Traditional sports marketing and brand management is in transition. For years, the professional sports leagues have relied on radio and print newspapers to provide them free marketing. The leagues provided journalists open access to their games and in return sports writers would report on the games, the players, and the teams to their audience. This basic model worked for many years. When television became popular in the 1950's, the model was tweaked and the television networks started to pay handsomely for sports content. In the 1970's, Ted Turner once again tweaked the model via cable television.
Over the past several years, we have watched the beginning of the end of print media, a changing radio landscape and a transformation from watching television via cable to the Internet. This media transformation has changed the sports marketing and branding paradigm. Consumers have become extremely sophisticated and are tuning out traditional advertising. People do not want to be sold to. They want to engage in a conversation with a brand. Passion is the name of the game and the best medium to harness this passion is social media. Social media is not just the Internet. Social media is about interacting with a brand and feeling connected to it.
The top consumer cult brand is Apple. The unquestioned American sports cult brand is the NFL. Each of these organizations have spent years connecting with their followers. The NFL's cult brand has been forged by the "Greatest Game Ever Played," "The Ice Bowl," and players like the Baltimore Colts' Johnny Unitas and the Cleveland Browns' Jim Brown. Games and players come and go. However, the experiences that fans have with these events and the players is what keeps fans excited and interested in the NFL.
Social media is all about passion. When a Facebook user is excited or upset he posts to his Facebook wall. In response, the Facebook user's friends may engage in a conversation about the post. An excellent example of this interaction occurred on the Facebook page "Betty White to Host SNL (please?)!" Even though Betty White has been in the entertainment business for more than 60 years, she may end up being best remembered for how she became the host of an episode of Saturday Night Live.
Several months ago, a Betty White fan created a Facebook page requesting that Betty White host Saturday Night Live. The Facebook page's popularity grew to a point where Lorne Michaels, the creator of Saturday Night Live could not ignore it so he invited Betty White to host the show. NBC knew or should have known that the Betty White episode would have a built in audience that would enable them to sell the advertising for the episode at a premium. Betty White was hilarious on the show and it was a ratings success.
Brands need to learn how to engage with their customers. If companies understand how to properly utilize social media they will be able to better predict the success of their marketing campaigns. In addition, they will be able to fully leverage the value of their brands to others who want to be connected to them.
Unfortunately, too many companies think the answer to engaging social media users is to focus their strategy on posting on their Facebook wall, or tweeting about new product lines and sales, and building applications that capture a customer's private information. Congress is in the process of drafting new online privacy regulations that may limit or change how personal information is collected and utilized. Therefore, the current preferred method of obtaining a customer or a potential customer's data via an application when a customer visits a Facebook wall or clicks on a link may soon be obsolete.
In the Social Media Age, there is no substitute for interactive customer engagement. Building a cult following is achievable if your company is ready, willing, and able to create and follow a detailed strategy. To learn how to design and implement a successful social media sports marketing and branding campaign that will abide by the soon to be enacted Social Media Privacy Protection Act you may contact me at http://www.shearlaw.com/.
Copyright 2010 by the Law Office of Bradley S. Shear, LLC. All rights reserved.
Thursday, May 20, 2010
Saturday, May 15, 2010
FINRA's Social Media Regulations
Recently, I have been counseling members of the securities industry about the new Financial Industry Regulatory Authority (FINRA) social media regulations. During a meeting last week, I was asked what type of interaction is acceptable between a registered securities employee and a Facebook friend who also happens to be a client of the securities industry professional. I gave the standard line that lawyers are taught to provide, "it depends." There is no bright line definition of what is acceptable interaction so this is a major dilemma for securities firms, their employees, their clients, and prospective clients.
The lines between business and personal activities in social media are becoming more blurred every day. In 1999, NASD (FINRA's predecssor) stated that if a registered representative participates in an Internet chat room he is subject to the same requirements as if he was making a personal presentation to a group of investors. This statement was codified in 2003 by NASD's Rule 2210 when NASD included in the definition of "public appearance" the "interactive electronic forum" or as most users call it a "chat room".
In January 2010, FINRA's Social Networking Task Force created a Regulatory Notice to provide securities firms guidance on business related social media usage. Even though the Regulatory Notice does not provide guidelines on securities employees' personal social media use, it is highly advisable for most firms to create a social media policy for employees' personal use. Creating a social media policy for non-business activities may be considered very intrusive. However, social media is the most intrusive and interactive technology currently in widespread use so it is imperative that employees understand that sensitive work matters should not be discussed on both business and personal social media accounts. No two firms have the same corporate culture so adopting the business or personal social media policy of another firm without consulting your legal, IT, human resources department, and a social media professional is a recipe for disaster.
To learn more about creating a business and/or a personal social media policy for your firm you may contact me at www.shearlaw.com.
Copyright 2010 by the Law Office of Bradley S. Shear, LLC. All rights reserved.
The lines between business and personal activities in social media are becoming more blurred every day. In 1999, NASD (FINRA's predecssor) stated that if a registered representative participates in an Internet chat room he is subject to the same requirements as if he was making a personal presentation to a group of investors. This statement was codified in 2003 by NASD's Rule 2210 when NASD included in the definition of "public appearance" the "interactive electronic forum" or as most users call it a "chat room".
In January 2010, FINRA's Social Networking Task Force created a Regulatory Notice to provide securities firms guidance on business related social media usage. Even though the Regulatory Notice does not provide guidelines on securities employees' personal social media use, it is highly advisable for most firms to create a social media policy for employees' personal use. Creating a social media policy for non-business activities may be considered very intrusive. However, social media is the most intrusive and interactive technology currently in widespread use so it is imperative that employees understand that sensitive work matters should not be discussed on both business and personal social media accounts. No two firms have the same corporate culture so adopting the business or personal social media policy of another firm without consulting your legal, IT, human resources department, and a social media professional is a recipe for disaster.
To learn more about creating a business and/or a personal social media policy for your firm you may contact me at www.shearlaw.com.
Copyright 2010 by the Law Office of Bradley S. Shear, LLC. All rights reserved.
Thursday, May 13, 2010
The White House and Social Media Follow Up
On May 4, 2010, I mentioned in my blog post, "Will the White House's Use of Social Media Eventually Diminish Access to the President?" some of the legal, political, and societal ramifications if the White House moves away from fully informing the traditional press and instead utilizes social media to communicate directly to its constituents. The article "White House leaning on its Press Office, Not the Media, to Get Message Out" that was published on Foxnews.com today discusses some of the issues that I blogged about last week.
It appears that traditional media outlets are starting to now agree with my observation that the White House is trying to bypass the traditional media in favor of social media. The White House is changing its social media strategy because this modification enables the administration to bypass the traditional media's filter which may determine how people analyze the President's policies. The President's staff appears to be duplicating its successful campaign strategy. Traditional print media is on the verge of extinction. Traditional radio and television media is in transition. Unless these traditional media outlets adapt to the social media age they will go the way of the dodo bird.
To learn more about about social media you may contact me at www.shearlaw.com.
Copyright 2010 by the Law Office of Bradley S. Shear, LLC. All rights reserved.
It appears that traditional media outlets are starting to now agree with my observation that the White House is trying to bypass the traditional media in favor of social media. The White House is changing its social media strategy because this modification enables the administration to bypass the traditional media's filter which may determine how people analyze the President's policies. The President's staff appears to be duplicating its successful campaign strategy. Traditional print media is on the verge of extinction. Traditional radio and television media is in transition. Unless these traditional media outlets adapt to the social media age they will go the way of the dodo bird.
To learn more about about social media you may contact me at www.shearlaw.com.
Copyright 2010 by the Law Office of Bradley S. Shear, LLC. All rights reserved.
Tuesday, May 4, 2010
Will the White House's Use of Social Media Eventually Diminish Access to the President?
Social Media is here to stay. In fact it may become the dominant form of communication in the near future. The legal, political, and societal ramifications are tremendous. President Obama utilized social media to get elected and his administration is using social media to actively engage with the American people and the rest of the world. For example, the White House has an official Twitter account and is currently looking for a Twitterer-In-Chief. White House spokesman Robert Gibbs recently stated that Twitter is an amazing tool.
The White House has about 1.75 million followers and follows just 99 other accounts. However, if you look closely at who the White House follows you will see that it mainly follows other U.S. government entities. It also follows 10 Downing Street, aka the British Prime Minister's office. Why doesn't the White House follow more governments, both friend and alleged foe? Is the White House intentionally keeping the number of accounts it follows in double digits?
The White House also has an official blog. Will the official White House Blog soon replace press releases since a blog is a de facto press release mechanism. I am wondering if the President's weekly radio address and daily press briefings will soon be replaced by the pre-recorded podcast. From the White House's own website you can watch official presidential events via audio or video podcast.
In the future, a majority of the population may rely solely on social media as their news gathering resource. During a major political crisis will the White House turn mainly to social media to get its message out and stop the daily press briefing? Will the current or a future President decide to stop the traditional daily briefings and instruct the White House Press Secretary to utilize daily interactive webinars? Will the White House limit the media's access for political purposes? The First Amendment and freedom of the press issues that are intertwined with social media and politics are mind boggling. To learn more about these issues you may contact me at www.shearlaw.com.
Copyright 2010 by the Law Office of Bradley S. Shear, LLC. All rights reserved.
The White House has about 1.75 million followers and follows just 99 other accounts. However, if you look closely at who the White House follows you will see that it mainly follows other U.S. government entities. It also follows 10 Downing Street, aka the British Prime Minister's office. Why doesn't the White House follow more governments, both friend and alleged foe? Is the White House intentionally keeping the number of accounts it follows in double digits?
The White House also has an official blog. Will the official White House Blog soon replace press releases since a blog is a de facto press release mechanism. I am wondering if the President's weekly radio address and daily press briefings will soon be replaced by the pre-recorded podcast. From the White House's own website you can watch official presidential events via audio or video podcast.
In the future, a majority of the population may rely solely on social media as their news gathering resource. During a major political crisis will the White House turn mainly to social media to get its message out and stop the daily press briefing? Will the current or a future President decide to stop the traditional daily briefings and instruct the White House Press Secretary to utilize daily interactive webinars? Will the White House limit the media's access for political purposes? The First Amendment and freedom of the press issues that are intertwined with social media and politics are mind boggling. To learn more about these issues you may contact me at www.shearlaw.com.
Copyright 2010 by the Law Office of Bradley S. Shear, LLC. All rights reserved.
Saturday, May 1, 2010
Goldman Sachs, the Shitty Deal, and Social Media Public Relations
Goldman Sachs is the most respected name on Wall Street. The firm has no peers. If you ask any college or graduate business school finance major where they want to work a large majority would respond without question, Goldman Sachs.
In an article from the New York Times a couple years ago, the firm was nicknamed "Government Sachs" because so many of its employees end up working for the U.S. government. Some prominent Goldman alumni include: former Treasury Secretaries Henry Fowler, Robert Rubin, Hank Paulson, and current World Bank President Robert Zoellick, and former U.S. Senator Jon Corzine.
In general, Goldman Sachs senior executives shy away from publicity while working for the firm. This strategy has helped create a mystic about the company. Social media has forever changed the public relations game. Goldman Sachs' reputation was tarnished this past week in a manner that would not have been possible before the age of social media.
It is very rare for members of Congress to use foul language in any context during televised proceedings. However, Senator Carl Levin chastised Goldman Sachs because an employee of the firm had stated in an internal email that a collateralized debt obligation called Timberwolf I that Goldman was selling was a "shitty deal." Senator Levin persistently asked about and berated Goldman Sachs about the "shitty deal" numerous times throughout the hearings.
Goldman Sachs EVP and Chief Financial Officer David Vinair's testimony will forever live on in social media due to the interesting exchange that occurred between himself and Senator Levin. When Senator Levin grilled Vinair about the "shitty deal" internal Goldman Sachs email Vinair stated, "I think that is very unfortunate to have [that comment] on email." It sounded as though the entire audience was stunned by that statement and then a delayed laughter was heard in the background. Vinair later corrected himself but the damage had already been done.
As Gretchen Morgenson of the New York Times has pointed out and last week's hearings clearly demonstrated there are so many conflicts of interest on Wall Street. These conflicts have been around for years. Lawyers are not allowed to have these types of conflicts so why are the "Masters of the Universe" allowed to have these types of conflicts?
These hearings come on the heels of last week's SEC fraud complaint against Goldman Sachs and one of its employees. In addition, President Obama and Congress are also currently battling over a financial regulatory overhaul. The Goldman Sachs testimony that I watched reminded me of the movie Wall Street and Gordon Gekko's "Greed is Good" speech because some of the Goldman Sachs employees who testified sounded as though they were about to utter Gekko's line that "greed for a lack of a better word is good. Greed is right. Greed works."
Goldman Sachs has weathered numerous scandals and controversies during its 140+ years in existence. Each time the firm has rebounded and come back stronger than ever. The company may be one of only a few brands that may be immune to the social media age. Even though the brand may not suffer in the long run, there will be employees who are scapegoated to protect the firm's image. Therefore, in the social media age, lawyers need to be well versed in not only the legal matters before them but how their clients may be perceived on social media. To learn more about this issues you may contact me at www.shearlaw.com.
Copyright 2010 by the Law Office of Bradley S. Shear, LLC. All rights reserved.
In an article from the New York Times a couple years ago, the firm was nicknamed "Government Sachs" because so many of its employees end up working for the U.S. government. Some prominent Goldman alumni include: former Treasury Secretaries Henry Fowler, Robert Rubin, Hank Paulson, and current World Bank President Robert Zoellick, and former U.S. Senator Jon Corzine.
In general, Goldman Sachs senior executives shy away from publicity while working for the firm. This strategy has helped create a mystic about the company. Social media has forever changed the public relations game. Goldman Sachs' reputation was tarnished this past week in a manner that would not have been possible before the age of social media.
It is very rare for members of Congress to use foul language in any context during televised proceedings. However, Senator Carl Levin chastised Goldman Sachs because an employee of the firm had stated in an internal email that a collateralized debt obligation called Timberwolf I that Goldman was selling was a "shitty deal." Senator Levin persistently asked about and berated Goldman Sachs about the "shitty deal" numerous times throughout the hearings.
Goldman Sachs EVP and Chief Financial Officer David Vinair's testimony will forever live on in social media due to the interesting exchange that occurred between himself and Senator Levin. When Senator Levin grilled Vinair about the "shitty deal" internal Goldman Sachs email Vinair stated, "I think that is very unfortunate to have [that comment] on email." It sounded as though the entire audience was stunned by that statement and then a delayed laughter was heard in the background. Vinair later corrected himself but the damage had already been done.
As Gretchen Morgenson of the New York Times has pointed out and last week's hearings clearly demonstrated there are so many conflicts of interest on Wall Street. These conflicts have been around for years. Lawyers are not allowed to have these types of conflicts so why are the "Masters of the Universe" allowed to have these types of conflicts?
These hearings come on the heels of last week's SEC fraud complaint against Goldman Sachs and one of its employees. In addition, President Obama and Congress are also currently battling over a financial regulatory overhaul. The Goldman Sachs testimony that I watched reminded me of the movie Wall Street and Gordon Gekko's "Greed is Good" speech because some of the Goldman Sachs employees who testified sounded as though they were about to utter Gekko's line that "greed for a lack of a better word is good. Greed is right. Greed works."
Goldman Sachs has weathered numerous scandals and controversies during its 140+ years in existence. Each time the firm has rebounded and come back stronger than ever. The company may be one of only a few brands that may be immune to the social media age. Even though the brand may not suffer in the long run, there will be employees who are scapegoated to protect the firm's image. Therefore, in the social media age, lawyers need to be well versed in not only the legal matters before them but how their clients may be perceived on social media. To learn more about this issues you may contact me at www.shearlaw.com.
Copyright 2010 by the Law Office of Bradley S. Shear, LLC. All rights reserved.
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