When the FTC updated its guidelines for advertisers using testimonials and endorsements, it may have felt as though the FTC set out to hurt the performance marketing space. In reality, though, they began the process years before performance marketers started to unlock the value of testimonials / endorsements. Trying to get a grasp on just how these rules have impacted our space is a little difficult as it has come under pressure from multiple fronts - from traffic sources to the credit cards themselves. It's a little easier to notice the impact of the updated guides on other industries, one of which comes to mind - the drug industry. In many ways, big pharma and those in the performance marketing space that have promoted health and beauty hit a similar audience, especially when focus is on the vanity categories, those where a person doesn't arguably need treatment. Regardless of what big pharma tries to sell, their ads have always had to err on the side of caution and over-sharing of information. With the new rules in place, it hasn't made their jobs any easier. Let's take a look at a recent ad for Chantix, a prescription medication designed to help smokers quit.
In the past, you would see a disclaimer surrounding the participants of the commercial, e.g., are they an actual customer or an actor portrayal? That is still the case, but notice just how prominent of a position the text now occupies. The text rests at the bottom of the ad, but in the same size as the website and on a white background. They don't obfuscate it in any way.
No drug is perfect, and most discuss the effectiveness of the drug. In another case of transparency, this commercial doesn't just rely on a verbal communication but displays it on the screen as well. Can you imagine someone in the performance marketing space wanting to so boldly state that their product worked for less than half the people? More interestingly, they put in plain English how well the placebo group did not even calling it a placebo, but a sugar pill. They beat the placebo, but it's pretty amazing to see the placebo effect at work in something as difficult to conquer as smoking.
That drugs have side effects shouldn't come as a surprise, but imagine having to not just say the side effects but also display them. That's what we see here, and by display, it means right in your face not in fine print. It's one thing for a drug to cause sleeplessness or an upset stomach, but check out what they disclose here, "Some people have had changes in behavior, hostility, agitation, depressed mood, suicidal thoughts or actions while using CHANTIX to help them quit smoking. Some people had these symptoms when they began taking CHANTIX, and others developed them after several weeks of treatment or after stopping CHANTIX."
Just in case you missed the first disclaimer, this ad repeats it in slightly different language. Again, they don't bury the text. One of the disclaimers that was mentioned but not written is found on the website, "Some people can have serious skin reactions while taking CHANTIX, some of which can become life-threatening. These can include rash, swelling, redness, and peeling of the skin. Some people can have allergic reactions to CHANTIX, some of which can be life-threatening and include: swelling of the face, mouth, and throat that can cause trouble breathing. If you have these symptoms or have a rash with peeling skin or blisters in your mouth, stop taking CHANTIX and get medical attention right away."
Chances are, that were you to have watched the above, you might have noticed the changes. On paper, and in screen shots, the changes look scary, but the net impact on the user is not nearly as detrimental as one might think. In the online equivalent, conversions rates will go down, but conversions won't go away. Like the process of making a television ad, it will cost more and take more time than it did in the past - and those who want to do it right will wait a little longer before deploying. The world of greater disclosures is definitely a change and will be a challenge, but it isn't the sky is falling scenario that man feared. We are simply entering a more mature environment, but an increase in rules doesn't imply a decrease in earning power across the board. It does raise the bar for those who want to continue to play. It won't be for everyone, but as one door closes, another tends to open. In this case, though, the door takes a little bit of time, and it could prove to be a slightly painful process as companies adjust their sources of revenue. But, the performance marketing industry will get through it. This won't be the first time that the industry has had to retool, and unfortunately it won't be the last.
Editor
DM Confidential
www.dmconfidential.com
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