Sub-terfuge

A macro-trend we call “Consumer Control” refers to the fact that, in many industries, consumers are increasingly taking control over the purchase experience. (Examples include: air travel, music, investments, and even healthcare.) A micro-trend within this shift is consumer-generated content. (Examples: blogging, social networking, and YouTube.)

Recognizing that it could yield some word-of-mouth advertising on a global scale, some companies have attempted to harness the power of consumer-generated content to create “viral” marketing campaigns. Some, however, have discovered that this powerful weapon can easily backfire. (For example, visit YouTube.com and search their archives for “Tahoe commercial.” Warning: Some of the entries can be considered offensive and insensitive.)

Last week, the New York Times reported on yet another attempt at manipulating consumer-generated content that may have snowballed out of control. The story explained that Subway restaurants was suing Quizno’s for slander, even though the ads in question were produced not by Quizno’s, but consumers. The short version of the story: Quizno’s sponsored a contest, challenging consumers to build commercials explaining why they thought Quizno’s was better than Subway. The winning commercial entry—among other things—would be run in an actual television commercial. Subway’s suit contends that many of the entries, seen online and on television, were factually inaccurate… and that Quizno’s is culpable. (To read the full story, click here. A no-cost subscription may be required.)

Implications: The Internet offers a host of marketing opportunities, not the least of which is gaining “worldwide word of mouth,” which travels at near-instantaneous speeds. But proceed with caution, and be careful what you wish for. As the name implies, consumer-generated content means that the company must relinquish control of the message to consumers.

Mike Anderson