.com Verified Credible Verified Credible @ByronWhite 240 Commercial Street Boston, MA 02109 617-227-8800
- 2. What is Rules and Guidelines for Content Marketing? Testimonial Marketing
- 4. It’s the art of listening to your customers’ wants and needs Search Box Social Media Web Analytics Keyword Popularity Customer Service Questionnaires Geo-Targeting
- 5. And the science of delivering it to them in a compelling way Articles Blogs Books eBooks RSS Feeds Printed Books Newsletters Videos Web Widgets
- 6. It’s catching customers orbiting at high speeds Applet Desktop Events Information Portals Mobile Podcasts RSS Feeds Social Networks Video Portals
- 7. With information they want and need Downloads Deals Geo-Targeted Offers Interest-Targeted Offers Send to Friend Re-Tweet Likes Loves Repeat Visitation
- 8. It’s testing campaigns to learn what works best A/B Testing Multivariate Testing Eye Track Testing Segmentation Testing Geo Target Testing Usability Testing Content Testing
- 9. And finding the most efficient path to engagement and sales Score Engagement Qualify Lead Evaluate Intent Induce Trial Motivate Purchase Get the Sale Correlate Assets to Sale
- 10. Content Marketing is a Process and Workflow
- 11. Rules and Guidelines for Testimonial Marketing
- 12. The FTC Guide in Review • In 2007, the FTC began the process of reviewing its “Guides Concerning the Use of Endorsements and Testimonials in Advertising” • In 2009, the FTC updated the guide recognizing the role of self- regulation with "new” social media platforms • Only “sponsored” communications are subject to regulation and transparent disclosure is required for “material connections” • There is potential liability for advertisers, advertising agencies, and endorsers for misleading and unsubstantiated statements made by the endorser • Since 2009, there are many cases opened and closed with damages
- 13. What is an endorsement? • Any advertising message that consumers are likely to believe reflects personal opinions, beliefs, findings, or experiences of a person or organization other than the sponsoring advertiser • Endorsements include: – Verbal statements – Demonstrations – Depictions of the name, signature, likeness or other identifying personal characteristics of an individual – The name or seal of an organization
- 14. What is “not” an endorsement? • Endorsements do not include: – Statements by consumer or user for a product or service without “material connection” to that manufacturer, seller or service provider – Statements by an identified company spokesperson
- 15. What are guidelines for endorsements? • Must reflect the honest opinions, findings, beliefs, or experience of the endorser • May not convey any express or implied representation that would be deceptive if made directly by the advertiser • The Guides require the disclosure of any “material connection” between the advertiser/seller and its endorser • A “material connection” is information that could impact the weight or credibility a consumer gives to the endorsement • Disclosure must be clear and prominent • Language should be easily understood and unambiguous • Placement must be easily viewed and appear in a readable and noticeable font size/color
- 16. Define a “sponsored” endorsement? • Consideration given to a speaker or blogger by an advertiser in the form of benefits or incentives (e.g., cash; free products; prizes; special access privileges) • Relationship between the advertiser and speaker (e.g., employment)
- 17. Grey Zone: Exact Words The endorsement message need not be phrased in the exact words of the endorser, unless the advertisement affirmatively so represents. However, the endorsement may not be presented out of context or reworded so as to distort in any way the endorser’s opinion or experience with the product.
- 18. Grey Zone: X Customers When the advertisement represents that the endorser uses the endorsed product, the endorser must have been a bona fide user of it at the time the endorsement was given. Additionally, the advertiser may continue to run the advertisement only so long as it has good reason to believe that the endorser remains a bona fide user of the product.
- 19. Grey Zone: Scientific Evidence An advertisement employing endorsements by one or more consumers will be interpreted as representing that the product or service is effective for the purpose depicted in the advertisement….Consumer endorsements themselves are not competent and reliable scientific evidence.
- 20. Common Sense "If there is a relationship that consumers would not expect, and it would effect the value, then it should be disclosed.” "Bloggers should identify a sponsored (paid) endorsement in the text of the blog, not a hyperlink or footnote, to properly and fully disclose such endorsement and comply with FTC guidelines.” “No one ever died from full disclosure” Richard Cleland FTC Division of Advertising Practices
- 21. What are the liabilities? • Advertisers are subject to liability for false or unsubstantiated statements made through endorsements, or for failing to disclose material connections between themselves and their endorsers • Endorsers also may be liable for false or misleading statements made in the course of their endorsements
- 22. Consequences for Breaking the Rules http://www.ftc.gov/opa/2011/03/legacy.shtm
- 23. Examples Example 8: A consumer who regularly purchases a particular brand of dog food decides one day to purchase a new, more expensive brand made by the same manufacturer. She writes in her personal blog that the change in diet has made her dog’s fur noticeably softer and shinier, and that in her opinion, the new food definitely is worth the extra money. This posting would not be deemed an endorsement under the Guides. Assume that rather than purchase the dog food with her own money, the consumer gets it for free because the store routinely tracks her purchases and its computer has generated a coupon for a free trial bag of this new brand. Again, her posting would not be deemed an endorsement under the Guides. Assume now that the consumer joins a network marketing program under which she periodically receives various products about which she can write reviews if she wants to do so. If she receives a free bag of the new dog food through this program, her positive review would be considered an endorsement under the Guides. http://www.ftc.gov/os/2009/10/091005revisedendorsementguides.pdf
- 24. More Information? Upcoming Webinar FTC Will Host Public Workshop to Explore Advertising Disclosures in Online and Mobile Media on May 30, 2012 http://www.ftc.gov/opa/2012/02/dotcom.shtm Previous Webinar Slide Deck Implications of Social Media Oversight on Communications and Marketing Efforts: the FTC’s Perspective Richard L. Cleland FTC Division of Advertising Practices Bureau of Consumer Protection http://www.ideaLaunch.com/FTC
- 25. Measuring the Bang for Testimonial Marketing
- 26. Byron White, ideaLaunch Chief Idea Officer Twitter: @ByronWhite Byron[at]ideaLaunch.com “The only marketing Phone: 617-227-8800 x 201 left is content marketing.” Seth Godin Free 101 Content Marketing Tips Book PDF Version Visit ideaLaunch.com/101