Companies and other businesses who have shown interest in pursuing social media marketing must be made aware of certain developments at the federal level before going through on that front.

Jon Leibowitz, chairman of the Federal Trade Commission, says the efforts of online marketers have “fallen short” to create a do-not-track mechanism, through a 120-plus page report. The efforts, the report describes, have been overly-complicated for consumers to opt-out of being tracked for marketing information, as well as other self-regulatory efforts.

On the night before he is scheduled to testify before a congressional hearing, Leibowitz and the FTC have called for markets to voluntarily create a user-friendly mechanism that would allow consumers to easily opt-out of data collection.

The reports detailed the marketers efforts to self-regulate and described them as being slow and failing to “provide adequate and meaningful protection.”

It has been over two years since FTC first called for online marketers to provide a clear and concise way for consumers to opt out of data collection, and as it would appear, those calls have fallen by the wayside. Now, the congressional hearings are being called in.

Before being called in from of a congressional committee. Leibowitz expressed his dissatisfaction with the marketers self-regulatory initiative and said, however, that he and the FTC are not calling for privacy regulations, but are not opposed to supporting legislation in the future should it come to that.

In a roundabout way, an ultimatum has been set by the FTC, that it’s been too long and things need to change.

If you are a business or company moving towards online marketing, the FTC is looking for two things – an opt-out mechanism, and that that mechanism is user-friendly.

Some companies have responded and have gotten out ahead of any prospective legislation, most notably Mircosoft, which has included an opt-out function for its latest version of Internet Explorer.

Buzzphoria passionately believes that companies must carefully monitor where and when their messages appear online. We adhere strictly to the Word of Mouth Marketing Association’s (WOMMA) Code of Ethics along with those set fourth by the Public Relations Society of America (PRSA), as well as our own sense of keeping our clients’ best interests in mind.

Businesses that wish to take advantage of the social media space in their marketing strategies should be aware of recent developments in the courts with regards to the privacy and confidentiality in online sites. In these cases, unsuspecting site users have had their private conversations violated by site owners, who furthered their own interests by passing along valuable user information, navigation habits etc. to outside marketers.

In March of this year, judgment was handed down in the Facebook privacy lawsuit – the “Beacon Settlement,” in which user information was leaked to advertisers via banner ads – which resulted in Facebook being levied a $9.5 million fine. Furthermore, the court stipulated that Facebook set aside $6 million for the purpose of setting up a foundation, to be headed by a three-person board, tasked with ensuring the privacy of information for Facebook users.

It would appear that the online privacy issues have been resolved with social media users free to Twitter and post at will without fear of private conversations being violated.

However, the judgment which was levied down brings with it its own liabilities. The Facebook privacy foundation will be helmed by Tim Sparapani, the current Facebook director of public policy, which has led critics to call this a conflict of interests. In fact Ginger McCall, a lawyer for the Electronic Privacy Information Center, filed an appeal in the U.S. 9^th Circuit Court, calling the settlement “deficient and illusory.”

In addition, lawsuits have been filed against social media networking sites MySpace and Google Buzz for similar lapses in user privacy. MySpace applications – including TagMe, GreenSpot and RockYou Pets – have allegedly been passing user information to its advertisers.

Buzz – Google’s social networking service – has been charged with passing along personal information that might be held in a user’s Gmail account, making it public, and releasing what was confidential information if users did not specifically change the default settings. Google was recently forced to pay $8.5 million in damages.

Critics like McCall have lampooned the courts decisions, saying the penalty award amounts are misleading with only a small percentage of the damages go to the individual users who filed the lawsuits with the bulk going toward watchdog foundations.

Google admitted the February launch of Buzz was premature. But critics knew about these allegations beforehand and called Google out on its services deficiencies, but they continued with the launch anyway. This brings into question the security of social media more than ever. It is one thing when sites are passing consumer information to advertisers, but it is quite another when the safety of your confidential and personal information is jeopardized.

Even though a precedent has stemmed from these cases, McCall and others are left unsatisfied, even with millions of dollars made in settlements. They wish to go further and set additional legal precedents that will protect the privacy of social network users by having the site that violates those laws face serious penalties.

Buzzphoria believe that companies must carefully monitor where and when their messages appear online. We adhere strictly to the Word of Mouth Marketing Association’s (WOMMA) Code of Ethics along with those set fourth by the Public Relations Society of America (PRSA), as well as our own sense of keeping our clients’ best interests in mind.

Microsoft announced recently a partnership with Facebook that would take the first step of a long-sought after goal to integrate social media and Internet search. Microsoft Bing will allow users to enter search terms and view responses as well as feedback from matches to those searched items from their Facebook “community.” For example, if someone should entering their Bing a search for a steakhouse, they might find several names of places in the area, but they will also find that a number of their friends have “liked” a specific steakhouse on their Facebook page. This has been a goal of search engines for some time and this marks the first step being taken in a new front of social media marketing.

You better believe that companies are taking that front very very seriously. Crown Imports EVP, which brings in Corona Beers, has launched a campaign centered around Corona Light to make it the most “Liked” beer on Facebook. Crown has purchased a large electronic display in New York’s Time Square urging people to “Make Us The Most Liked.” Not to buy Corona Light or drink Corona Light, but to make them the most liked on Facebook. To sink serious money into an advertising program such as that adds to the validity of the social market. Corona Light ranks eighth among light beer sales, but has risen in consumer sales since August while its competitors – Bud Light, Miller Light, Coors Light etc. – have declined in sales. And this is something that for certain will continue. If an average conusmer is sitting at home some night and is going to look for a movie to go see, he or she might go on Bing and check show times. If that person sees that 15 of their friends have seen and “liked” The Social Network, then they might be inclined to go see that.

Of course this brings into question the protection of personal information displayed on Facebook and other social media site – something which already has brought into question in the past. However, Mircosoft and Facebook, both, of course, have stated that personal information will not be taken or pulled or pirated or used. But with all that aside, this major push from a top company brings to the forefront the importance advertiser and companies alike are putting on social mediums, and how that is now paying off. Now, however, it will become on more important on more of a micro level with seeking after “likes.”

Buzzphoria will take that initiative and plan with the companies from the start to create a plan – a social media marketing strategy – whether it be gather “likes” on face to increase search engine optimization. Do you want your company to come up on the first page of a Google or Bing search? Who doesn’t? Of course an increase in exposure will get you company’s name on the mind of the consumer, but just where is that consumer located?

In our last post we covered To Blog or Not to Blog. In that post we mentioned that too many brands and corporations take a Field of Dreams approach to creating a blog believing that just because they build it the audience will come.

A report in the Wall Street Journal, noted the effect of adding a blog to a web site: unique site visitors increased from 100 per month to 150,000 per month; total sales increased 18 percent; web-site generated sales increased to 25 percent of referrals, up from a mere one percent.

The Wall Street Journal article also suggested that a blog can be more important than having a web site.

While we agree that blogs can be an important component of a brand’s marketing mix, we feel that it would be reckless for a brand or company to depend solely on the blog as their online marketing initiative. A blog is a great tool if properly planned and executed, however, if there is no voice, no plan and no audience it can also fall into the proverbial tree falling in the forest argument…

Creating a blog can be inexpensive when free blog sites such as Google’s Blogger.com (www.blogger.com). And while no one can promise that using Google’s blog site will get your blog a better listing in a Google search, it just seems like common sense that it would be a plus.

Other free blog sites include Wordpress.org (www.wordpress.org), LiveJournal.com (www.livejournal.com), and . . . we’ll stop here, because any list will be sure to omit the one blog site that someone thinks is the best blog site on the web. But that’s one of the great things about a blog: readers add value by posting comments. So, let the debate begin over the best place to be blogging. Or whether Blogger.com earns better positioning in a Google search.

But back to business . . . your business.
 
Why Blog?

A blog is alive.

A web site is static.

A blog is fresh, it’s now: content with a “born on” date.

A web site is like . . . that jar of peanut butter of an unknown vintage, lost in the back of the pantry.  Contaminated with salmonella? Who knows how long it has been sitting.
 
A blog engages the reader by empowering each reader to post comments.

A web site is mere dictation . . . dictatorially delivered.

A blog collects consumer feedback . . . in a place where your business can respond, especially to show the world you care about satisfying any unhappy customer.
 
A web site may invite an email or phone call, but can fail miserably at enabling you to show the world you care and do deliver excellence in customer service.

Updating a blog is as easy as posting your latest text, pics, or video to the blog.

Updating a web site? Unless you’re technically savvy, you’ll be writing text and a check with every little update.

A blog allows you to show your expertise. With this blog, Buzzphoria aims to illustrate details about our being our own best case study while at the same time showing how your business can use digital marketing strategies to enhance your bottom line.

To help stimulate the discussion, Buzzphoria will continue, intentionally, to do some things wrong, while unfolding all the elements of endgame and “we are our own best case study” illustration . . . and, we invite readers to demonstrate their informed opinions on the better way to achieve marketing success in this space. Uncensored.

Coming soon: What is a social media reality check? and What happens when your brand gets hijacked.