Transparency in Social Media Marketing

Word of mouth marketing has always had value to companies. As social media continues to gain popularity, those conversations are reaching further — faster — than ever before. With paid product placement in social media, though, users begin to wonder what’s authentic and what’s a clever marketing campaign.

Image: sxc.hu

Right now it can be challenging to figure out what’s sponsored content and what is not. Some social media users are up front about any relationships they have with companies. Others aren’t so forthcoming. And if users are not clear about relationships, then those who follow them are going to wonder if they should trust the person blogging, tweeting, or linking items on Facebook.

If you’re using a well-connected social media user to promote your product, and neither of you disclose your relationship, you could face some fallout when that relationship is revealed. Personal experience with a product or service means a lot to people. But if it is conjured, untrustworthy, or in any way doesn’t seem authentic, potential customers will run in the other direction. They won’t trust you or your promoter.

The best way to work in social media is to disclose, disclose, disclose. Let potential customers know that you offered products or services in return for feedback. Or that you paid someone for their time, regardless of whether the resulting review is positive or negative. Be transparent in your dealings with social promotion. You’ll show that you trust your customers to make a decision based on honest reviews, not manufactured positive press.

Do you insist that your social media marketing is transparent? Do you disclose when you’ve paid for placement or reviews? Why or why not? If you didn’t disclose, has it ever backfired on you? I’d really like to hear some thoughts on this, even if you feel the need to be anonymous to do so.