Does it matter how bloggers are paid?

by Joel Turner on October 19, 2009

The Federal Trade Commission (FTC) recently suck its neck out by suggesting bloggers who are paid, or otherwise incentivised to post should declare that interest as it is misleading to consumers not to do so (look here for an analysis).

This brings up a whole raft of questions about the status of bloggers and those who pay or give them products to write posts in the UK. One of the main issues goes to heart of what blogging actually is. Is it journalism or advertising? And if it’s neither it falls between industry regulation in the UK.

Traditional media

Journalists are paid by publishers. Those publishers have an obligation to separate advertising and editorial content. (one that the Daily Express doesn’t always take seriously)

The Advertising Standards Authority (ASA) challenged the Daily Express, suggesting that features it had published were in fact controlled by the advertiser – not Express Newspapers – and that the paper had not made this clear by labelling the content an advertorial. The ASA also challenged various claims made about the effectiveness of each product.

The Press Complaints ComissionPCC  has a voluntary code governing journalistic ethics. It is only loosely adhered to in some quarters ( I’m thinking the Sun and News of the World) and doesn’t specifically mention the subject of journalists being influenced by cash or gifts, but does stress the importance of journalists not abusing their position by printing misleading information.

The truth is that while journalists are given quite a lot – press trips to exotic shores, healthcare products, consumer gadgets, etc – there is only a tacit understanding that they will ever write about what they are given, a sort of gentleman’s agreement. 

Journalists aren’t paid by third parties because it is considered that such payments would affect their impartiality. Advertising departments do occasionally put pressure on them to consider writing about certain products or companies, but cash isn’t paid to them directly.

A blogger’s integrity

As we all know bloggers self publish – making money if they can and want to from advertising, affiliate schemes, sponsored posts and selling links.

While the FTC’s guidance leaves a lot of question marks (read here for a good look at some of its essential problems) for the blogging community it seems no one is particularly concerned as it currently lacks the clout to police what it is proposing.

There are effectively no rules that affect blogging in the UK in the same way that the ASA polices advertising or the PCC patrols journalism.

So? you may well ask, does it really matter?

The community regulates

Well yes and no. 

It matters to some more than others. If blogging and social media is democratising the media – allowing anyone to publish their own thoughts or news – then we all hope content is trustworthy and transparent, as we rely on it to shape our world view.

In some senses it doesn’t matter how bloggers are paid as long as their blog stays true to its subject matter. If it doesn’t and quite clearly becomes a mouthpiece for marketers then it will lose readers, comments, links and ultimately value.

So it’s not how bloggers are remunerated that matters, but what they say and whether readers trust them that counts. As this blog’s very own Patrick Altoft tweeted:-

If a blogger has credibility they just chose the right things to write about and keep that integrity intact.

Blogs sit on a scale somewhere between advertising and journalism. Each one at  a slightly different point on that spectrum attracting a different audience who are well aware of  their approach. If you start to go off topic or post on products or issues your readership has no interest in they’ll soon let you know.

So bloggers aren’t just self-regulated, but also checked and balanced by the communities they attract and inhabit – which is perhaps more powerful than any official code.

I'm a PR consultant and former journalist with a love of all things internet and social media related, particularly the space within which SEO, digital maketing, social media and online PR meet. I've worked on a range of consumer and corporate accounts, with everyone from SMEs to charities and social enterprises to multinational corporations. Find me on Twitter at www.twitter.com/joelturner

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{ 10 comments… read them below or add one }

bee 19 Oct 2009 at 9:01 pm

Blogging is, by its very nature, a personal (or corporate) opinion which people should consider amongst all other opinions when researching in order to reach their own conclusions.

Even if unpaid, the opinions will invariably be biased.

Government treats people as if they are stupid then punishes them for not knowing obscure facts about the law. Most people just want a quiet life and have no intent to deceive.

Internet Marketing Consultant 19 Oct 2009 at 9:46 pm

Interesting, very well put Patrick. I think its a good idea to have to clearly mention if the review is a paid one, as it leaves out any conflict of interest.

whenever i do a paid review, i clearly mention that it is a paid one, however i dont give them a great review if the product is not worth it. I simply give an honest review, whether paid or not

tag44 20 Oct 2009 at 6:38 am
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Well i don’t think that it really matter a lot, bloggers are paid on there actual work.

More comments from tag44
Jenny 20 Oct 2009 at 1:45 pm

it seems that FTC is ripping off the bloggers and most of all the people doing something online. Bloggers with successful blogs are not born overnight. They are created. They get these advertisers to pay them because they have created an audience that listens and trust them. These are real word-of-mouth advertising. A blogger cannot have an advertiser or even a reader if they don’t provide quality content the same as products on the market that have good quality can have as many buyers.

Greg Doyle - FirstFound 21 Oct 2009 at 10:08 pm

I think that this is an interesting debate that is not always clear in papers and magazines yet alone in the world of blogging. There will always be a bias in the world of the media towards the viewpoints of the editorial staff which itself is biased based on the pressures put on it by advertising. In the world of blogging it would be hard to regulate and make sure that people who are paid to post advertise that fact and I think it would also be wrong to do so. A person is entitled to voice their opinion on a blog whether their opinion is their own or the message of a corporation. What matters is ensuring that it is relevant. No one wants to read about Britney Spears on an SEO blog, ok maybe some of you do. Anyway that is enough of a rant.

Joel Turner 23 Oct 2009 at 4:50 pm
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Thanks for your comments guys – an interesting mix of opinions. This is a debate that really does get to the heart of what blogging is all about. I don’t think we have heard the last of it, although any attempt at regulation is some way off.

Joel

More comments from Joel Turner
Tony 27 Oct 2009 at 11:17 am

Hi Joel,

Thanks for the interesting article. I found this post while searching Google for something related to my below query (after reading news about the new “guidelines” I felt I needed to dig deeper).

I’ve been running a blog for some time now but I am only recently receiving requests from companies who want to pay me for advertising their content. I haven’t yet taken any of them up on the offer, but the most recent offer is rather lucrative. However, it’s been made clear to me by the company who wants to advertise that I can’t include any mention that their link and advertisement can’t be listed as “Sponsored” or other.

Would this be breaking the new guidelines and could I face any sanction if I accept their offer?

I’ve done some research on the company who contacted me (Greenlight Search) and they seem to be fairly reputable with ‘biggish’ clients – so I assume they either are not taking note of the FTC or are unfamiliar with their announcement.

Regards,

Tony

Joel Turner 30 Oct 2009 at 12:44 pm
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Hi Tony,

The first question is are you and your blog American based? The FTC rules only cover American blogs.

The second question is whether what Greenlight are offering fits with your blog – is it completely off subject and how will you readership react?

The third question is one for you – will it alter the integrity of what you are doing and will it make you feel conflicted? If so it will rapidly become a lot less enjoyable.

I wouldn’t worry too much about regulations at this stage, but instead think about what is right for you and your blog.

Thanks

More comments from Joel Turner
s college 31 Oct 2009 at 2:25 pm

In the UK, we have Consumer Protection from Unfair Trading Regulations which ban certain practices. There are similar schemes in Europe. The penalty for breaking the regulations is up to two years in prison. If you are engaged in commerce your readers have a right to know. The specific guidance on this gives the following example:

Falsely claiming or creating the impression that the
trader is not acting for purposes relating to his trade,
business, craft or profession, or falsely representing
oneself as a consumer.
A second-hand car dealership puts a used car on a nearby
road and displays a handwritten advertisement reading
‘One careful owner. Good family run-around. £2000 or
nearest offer. Call Jack on 01234 56789’. The sign gives the
impression that the seller is not selling as a trader, and
hence this would breach the CPRs.

Blogging can be a hobby so if commerce is involved this has to be disclosed, in the same way if you ran Google Ads on your blog this would be disclosed to your readers. The company that has approached you, and you as the publisher would be breaking these regulations if a consumer changed what they bought on account of your blog and you had ommitted to disclose the commercial relationship you had with the company.

The risk with bloggers equating themselves with journalists is that a reporter working on a newspaper earns a salary and they are paid that salary irrespective of what they write about. There is no financial benefit from writing about certain products as journalists are not paid based on what actions readers take having read their editorial. This is why newspapers investigate stories that may stop a company trading or lead to products being banned, something which would be difficult to do as a business if you were only paid if readers bought the products you wrote about. Newspapers have codes of conduct about not writing about companies that you have a financial interest in, for example the Guardian code bans its journalists from starting a story about any company with which they have a financial interest. Newspapers sell space to advertisers and this performs the function of selling to readers. The Daily Mail separates the commercial function entirely from the editorial team and this division goes right the way to Paul Dacre.

birja 25 Jun 2010 at 11:25 am

Well, maybe they want to create taxes for bloggers? :) )

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