Brandeo is an online marketing resource that cuts through the clutter to update you on the need-to-know marketing ideas and insights that help build brands and increase sales.
Social media helps improve offline relationships says new research conducted by Euro RSCG Adweek 11/20/09
74% of Americans read newspapers either in print or online according to the Integrated Newspaper Audience report from Scarborough Research. Marketing Charts 11/19/09
Spamming is illegal but here’s another reason not to do it: 41% of respondents in a study of email and traditional mail promotions say irrelevant promotions would make them consider ending a brand relationship; an additional 22% say they would definitely defect from the brand. Marketing Charts 11/18/09
Last week we posted about TechCrunch's expose of social gaming companies, such as Zynga, who make hundreds of millions of dollars on Facebook and MySpace by scamming players who accept offers for in-game currency. The problem is that the special offers are really lead generation scams. One example: a “Farm IQ Quiz” offered by Offerpal rewards the user with Farm Cash for taking the survey---and signs them up to a $9.99/month mobile subscription without the user’s consent.
A previous video of the Zynga CEO, Mark Pincus, has surfaced showing him saying:
“I did every horrible thing in the book to, just to get revenues right away. I mean we gave our users poker chips if they downloaded this zwinky toolbar which was like, I don’t know, I downloaded it once and couldn’t get rid of it.”
The video is below: if you're viewing it at work, turn the volume down; Pincus drops the F-bomb in it.
Facebook promises to be more vigilant in ferreting out these scams, but despite having made, reportedly, lots of money on these deals, I think they (along with the scammed consumers) are the losers here. Scams like this cause legitimate advertisers to question the wisdom of advertising on Facebook, MySpace and others, especially after seeing headlines like this: Are You Getting Scammed by Facebook Games?, or How To Spam Facebook Like A Pro: An Insider’s Confession. It doesn't help that scams like these have been occurring for awhile.
Social gaming companies are making hundreds of millions of dollars on Facebook and MySpace. But in a series of posts, TechCrunch says some of these gaming companies, such as Zynga and Farmville are making money by scamming players who accept offers for in-game currency in exchange for special offers that are really lead generation scams. One example: a “Farm IQ Quiz” offered by Offerpal rewards the user with Farm Cash for taking the survey---and signs them up to a $9.99/month mobile subscription without the user’s consent.
Another example provided by TechCrunch: Users are offered in-game currency when they sign up to receive a learning CD from Video Professor for just $10 shipping. But a different page, separate from checkout, tells them they will be getting a full set of CDs at a cost of $189.95 unless they return them.
TechCrunch notes: “Here’s the really insidious part: game developers who monetize the best (and that’s Zynga) make the most money and can spend the most on advertising. Those that won’t touch this stuff (Slide and others) fall further and further behind. Other game developers have to either get in on the monetization or fall behind as well…The games that scam the most, win.”
The posts have generated a firestorm of reaction, from companies who provide the offers, such as Offerpal, who called the assertions “shit, double shit and bullshit,” to commenters who say they’ve been victimized by the offer scams. Companies who have participated, or who have been approached to participate in offer scams, have commented that this has been going on for awhile without much notice from the media or social media sites.
When drug companies are cited by the FDA for deceptive marketing, they lose 1% of market value on average, according to new research by Diana C. Robertson of Wharton and two colleagues. Harvard Business Publishing 10/22/09
Consumers are using the internet to find the best deals at retail outlets, toy stores and more “So what happens online, doesn’t always stay online in the new economy where deal hunting is driving buzz.” Nielsen Wire 10/23/09
Buzz about Christmas and holiday shopping on social media sites is down 3% year-over-year. This activity is in line with other research at Nielsen relative to retail expectations and consumers’ personal finances that indicate modest spending from a cautious consumer base. Nielsen Wire 10/23/09
Google (GOOG) has launched Campaign Insights, a tool to help marketers determine the incremental change that is directly attributable to online display ad campaigns on brand awareness and user interest. Available for larger display ad campaigns Campaign Insights goes traditional measures of clicks and conversions to calculate the incremental lift in both online search activity and website visits that result from a display ad campaign. BtoBOnline 10/23/09, Google AdWords Blog, 10/19/09
Disney (DIS) is offering consumers who purchased Baby Einstein DVDs their Money back. The Campaign for a Commercial-Free Childhood says the offer is the result of a complaint they filed with the FTC regarding Baby Einstein’s marketing claims. Baby Einstein says the offer is part of an upgrade package and has nothing to do with the CCFC FTC complaint.Brandweek 10/23/09
Fortune (FO) magazine is dropping from 25 issues a year to 18 in 2010, will undergo a redesign, and focus on more “long-form, deep-dive journalism, great narrative stories,” to gain cost savings and strategic advantage. New York Times 10/23/09
Through Lufthansa’s free MySkyStatus service, fliers on any airline can sign up to have their flight details posted automatically to their Facebook or Twitter profiles, including regular updates about their departure, altitude, location and arrival as they travel. Springwise 10/23/09
Beginning next Wednesday, New York-based daily newspaper, Newsday, will offer limited free content on Newsday.com. Only Newsday and Cablevision Optimum Online subscribers will still have full access; others will need to pay a $5 weekly subscription fee. Clickz 10/22/09
Financial services brands are less effective at building awareness and persuading consumers to become customers says researcher Dynamic Logic. The study says financial services online ads are too text-heavy and could benefit from adding images of people and including fewer details. Clickz 10/21/09
On Wednesday Google (GOOG) reportedly plans to announce a new service that will give users an easy way to learn more about and sample music after searching for information about bands, alsbums and songs. Facebook also plans to integrate music site Lala into its gift store. New York Times 10/21/09
Air New Zealand says their fares have nothing to hide, and to prove it they’re screening a new in-flight safety video featuring staff members and company chief executive, Rob Fyfe, clad only in body paint. Seatbelts, luggage and life vests provide "appropriate” concealment where needed. NYTimes 6/29/09
A “vicious industry wide slump” in the luxury hotel business has generated friction between the Four Seasons Hotels and Resorts management company and Four Seasons hotel owners with distressed profit margins. While some owners want to cut expenses, the Four Seasons resists the potential negative impact to the brand. BTW, did you know that Bill Gates owns nearly half of the Four Seasons Hotels and Resorts management company? NYTimes 6/28/09
LinkedIn says their survey asking translators if they would volunteer to translate the LinkedIn site was intended to develop a crowd sourcing model similar to Wikipedia’s legions of volunteers and provide increased exposure for the translators. The survey generated mixed results among translators, with some feeling it was an opportunity for increased work and exposure, while others felt LinkedIn was simply trying to get professional services for free. NYTimes 6/28/09
Acer is the world’s third largest seller of personal computers, and “appears poised to overtake Dell as the world’s second-largest seller of personal computers” this year. The company positions its four brands to cater to various consumer segments, such as eMachines for affordability. Other brands include Gateway and Packard Bell. NYTimes 6/27/09
Target (TGT) has rebranded its core commodities line — a product category that includes everyday items such as baby wipes, sunscreen, dryer sheets and plastic containers — under the name “up & up. The trend is consistent with an overall increase in store brands that are more profitable for the retailer and attractive to consumers who are “increasingly buying in-house brands to save money.” Atlanta Business Chronicle 6/25/09.
Yahoo (YHOO) is working to change its branding, with the new branding to be unveiled when it releases is new main home page design in the fall. Atlanta Business Chronicle 6/25/09
According to the third annual Deloitte LLP Ethics & Workplace survey, 60 percent of business executives believe they have a right to know how employees portray themselves and their organizations in online social networks.
However, employees disagree, as more than half (53 percent) say their social networking pages are not an employer's concern. This fact is especially true among younger workers, with 63 percent of 18-34 year old respondents stating employers have no business monitoring their online activity.Read more
According to VentureBeat, Facebook is running a test that enables advertisers to run a poll on a member’s home page. When the user answers a poll question they can see how their Facebook friends and other people have voted. The poll ads will begin running for CareerBuilder.com as part of a larger online and offline Super Bowl advertising campaign. Source: VentureBeat 1/27/09
iGO iWRITE, an application that enables the community of online travel aficionados to publish travel books created as a group, has been launched on Facebook. Users "can help edit, vote, and shape the direction of the final user-generated book." Topics of posted stories include worldwide destinations, hidden beaches, quirky small towns, hostels, ecotourism, and voluntourism. The end product, a blend of new and traditional media, will be a user-generated series of travel books available at Amazon and Barnes and Noble. Compleo 1/9/09
Social gaming companies are making hundreds of millions of dollars on Facebook and MySpace. But in a series of posts, 
As social networking grows increasingly pervasive, more employers are utilizing these sites to screen potential employees.
According to the third annual Deloitte LLP Ethics & Workplace survey, 60 percent of business executives believe they have a right to know how employees portray themselves and their organizations in online social networks. 
According to VentureBeat, Facebook is running a test that enables advertisers to run a poll on a member’s home page. When the user answers a poll question they can see how their Facebook friends and other people have voted. The poll ads will begin running for CareerBuilder.com as part of a larger online and offline Super Bowl advertising campaign. Source: 
iGO iWRITE, an application that enables the community of online travel aficionados to publish travel books created as a group, has been launched on Facebook. Users "can help edit, vote, and shape the direction of the final user-generated book." Topics of posted stories include worldwide destinations, hidden beaches, quirky small towns, hostels, ecotourism, and voluntourism. The end product, a blend of new and traditional media, will be a user-generated series of travel books available at Amazon and Barnes and Noble. 
