The Realm of Advertising on Social Media

Article by Ryan S. Klarberg of Pryor Cashman LLP

The Federal TradeCommission (FTC) issued a recent report that provides the latest guidance to those that advertise and market their products and services online. The detailed report, titled “.com Disclosures: How to Make Effective Disclosures in Digital Advertising” (the “Revised Guide”), is an update to the FTC’s initial Dot Com Disclosures guide that was released in May 2000.

In a society where more than 53% of all cell phone owners in the United States have smartphones as
their primary mobile device, and where millions of Americans are drawn to Facebook, Twitter and
other social media on a daily basis, it is evident why the FTC sought to address the disclosure concerns
that surround social, mobile and digital advertising today. The Revised Guide addresses the modern
concerns involving advertising and marketing via the Internet and other electronic networks. The FTC provides guidance on how and when companies should effectively disclose their digital advertisements in accordance with the laws that the FTC enforces.

The Revised Guide emphasizes the importance for advertisers to make clear and conspicuous online
disclosures, while simultaneously taking into account the growing means of reaching the consuming audience, ranging from pop-ups to Twitter advertisements using 140 characters or less. The Revised Guide makes one thing clear: the ultimate test is whether the information intended to be disclosed is actually conveyed to consumers.

#ADVERTISEMENT: WHAT ABOUT ADS ON TWITTER?
Companies that utilize Twitter to advertise goods and services are faced with an inescapable digital
reality: how can they successfully market goods or services to their target consumers while simultaneously attaining compliance with the FTC’s disclosure guidelines in 140 characters or less. Thankfully, the FTC’s Revised Guide alleviates some of the difficulties associated with this concern by providing guidance and examples of how to meet the FTC’s guidelines.

The FTC recommends the use of ad signals in space-constrained mediums such as Twitter. For instance, it is recommended that companies make use of the ad signal “Ad:” at the beginning of a promotional Tweet, such as a Tweet by a celebrity endorser. This space-constrained ad signal, while only using four characters, discloses that the Twitter-user is a potentially paid endorser for a product or service. There are also vendors that provide disclosure tools, such as natural language disclosure url links (such rul.es and comp.ly), that will likely satisfy the FTC’s disclosure guidelines.

HOW CAN YOU MAKE EFFECTIVE DIGITAL DISCLOSURES?
Contact Ryan Klarberg at Pryor Cashman LLP for more information, and to discuss the impact this may
have on your business.

https://www.pryorcashman.com/lawyers/ryan-s-klarberg.html

http://www.ryanklarberg.com