Posts Tagged: Celebrity Endorsements

Should Influencers Influence Cause Marketing?

To use or not to use a popular marketing tool?  That is the question.  Shakespeare, himself, opted for a popular marketing tool when he cast the famous tragedian, Richard Burbage, for the part of Hamlet.  This was probably a good idea, since according to Wikipedia, the play “has been performed many times since the beginning of the 17th century.”

Engage for Good recently posted “Statistics Every Cause Marketer Should Know.”  The numbers confirm that cause marketing is big, popular, and works.

What studies also show is that cause marketing works when it is genuine and credible.  There is a trust established between the consumer and the brand.  An implicit (or explicit) promise from the brand that its intent is to “do good.”  But the question for brands now more than ever is how to get the word out, and specifically, would a social media influencer’s influence influence the millennials who you want to influence?

Nearly 40% of Twitter users say they’ve made a purchase as a direct result of a Tweet from an influencer.”  70% of YouTube subscribers trust influencers’ opinions over celebrities.  And according to one study, on average, businesses generate $6.50 for every $1 spent on influencer marketing! (more…)

Please follow and like us:

Please Don’t Endorse Our Product Anymore: The Morals Clause Edition

Unless you’ve Rip Van Winkled for the past month, lost your television/iPhone/iPad, or simply given up on international competitive athletics to instead focus on the Cubbies’ chase for an elusive World Series Crown, you know that US Olympic Swimmer Ryan Lochte’s “over exaggeration” will cost him over $1 million in endorsement deals. While his contracts with these brands are secret, we can suppose that he’s out because a morals clause was in his contracts.    

A “morals clause” is standard in any endorsement contract. The Court of Appeals for the Second Circuit has said: “Morals clauses have long been held valid and enforceable.” Nader v. ABC Television, Inc., 150 F. App’x 54, 56 (2d Cir. 2005). The seminal case that triggered morals clauses in the entertain industry was that of Roscoe Arbuckle (better known by the improper body-shaming sobriquet “Fatty”), who in 1921 after inking a 3-year/3-million contract with Paramount was arrested on rape and murder charges. While his contract did not have a morals clause, Universal Pictures soon made sure that their talent contracts did. Soon after, moral clauses were often used – and upheld – in the 1950s by Hollywood studios to fire suspected communists. More recently, the issue of moral clauses was raised with Tiger Woods, Charlie Sheen and boxer Manny Pacquiao who lost his lucrative deal with Nike. Nike had also previously broken ties with athletes Lance Armstrong, Ray Rice, Adrian Peterson and Oscar Pistorius for their morally-challenging conduct. (more…)

Please follow and like us:

Where’d You Get That Dress? FTC Dresses Down Lord & Taylor Native Advertising

This week the FTC settled charges against Lord & Taylor from alleged deceptive native advertising during its March 2015 Design Lab social media campaign. http://1.usa.gov/22h3sJ7 A big takeaway from this settlement is the FTC’s position that a company not only has to comply with the Native Advertising/Endorsement disclosures on its own social media platforms, but also has to ensure (by contract and monitoring) that its paid endorsers make the requisite disclosures on their own social media posts.

For its sales campaign, L&T focused on one product, the Paisley Asymmetrical Dress, to flood the Internets. The native advertising included:

  • L&T gave the Dress to 50 select fashion influencers (what a job!) who were paid $1,000-$4,000 to post pictures of themselves on Instagram wearing the Dress. By contract, L&T required them to use “@lordandtaylor” and “#DesignLab” in the posts. The contract did not require the influencers to disclose in their postings that they had been compensated by L&T. L&T pre-approved each of the posts to ensure use of the user designation and hashtag. None of the posts had any endorsement disclosure and L&T did not add any.
  • L&T contracted with the fashion magazine Nylon to run an article with a picture of the Dress, which L&T pre-approved. L&T did not require Nylon to disclose the relationship in the article.
  • L&T also contracted with Nylon to post a picture of the Dress on Nylon’s Instagram page; again, no disclosure requirement.

The campaign was a huge success; it reached 11.4 million Instagram users and produced over 300,000 brand engagements; and the Dress sold out in days. But while women everywhere said yes to the Dress, the FTC said bad to the ads. (more…)

Please follow and like us:

Did Peyton Manning Go One Pitch Too Far? (Native Advertising at the Super Bowl)

We all know Peyton Manning – he’s a professional pitcher: for Papa Johns, DirecTV, Buick, and Gatorade, among others. He’s also a professional quarterback. But did his post-Super Bowl pitches for Budweiser and Papa John’s go too far. As you may recall loyal followers of this blog, I wrote in December about the new FTC Native Advertising Rules. In particular, how the FTC was looking for transparency when an advertisement is slyly placed so as to appear to be part of the medium itself.

Take a look at Peyton’s hug with the Papa John himself and his comment about Budweiser made on national television immediately after the Bronco’s Super Bowl win. Papa John’s: https://www.youtube.com/watch?v=C2vYkY4z4Z8. Budweiser at 1:17: https://www.youtube.com/watch?v=AfNOvDZiieE (more…)

Please follow and like us:

10 Things You May Not Have Known About Promotion Marketing

1. Practically every type of promotional activity is regulated in some way:
a. Sweepstakes and contests
b. User generated content on websites and social media;
c. Coupons, gift cards and money-back guarantees;
d. Charitable solicitations;
e. Celebrity endorsements or other testimonials;
f. Marketing to children; and
g. Even trying to give something away for “free”

2. You need official rules for every sweepstakes and contest you conduct. They form a binding contract with the entrants that will help protect you in the event of a dispute.

EXAMPLE: When Kraft mistakenly produced too many winning game pieces for its “Ready to Roll” sweepstakes, they were protected by having a clause in the rules stating they were not liable for printing or production errors. (more…)

Please follow and like us: