Social media marketing affinity fraud
posted by Dave Allen, 20 Comments

Manti Te’o Image: Michael Conroy/Associated Press
Ok, that title may be a bit of a poke. In all honesty I want to begin a conversation about bubbles. There, that softened it right?
In my 2012 year end post I mentioned bubbles – discipline zones that include a cohort, the double-sided adhesive tape of affinity. In the commencement speech he gave at his Alma Mater, David Foster Wallace highlighted the particular bubble of academia:
“There are these two young fish swimming along and they happen to meet an older fish swimming the other way, who nods at them and says, “Morning boys. How’s the water?” And the two young fish swim on for a bit, and then eventually one of them looks over at the other and goes, “What the hell is water?”
Wallace uses that little parable to challenge how Liberal Arts school students become institutionally self-centered.
Ideas for these posts of mine tend to arrive out of thin air, yet I’ve been frustrated by the idea of social media marketing for years, and I’ll be the first to admit that I’ve been useless at finding a way to express myself clearly on why that is. I’m only trying again since I’ve discovered that my favorite blogger has issues with bubbles too… (so maybe not entirely out of thin air this time.)
That link will take you to The Conscience of a Liberal, a blog written by the economist and Nobel Laureate, Paul Krugman. Now let me be clear, I am not in any way attempting to align myself with such a great thinker as PK as his talents far outstrip mine. No, it’s just that when you deliberately get beyond your own bubble and study and research disciplines outside your safety zone, you’ll often find parallels to your own thinking. For me in this case, Krugman’s post titled Fiscal Affinity Fraud. I’ve become an economic policy wonk.
Here’s the opener to Krugman’s post: “Innocent that I am, I never heard the term “affinity fraud” until the Bernie Madoff affair hit the news. But once you hear it, the concept is obvious: people are most easily conned when they’re getting their disinformation from someone who seems to be part of their tribe, one way or another. And I found myself thinking about that reality when the predictable reaction to today’s column came in: irate and, I believe, sincere if often incoherent voice mails etc. declaring that I must be an idiot, evil, or an evil idiot for saying that the budget deficit isn’t a big problem. They know that I’m completely wrong.”
Let’s not get carried away here. The first half of the paragraph above is about being conned by financial hucksters, e.g. Bernie Madoff, ergo I am not suggesting that the parallel is social media “experts” are conning us (but now I think about it…) The second half is closer to what I’m aiming for, where I paraphrase this line as so – when everyone is right, absolutely right, that social media marketing must be an imperative and an unassailable construct as part of an overall brand strategy. Even if it doesn’t work. So the stand out phrase, with a small edit by me is: “people are most easily persuaded when they’re getting their disinformation from someone who seems to be part of their tribe.” The social media marketing cohort in other words.
The self-centered worldview of social media marketing consistently leads marketers into the same inescapable maze. And it traps others too. Just yesterday I came across the Content Marketing Institute’s site. Nothing wrong there, just the usual stuff, lots of information for content strategists and a list of posts with search-friendly titles on the homepage. What caught my eye was the opening line to a post titled Content Marketing Strategies for Social Media: Trends vs. Hype. And the line was: “These days, it’s tough to talk about content marketing without talking about social media.” And that gave me pause. I’m going to get meta here – was the post title and the opening sentence the main reason for writing the post? Does the title “social media: trends vs hype” create such great SEO results that the very people who make a living promoting social media marketing click through to the post completing the insular circle, the double-sided adhesive tape effect? I believe the answer is yes it does. And I say yes because if the post’s author was honest she wouldn’t have a post to publish – it’s not actually tough to discuss content marketing without discussing social media.
To be fair, the post included two quotes that show those quoted are analyzing what’s going on in the B2B social media marketing world:
1. Marketers are using channels because they can, not because they make sense
I’m finding that the majority of clients are focusing on where; that’s all they care about. They want to know where they need to be; and I say, ‘STOP! We don’t know where you should be. Let’s figure out who, and what. Who do we want to talk to, and what do we want to say? Once we figure that out, then we know where they are.’ So maybe it will work, B2B for Facebook, or maybe it won’t; I think the increase of Facebook is just because it’s easy.” – Michael Weiss
2. Not all channels require the same kind of content
I look at how many B2B clients that I see who automatically drive their Twitter posts to Facebook, and it’s harsh when you see it in the wrong format.” – Carla Johnson
No one said paradise would be easy.
There have been many bubbles before, ones that have been routinely ignored. In our recent history we’ve had the housing bubble in 2007 which led to an economic collapse that led to a depression, and the Dot Com bubble-burst in the early 2000′s. And yet our memories fail us.
I’m going to go out on a limb and say that the social media marketing bubble will burst soon enough.
January 19th, 2013 @ 2:23 pm
The bubble is about to burst because no one EVER knew what the eff they were doing in and with social media. Not the big agencies, not the little guys and not the users.
The same SEO people from years ago are now content marketers looking to exploit Google’s algorithm in any way they can.
On another note. isn’t this kind of marketing a Ponzi scheme in itself? They’re not selling what they produce, they always require a larger audience to stay “successful” and getting out (or deleting shitty backlink farms that no one will admit to ever running) could have drastic consequences on the entire system.
You can’t monetize human interaction and your sure as hell can’t digitize empathy.
January 20th, 2013 @ 1:03 pm
Point well made about bubbles and if you trace the etymology of the word ‘bubble’ back to its first appearance in english with Shakespeare’s Macbeth you discover that it never had a sterling reputation:
Double, double toil and trouble;
Fire burn and cauldron bubble.
Three witches cooking up trouble for Macbeth kinda says it all. Or does it? Krugman’s assertion is true that affinity is used to support arguments that otherwise have no merit whatsoever, but that’s not the case with the ill-termed phenomena of ‘social’ media.
The way I look at it that word ‘social’ is applied to digital media within a business context in an almost ironic way as if to suggest that enterprises can no longer count on cloaking themselves in anonymity behind an opaque pay wall. Forcing grey suited men to be social with their customers seems like a worthy enough goal alone even if (and this is where the irony comes in) it amounts to revealing that many of these corporate honchos are virtual sociopaths with no social skills to speak of.
Okay I admit it, ESPECIALLY if it amounts to . . .
Tyler’s response makes some good points but let’s pause before we cast ALL the proverbial money-changers out of the temple. Brian Solis is, I think, a credible voice apart from the bubble’s usual cast of carpetbaggers. He understands that you can’t market effectively within digital networks of potential customers without the enterprise itself going under fundamental re-structuring (at least culturally). I give him points for the honesty to say that, for most of the big-money marketers out there, social media is a non-starter.
Sure, he makes a few bucks out of telling them that, knowing some of them are always willing to give it the old college try. Disclaimer: I made a good living in the last tech bubble helping archaic institutions that were determined to get on the ‘desktop’ of other businesses. Mostly they were unable to get their heads around it but I learned from all attempts and so did the larger business culture. Brian also does tend to succumb to affinity from time to time when he gets together with others in the game by succumbing to a superficial historicism to justify the consensus on current conditions but that is something we are all guilty of no matter what side of the argument we are on.
For example “You can’t monetize human interaction . . .” is a pithy statement to close on but if I think about it I would counter with, “Oh yeah, but sex (human interaction) definitely sells and with liquor the sale is even quicker.”
Nothing fixes ones attention on the present circumstances like the need to get paid. No doubt most of those working the current bubble view social media as a means to that profitable end. The truth about social media is probably a lot more prescient than present. The corporate cultures that will benefit from a socially open business culture probably don’t exist yet or if they do they were formed recently within the social media sphere and currently exist as some lame offering on Kickstarter that will, at some date in the future, make its contributors (whom the rest of us scoff at) a nice financial return.
January 20th, 2013 @ 7:41 pm
I’ll presume to make a few statements on social media marketing:
1. If it seems to work, and the client is happy with the results, it works.
2. If it doesn’t work, or the client doesn’t feel like it works, it gets ditched.
3. Perception is more important than reality in social media, as with everything.
4. There IS a bubble, it’s going to burst, and then the “experts” will find a new way to exploit that situation, too.
I think that’s the essence of “expertise” in social media…anything more is flim-flam. My two cents.
January 21st, 2013 @ 12:26 pm
Can I get an AMEN on this . . .
http://socialdisruptions.com/psychopaths-robots-and-airheads-corporations-on-social-media/
January 21st, 2013 @ 2:18 pm
An interesting observation from another perspective, that of computer security specialist Bruce Schneier:
The global financial crisis was not a result of criminals, it was perpetrated by legitimate financial institutions pursuing their own self-interest. The major threats against our privacy are not from criminals, they’re from corporations trying to more accurately target advertising. The most significant threat to the freedom of the Internet is from large entertainment companies, in their misguided attempt to stop piracy. And the cyberwar rhetoric is likely to cause more damage to the Internet than criminals could ever dream of.
What scares me the most is that today, in our hyper-connected, hyper-computed, high-tech world, we will get societal pressures wrong to catastrophic effect.
http://www.salon.com/2013/01/21/is_it_impossible_to_trust_one_another_in_the_information_age/
January 21st, 2013 @ 2:55 pm
“In this electronic age we see ourselves being translated more and more into the form of information, moving toward the technological extension of consciousness.”
Marshall McLuhan
“Yes there are two paths that you can go on but in the long run
There’s still time to change the road you’re on”
Led Zeppelin
I’m using the above quote from Marshall McLuhan because the stakes have never been higher from a McLuhanistic perspective although that does not preclude that they can go no higher still. We are in a new cultural ‘cold’ war over a future in which freedoms, both personal and collective, may be redefined to the detriment of one vested interest or another. The current battleground is what we refer to as social media (a.k.a. social computing). The strategic manoeuvres in this war are obscured, which is the nature of cold war, by proxy clashes over various topical issues in the culture (music piracy). If you isolate and deconstruct the patterns in these clashes I think it will lead you to conclude that the primary foes are, on one hand, corporatism and on the other hand, humanism.
Humanism and Corporatism are not mutually exclusive concepts, but in the modernist interplay of institutionalized philosophies attempting to secure a future for the values they represent, toes will inevitably get stepped on. In this case it has gone beyond minor conflict into near-pitched battle because of the emergence and dominance of the new medium of networked digital technology and its destabilizing effect on social truisms like privacy and intellectual property. I hope it is not too hyperbolic to use the 20th century analogy of nuclear weapons and their effect on global politics.
“Now wait a minute Buster,” you might exclaim, “Are you trying to tie the sharing of family photos in Facebook with a concept as elusive as the extension of human consciousness? Are you saying that in effect the nature of human thought itself could be diminished or in some way constrained by the digital marketplace that attempts to promote goods and services to those who build personal relationships on line?!”
To summarize, we seem to have to choose a future where we can expect capitalism to evolve to a model of a less solipsist and self-centred consumer who sees, through a connected world, that his or her choices have an effect, OR else a future where consumers CONTINUE to become the playthings of corporatism as we saw with the housing bubble. I admit that there is a lot of work to do to prove such a hypotheses and there are some powerful interests (like Justice Scalia and the people behind Citizen’s United) who would prefer the latter option to the former. So those of us who agree that there is a cultural cold war going on had better get started making people aware.
January 22nd, 2013 @ 10:17 am
Dave,
Great post, thoughts, and bravery for standing against the wave of “just for the sake of it” social media. I’ve done
onmy best on a quick coffee break to organize my thoughts into four sections below.*Full disclosure: social media is one of my responsibilities, and it keeps me happily employed. Nonetheless, I agree with you that it’s important to step outside what is safe or comfortable for many reasons, including the parallels you mentioned.*
You mentioned that social media marketing can be a self-centered – I’ve certainly seen evidence of that. On the opposite side of things, however, the best people in social media (that I know of) are quite holistic in creating a fabulous user experience with the brand with social media as a component. I like to think of social media as connective tissue between other parts of the consumer experience with the brand. There are few times when I believe social media is a solution on its own.
Social media can illuminate, gather, underscore, and deliver 1:1 experiences. I love brands on social media for the same reason that I love great customer service reps instead of bots. It’s personal, it’s interesting, and it’s often very helpful.
My second reaction is one of agreement: social media isn’t for every brand. Still, I see social media “gurus” — lucky bastards — who land social media manager / strategist positions with companies I would have never imagined as “ideal” for a social media presence. 10 years ago, I didn’t think I’d ever be able to “tweet” something to my favorite the wax salon that does my brows, for example. Still, I often do, and it’s always a fabulous conversation.
My third point is that I could get fab brows for 50% of what I pay at Urban Waxx, but I don’t care, because I love this place and their social media is definitely a part of that. I get to talk to the owner 1:1. I feel like I have a relationship with this brand and I am consistently pleased with my experience there. Is social media the only reason? No way. It is a chunk of it, though. This is the case for other brands, to be sure. Not just on the lifetime customer value (LCV) front, but on customer acquisition by courting potential clients, developing community, visibility, etc.
It’s fair to attack the poor examples of strategy, the fake experts, etc., but I’m sure most people commenting on this thread can attest to the fact that they’ve – at least once – had a great social media interaction with a business.
Thanks for taking the time to write such a thoughtful post, Dave!
Best,
@AGpdx
January 22nd, 2013 @ 12:08 pm
Well, I think it’s time for me to respond. Thank you everyone for your well-reasoned comments. I’m pleased that Maurice brought up Brian Solis and McLuhan and that Anthony mentioned Bruce Schneier. And Andrew joins the fray with his firsthand experience of working in social media.
I saw this tweet from Brian Solis, and I responded to it with a question – what does “closer” and “people” mean in the digital space? Obviously, from an anthropological POV, we humans want to remain in touch with each other as we are social animals. Dunbar’s number reminds us that cognitively we are capable of only “staying in touch” with up to 150 people before things drop off the social cliff as it were. Today, technology simply shortens the distance between us – it began with the telegram and the telephone, then the cell phone and now the Internet.
So a question to you all – can Facebook ever make its users “closer?”
Andrew, I will respond to your comment a little later.
January 22nd, 2013 @ 1:11 pm
If I can quibble with any of the other comments on this post, it would be that others seem to perceive digital interpersonal exchanges with acquaintances, business, government, celebrities et al as yet another flavor of communication. I see it as soon to be the primary and default form of communication. When (if) this happens then McLuhans’ foresight about electronic extensions of human consciousness become an issue.
I don’t mean to be alarmist and I’m trying not to be technologically deterministic but the history of media adoption is on McLuhans’ side. I maintain that being digitally connected to ‘friends’ conceptually changes the definition of friendship. I’m not making a moral argument here, just following McLuhans’ lead that we should make informed choices about how we use technology.
January 22nd, 2013 @ 1:32 pm
Just a quick follow up to answer your question Dave. We are both closer and farther apart through digital connections because we construe our isolation as mostly psychological where as in previous human history isolation was perceived as geographical and cultural.
Technology has consigned those concepts to oblivion. Now we have to deal with the bizarre notion that ‘common ground’ has become digitized and therefore there is less inclination than ever to match up our values to the people in our immediate physical presence.
To put it succinctly, individualism and tribalism have merged together into a society where one’s identity can be aligned with multiple tribes. This expands unified identity but shrinks individual identity.
January 22nd, 2013 @ 1:43 pm
Maurice,
McLuhan is so right here – “we should make informed choices about how we use technology” and I’m glad you mention it. In my response to last year’s David Lowery flap I read a book: Moralizing Technology, by Peter-Paul Verbeek, professor of philosophy of technology at the University of Twente, before writing this: http://pampelmoose.posterous.com/who-cares-about-the-future-of-music
It’s about the ethics and morals of technology and has some brilliant insights…
January 24th, 2013 @ 8:52 am
Andrew,
Sorry for the delay in responding. You very kindly praise me for being “brave” and for standing against “the just for the sake of it” idea of social media, but I don’t deserve the honor. I am neither brave nor standing against what you say. My stance is against the SMM cohort and their bubble.
You offer a full-throated defense of social media marketing from the perspective of one who works at doing just that, so it is you that is brave here. I’m afraid that your personal experience in social media marketing has actually made you biased toward it – which is the very thing I wrote about. You are clearly passionate when say you “..love brands on social media for the same reason that I love great customer service reps instead of bots,” yet I find that an odd comparison as it’s not exactly apples to apples, for e.g. when I see brand tweets on Twitter I see nothing but bad bot prose infected with dangling modifiers. I agree that good social web practice is to provide timely responses to user issues for, but if you are going to be hanging on the phone with American Airlines chugging your way through the auto-response talking bot then I’d presume that falls well outside social media – until that person flames AA in Twitter or FB.
I’m also concerned that the bulk of your comment is a subliminal defense of Facebook when you mention deals and 1:1 relationships. It’s a presumption that all social web users are even interested in having a “relationship” with a brand, and again, that’s the gist of this post, that social media marketing reinforces social media marketing – not on behalf of the user but on behalf of the brand. I enjoy 1:1 twitter conversations with people, I don’t have 1:1 conversations with brands.
Overall brand strategy requires a digital strategy and within that strategy the use of social platforms can be baked into the brand channel plan to reach a brand’s customers.
Let me finish on that word strategy, a term that is often confused and even conflated with tactics. You say it’s fair of me to “attack poor examples of strategy” but I’m not sure I actually did except perhaps subconsciously. Strategy – a plan for achieving a proscribed outcome, or where an action takes place, through the use of research and insights to achieve a goal.
As for tactics, my friend Justin Spohn once put it this way in a presentation, tactics might be “HTML,” “Twitter” or “yellow and green.”
Thanks for jumping into the fray and commenting here. Discourse always helps.
DA.
January 24th, 2013 @ 10:51 am
I think DFW would probably hang himself all over again if he learned that his words had been reappropriated for discussions of Efficacy in Social Media Marketing.
January 24th, 2013 @ 11:11 am
Rod,
I’m not sure you mean reappropriated – http://en.wikipedia.org/wiki/Reappropriation ? Maybe you do, but I am not reclaiming the original instance of DFW’s pithy parable, I am simply referring to it here as an example of how all of us tend to live in bubbles. I’m also repeating it as a soft nudge at the institutions I teach in and work in. You can be rightly critical of the context of use. So be it. But I disagree. I’m also unsure of whether your disdain is toward my use of the parable or your disdain for SMM in general. Either way, the world is a better place I believe, if people look up DFW’s work and read it, even if they found the link to it in my post.
January 25th, 2013 @ 2:24 am
Rod,
Re-contextualized might be the best way to interpret Dave’s use of the DFW quote. Although that word fails to account for the fact that Dave has (perhaps unintentionally)’closed the loop’ of its meaning.
It is likely that D.F. Wallace modified the quote “We don’t know who discovered water but we know it wasn’t a fish” to fit the venue he was speaking in, giving it more of a vaudevillian punch line quality. The quote is widely attributed to Marshall McLuhan but he probably only popularized it.
The quote is first mentioned in a book co-authored by McLuhan and anthropologist Edmund Carpenter (They Became What They Beheld). In the book the quote is attributed to media scholar John Culkin who was a colleague of both Carpenter and McLuhan and the three of them all are variously associated with the “Toronto” school of Communications theory.
I say Dave “closed the loop” because Dave, in using D.F. Wallace’s zinger, has brought the joke’s sentiment back to its original context. Whether DFW originally got it from
orthe other two, they all meant it to convey the pervasiveness of electronic media environments like the ‘bubble’(as I believe to be)of social media.So bravo for Dave Allen for the re-contextualization of the concept and for appropriately focusing on exactly the right quote out of all the thoughts of DFW to bridge his writing’s relevance to the issues we are dealing with since his sad demise.
And perhaps a small feather in my cap for pointing to the influence of the Toronto school of communication theory in DFW’s writings, since I’m not sure if that connection has ever been made before.
Rock On
January 25th, 2013 @ 2:28 am
I wrote, “Whether DFW originally got it from or the other two”
I meant to write, “Whether DFW originally got it from McLuhan or the other two scholars”
January 25th, 2013 @ 11:05 am
Fixed..
January 27th, 2013 @ 10:42 pm
Hello Dave,
My name is Max and I am currently in J456 with Deb Morrison. I stumbled upon your blog while stumbling through the inter webs. I came upon this quote in your article and was wondering if you could expand a little on this idea:
“The second half is closer to what I’m aiming for, where I paraphrase this line as so – when everyone is right, absolutely right, that social media marketing must be an imperative and an unassailable construct as part of an overall brand strategy.”
Most specifically the last part of “social media marketing must be an imperative and an unassailable construct as part of an overall brand strategy.” Im trying to understand brand strategy and the ideas of brands better! Id love some feed back on my blog posts too if you have time!
Thanks in advance
Go Ducks!
January 28th, 2013 @ 9:37 am
Hi Max,
The overall insight in this post rests upon the idea of cohort and bubbles, a scenario where everyone working closely in a particular discipline “always knows best.” It’s a problem that is described by the folks at 37 Signals as “the curse of knowledge.” We see it in economics for instance – in fact the very term “bubble” as used in context of housing, economics, the Dot.com bust etc, was coined in 1720 when the South Sea Company of Great Britain’s stock collapsed bringing down the British stock market. http://en.wikipedia.org/wiki/South_Sea_Bubble
History points to every mistake that humans make but we choose to forget or foolishly believe that we won’t make the same mistakes over and over.
My main point is that when it comes to social media marketing, the cohort always knows best. And even if they are wrong, SMM is still held up as the way for brands to reach people in social channels. Of course a brand strategy should include social networks in its overall brand planning but I believe that social network users need to see way more value from the brands in this space before they will become true brand fanatics – if that’s the brand’s stated goal.
If you read some of the very interesting comments above you’ll get some different POV’s too.
February 1st, 2013 @ 10:00 am
[...] quick post on the back of the one I wrote about social media marketing selling [...]