Influential influencers

Why there is some sense to a seemingly draconian crackdown on social media personalities

Jan 09, 2022

Welcome to IMTW issue № 45. I trust you had a restful Christmas break. Here is the week’s news likely to impact you, delivered with insight on why it matters and ideas on what to do about it.

👉🏻 Now, read on to learn why:

① Celebrities should not recommend financial products.

② Tapping into influencers’ reach is feasible but precarious.

③ Digital currencies are being taken seriously by governments.

④ Much of the future of finance will be built on blockchain.

⑤ Principled companies eschew Zuckerberg’s media.

⑥ Survival sometimes demands violating your purpose.

⑦ Technology marches on regardless.

What's new?

This week, Finews reports that China will bar financial product marketing via celebrity livestreamers.

In short:

“Chinese authorities issued draft guidelines last Friday that would require individuals engaged in online marketing of financial products through livestreaming and social media to be employed by financial institutions and hold professional qualifications.”
“Under the proposed rules, celebrities would also be banned from recommending and endorsing financial products.”
The China Securities Regulatory Commission issued the order, adding that livestreamers should focus on the analysis of the macro economy and the overall market for commentaries.“

Why does it matter?

It’s not often I find myself nodding at the actions of the Chinese government but I see some sense here. From a marketing perspective, we’ve talked about this topic before in these pages, both how to leverage influences on social media, the power of going viral on social media, and the dangers of using celebrities to do your bidding.

The reason it all matters is because of the point I made in my entry for Saxo Markets’ competition on moral hazard last summer: a minority of investors who relish risk are now moving markets – however sporadically – in ways we could not have foreseen a decade ago. That’s means it’s in all our interests that they are well informed and not unduly influenced by the ‘celebrity factor’.

① Those of us who work for financial institutions - beyond our duty to abide by the regulator’s rules - have a particular responsibility to act with integrity because we’re not selling software or sugar water; we’re selling products that, quite literally, affect people’s future. Get it wrong and people stand to lose money they can’t afford to be without.

The marketing challenge, however, is that the rise of online influencers is impossible to deny and access to their vast audiences is hard for marketers to resist. So how should we do it with integrity and credibility?

What's next?

Take action

② I’m not suggesting you should avoid social media influencers in your marketing efforts - quite the opposite - but I do think they need to be treated with care. There are two main risks here: falling foul of your regulator and appearing desperate (there is something just a little needy about having an overpaid celebrity do your bidding.) Your overall goal then should be to gain access to their audience, rather than seek their recommendation.

Choose the right partners: Choose an influencer that can make a credible link between their areas of interest (and therefore their audience) and your own brand.
Avoid product promotion: Remember, you’re here to gain access to the influencer’s audience so keep the content focused on industry topics or problems, not flogging your solution.
Be transparent: Be clear and open about whether any financial consideration has been provided to the influencer.
Embrace disagreement: Don’t be afraid to have the influencer you partner with be fairly and factually critical of your product. The prize is credibility.

Get help

Visit InMarketing, my resource library for leaders in finance or technology who want to innovate, interact and influence.

If you have a question, just hit ‘reply’ or send me a tweet.

Can I ask you a favour? If you found this useful or know someone who would, please share it. It really helps me to grow the community of regular IMTW readers.

What else?

Three other articles that are worthy of your time.

FINANCE

New York regulator appoints virtual currencies chief

③ Digital currencies are being taken seriously by governments.

“The New York State Department of Financial Services has appointed former Promontory executive Peter Marton as deputy superintendent of virtual currency.”
“He will work within the regulator’s research and innovation division.”
“NYSDFS posted an advert for the job last summer, saying the position would have a special focus on virtual currencies, digital currencies, blockchain, distributed ledger technology, and other related products and technologies.”

TECHNOLOGY

Top blockchain trends in 2022

④ Much of the future of finance will be built on blockchain.

The supply chain industry will find Blockchain game-changing.
Smart contracts are fostering blockchain adoption.
Applied to the metaverse, blockchain can store user data on a tamper-proof, shared ledger, assuring users of its immutability.
NFTs, short for non-fungible tokens, have been among the hottest trends in blockchain technology this year.

MEDIA & MARKETING

Starling pulls Facebook advertising

⑤ Principled companies eschew Zuckerberg’s media.

“Starling CEO Anne Boden says the bank has pulled all paid advertising on Facebook and Instagram until Meta tackles fraudsters advertising on its platforms.”
“Boden has been at the forefront of an industry push to get financial fraud included in the government’s new Online Safety bill, which aims to force firms - through the threat of massive fines - to improve internet safety in areas such as terrorist content, child sex abuse, hate crimes, cyber-bullying and the dissemination of fake news.”
“She accuses big tech and social media giants of allowing ‘financial fraudsters to advertise and post content on their platforms that result every day in people being scammed out of their savings’.”

Well said

⑥ Cirque du Soleil’s Daniel Lamarre telling the FT how he steered the circus group through management change and commercial challenges — then Covid struck:

Daniel Lamarre. Source: The Financial Times, 9 January 2021

“To save the company, I had to violate the very purpose of my life — creating jobs for artists.”

One more thing...

⑦ Remember when toting a BlackBerry was the ultimate executive status symbol? Well, this week the company finally, truly, for real this time, died - ending access to all legacy services. RIP.