NEWSLETTER #99 / Jan 28, 2018
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FRAUD IN SOCIAL MEDIA? GET OUTTA HERE!
Well, well, well. The venerable New York Times did a major story on fraud in social media -- specifically Twitter -- this week. It was a very well done story. But here's the thing... how in the world has it taken major media a decade to understand what's been going on?
Idiot bloggers (ahem) have been writing about this for years. I can almost understand how marketing imbeciles bought all the horseshit about social media marketing because they're...well, they're imbeciles. But journalists are usually smart.
Anyway, read the piece in the Times if for no other reason than it will confirm all your worst suspicions about how corrupt and fraud ridden social media and influencer marketing are.
Ignorant marketers and their pathetic agencies pay tens of thousands of dollars for famous social media "influencers" with millions of "followers" to tweet about them. Except the "followers" are bots that the influencers buy for pennies from fraud houses. And the influencers are influencing nothing but the budgets of the knucklehead marketers who fall for this crap. No you can't make this up.
Want to become a famous social media influencer and exact thousands from brainless marketers? Here you go.
The wonderful thing is that nothing will stop these marketing doofuses and social media agencies from continuing to flush zillions of dollars down the online rat hole. You see, they sold this nonsense to their bosses and clients and now they have to defend it. It's the best show in town.
Meanwhile, following on The Times story, the great state of New York is making a big fuss about prosecuting some of these social media fraudsters. I guess there's nothing wrong with that but social media fraud is not even an icicle on the tip of the iceberg. Ad fraud is way worse. Billions are being stolen from excruciatingly dumb advertisers by online ad fraudsters and no one's doing a damn thing about it.
AGENCY REVIEW CHAOS
Unsurprisingly, the agency business has become very unstable. In 2016 an unprecedented amount of agency media billings went into review -- over $25 billion. It was called "Mediapalooza." This year looks to be even wilder.
It is still January and according to industry sources over $10 billion in agency billings are already up for grabs.
Marketers reviewing agency relationships include some of the world's most prominent - Coca-Cola, P&G, Shell, Mars and Dish.
One of the likely outcomes of all this agency musical chairs is further pressure on global agency holding companies' revenues.
It's my belief that there are 3 major reasons for this turmoil.
First - as noted above - is the agency industry's squandering of their credibility, and their clients' money, in a corrupt and fraudulent online ecosystem that has brought them nothing but scandals, disrepute and distrust.
Next is marketers' inability to develop sensible strategies and to demonstrate the maturity and patience it takes to allow them to develop. They jump from one short-term tactic to another chasing every new fad that comes along. And when it doesn't pay out they blame the agency. Or have you forgotten emojis and Pokémon Go?
Third is marketers' compulsion to squeeze agencies for lower fees. They know that agencies will bend over for major new accounts. Also, the best way to squeeze agencies is through threats -- either actual or implied. An agency review is the threat that never fails to pay off.
Meanwhile according to MediaPost, Michael Roth, ceo of IPG, the world's 4th largest agency holding company, says that ad industry woes are "overblown." I'd have to say that Mr. Roth's sense of peril is underblown.
Well, That Didn't Take Long
Last week I wrote about Twitter sending emails to 700,000 people explaining that they had been scammed by Russian intelligence during the 2016 election. I commented that..."there will be a few days of hot air and absolutely nothing will change."
This week it was reported Twitter was the source of a new bogus operation by Russian operatives promoting a political cause with a hashtag that spiked by 233,000% in 48 hours. I rest my case.
BTW, Twitter's reaction to the New York Times social media fraud story mentioned above? “The tactics ... violate our policies and are unacceptable to us.” Ya gotta laugh to keep from crying.
Top Story Of The Week
Dateline Maui, Hawaii -- Saturday. Wailea Emerald Golf Course. Hole #8. Par 3, 103 yards. Lob wedge. Hole-in-one.
Private lessons now available.
