Will Dubai’s social media business license regulate the influencer space?

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There’s been little legislation specifically looking at social media selling or influencer marketing across the Gulf

As anyone who works in the social media space in the Gulf knows, there’s nothing in the way of regulation. We’re working in a space which is poorly understood when it comes to legality and regulation (though, as I’ve written about before, any sponsored content is legislated for by the UAE’s advertising law).

This may be about to change however. Last week, Dubai’s Department of Economic Development launched a new business license, designed for those wishing to conduct business online, via social media. Here’s more details from Arabian Business.

Dubai’s Department of Economic Development (DED) has launched a new e-Trader licence to allow Emiratis and GCC citizens in Dubai to conduct business activities on social networking sites.

The DED’s Business Registration and Licensing (BRL) sector said the initiative is part of enhancing transparency and regulating the practice of offering products and services for sale on social media.

The e-Trader licence can be registered under the name of a single owner only and the owner must be an Emirati or GCC citizen aged 18 or above and residing in Dubai.
Nearly 3,000 e-Traders are expected to be licensed in Dubai in 2017.

At the event, there were a number of social media influencers, including Emirati comedian and instagrammer Kanu AlKendi (you can see his post below).

بشرى سارة لجميع تجار مواقع التواصل الاجتماعي @dubai_ded الْيَوْمَ أطلقت الدايرة الاقتصادية قطاع التسجيل و الترخيص التجاري مبادرة الاولى من نوعها في منطقة الشرق الأوسط ( ترخيص المشاريع التجارية التي تدار عبر مواقع التواصل الاجتماعي ) و هذه المبادرة تشمل مواطني دولة الامارات و دول مجلس التعاون الخليجي لتنظيم و تسهيل مزاولة الاعمال التجارية الالكترونية بإمارة #دبي @dubai_ded @dubai_ded @dubai_ded #التاجر_الالكتروني WWW.etrader.ae للتسجيل

A post shared by Kanu Alkendi (@kanu7alkendi) on

One of the reasons given for the launch of this license was to enhance consumer confidence in online businesses. “Licensing a business activity enhances consumer confidence on one hand and on the other, it removes the risk of infringement on a reserved trade name or other intellectual property, explained Omar Bushahab, CEO for the Business Registration & Licensing (BRL) sector of the Department of Economic Development. “A license guarantees the rights of everyone concerned and defines the legal accountability of the merchant.”

Transparency (or the lack of) has been a major talking point when it comes to influencer marketing in the region. While some businesses have to ensure that their influencers publicly state that their content is paid for (mainly those registered or publicly listed in jurisdictions with a legal framework around online marketing), the majority of advertisers and social media influencers don’t.

I understand that governmental bodies have been looking at ways to regulate the influencer industry – I don’t think I’ve seen a campaign over the last year which hasn’t featured an influencer. This may be a first step. However, more may be to come in relation to legislation covering influencers, particularly those who aren’t Gulf nationals (which is essentially the majority).

“One of the key challenges in the DED launch narrative is the condition that all license holders must be GCC citizen. This may prove difficult or restrictive to the large expatriate population across Dubai,” Lindsay Wakefield, a retail analyst, told Gulf News.

For agencies who are working in this area, it’s more than advisable to get legal advice as to how you and your clients should be engaging with influencers.

Lessons for the PR Industry from the Dubai Lynx

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The Dubai Lynx highlighted the issues that communicators (and their marketing colleagues) will need to face up to. But is anyone listening?

It was an early morning, but the 6.30am start from Abu Dhabi was certainly worth it. The Dubai Lynx is always worth a visit for anyone working in marketing and communications. The Festival, which is organized by the people behind the Cannes Lions, has been going for over a decade. And, as the two disciplines of marketing and communications coverge, the Dubai Lynx (which billed itself this year as the MENA region’s biggest celebration of creative communications) is becoming a must-attend for communications professionals.

For me, there were two basic takeaways from the Dubai Lynx:

  1. It’s all about data, data, data: Every other word seemed to be data. The push to incorporate data – big, small or something in-between – is understandable; the marcomms industry has always struggled with the question of ROI, and data measurement, when used wisely, should help answer the question of what are organizations getting for their money’s worth. When analyzed well, data will also help marcomms professionals better understand both their audience and their impact. However, what wasn’t mentioned was ‘creativity’. Have we swung too far over to talking about data, rather than marrying data with creativity? While I’m sure there are computers and algorithms that are far smarter than me, I doubt there’s any machine which understands the human mind better than we can. Could a computer have understood why the ice bucket challenge would have gone viral? Or the success of the Chewbacca mom? I doubt it.
  2. Agency Convergence gathers steam: There’s no marketing or communications in our industry anymore, as the list of agencies offering everything under the sun grows longer. Those marketing agencies who were already one-stop shops are going further, and breaking down the internal silos to promote better integration between the various disciplines. Some PR firms are creating new roles, such as creative leads and digital heads. And then there’s the big consultancy firms, the data goliaths such as Accenture, IBM and McKinsey, using their IT know-how and their understanding of strategy to break into the marcomms industry (we’ve already seen this with Accenture and IBM, and expect to see it with McKinsey in this region following their acquisition of marketing firm Elixir). For an industry which used to be mainly focused on media relations about a decade or so ago, this is a seismic shift. Expect to see the gap between those offer an ever-expanding range of services (think creative, digital, public affairs, technology) and those who stick to old-school offerings such as media relations to grow significantly over the coming year.
  3. Marketeers are doing PR (and some of their work is exceptional): One of the best PR executions I’ve seen in a long time was from last week. It was the ‘Fearless Girl’, a statue commissioned by State Street Global Advisors and executed by McCann New York. The concept, which was timed to coincide with International Women’s Day, saw the ‘Fearless Girl’ face off against the famous Wall Street Charging Bull. The stunt symbolized the power of women in leadership and emphasized that companies with women in top positions perform better financially. Ask anyone in the business and they’ll tell you that McCann isn’t a PR agency, but rather a creative. However, much of the work which has been winning plaudits at Cannes recently has essentially been PR work executed by creative agencies.

The PR industry has gone through some remarkable change over the past decade. However, we’re going to see much more disruption over the short and medium term as creatives and consultancies move into new disciplines. Are PR firms ready to both embrace data and expand their own offerings? Or are we about to see another wave of industry consolidation over the coming five years? Time will tell.

The rise of the Khaleeji Woman as online content creators (part two)

As it’s International Women’s Day, I couldn’t wait any longer and, I’ll be brutally honest, I wanted to see lots of cake porn! Here’s the second of a two-part guest blog on how women across the Gulf are using social media and their skills not only to create entertaining and informative content, but to also earn a living. In this second post, Paul Kelly, creative director and co-founder at Digital Ape, argues that brands need to rethink how they both develop and execute content creation strategies with online female content creators in the Gulf. Enjoy the read, and let Paul know what you think!

During the last post, we discussed a survey of MENA based women, and their attitudes to content, particularly food content online. This week we will focus on the content creators who these surveyed women follow and imitate. We will look at how they are creating engaging content and why that matters for brands and publishing houses alike.

How are they doing it?

People are attracted to people. If I can find someone online, who understands what happens in my day, speaks my dialect and knows what I need better than say a publisher in Dubai, then I will follow their content, and my friends will too.

Women across the GCC are doing this in their millions, Khaleeji women want to see themselves reflected in their entertainment, and they want advice and recommendations tailored to them. Gone are the days when they must consume content created by an American in New York, and served to them on TV or in print. Women from the UAE to Saudi and beyond and seeking out other women who look like them, speak like them and understand their lives.

This I believe is one of the reasons why old fashioned publishing houses, should be quaking in their boots. As much as we try, Western or Levantine men in Dubai will never truly understand what Khaleeji women want in entertainment content, and now that they have a choice, these women will choose to consume content made by their peers and when that happens at scale, these content creators become publishers in their own right.

A content creator who builds an audience and keeps them engaged is no different to a publisher, and creators with a female Khaleeji audience, have an audience underserved by content, and exponential growth rates equal revenue.

The train-wreck.

So how has it come to influencers being ridiculed for their work? Worse still, how has it come to people calling themselves influencers, buying audiences and getting a free meal ticket?

Aside from the typical Dubai-syndrome of echo chamber marketing; it’s a mix of naïve marketing managers chasing trends, agencies ill-equipped for creative relationships (trying to replace banner ad revenue) and people who see social media as a shortcut to making a quick dirham.

Instead of actively investing the time needed in these powerful communities, brands, in place of real strategies, throw wads of cash at so-called influencers and hope for big results, often leading to disappointment.

At Digital Ape, we’ve got this down to an art. Just like money is a hygiene factor when it comes to employment, so too is it when it comes to dealing with real people creating content. It’s about giving content creators what they need; Props, filming equipment, sessions with filmmakers, assistance in real-time sessions with editing, contract help, this way everyone gets the best of the relationship. Creators develop better content with help from the brand thereby growing audiences, which in turn helps the brand. Women develop a revenue stream from content that fits and that the audience understands. This isn’t horse trading it’s about developing a win-win situation for creators, brands and audiences.

Find the fit for your brand by having an empathetic network of people to draw on, then seek out their audiences. Work WITH them. Don’t use influencers, work with your content creators. It’s an investment that pays handsomely.

 The future.

It’s no surprise that local publishing houses are scrambling to get on board with the creator craze – they after all, were the content creators and influencers of an older generation. Less able to respond to a new reality of screens and pixels, and even less able to understand how to convert revenue from the eyeballs they’ve been left behind as content becomes borderless and habits are quickly changing.

After all, is what someone like PewDiePie doing any different to what VICE was doing in 2010? Arguably with 54mn subscribers (at time of writing) on YouTube he has as much impact as a medium sized cable network. Is Kim Kardashian any different to Hello! Circa 1998? Her ability to shift units of anything she sells is phenomenal.

Some will argue until that until we have proper regulation in the GCC we’ll never achieve a level of sophistication that will mean any content creator is taken seriously.

Forget that.

What I am, and us at Digital Ape say, is that the content creators are the new publishers. Instead of being locked up in an edit suite at MBC, they are at home in their own bedrooms with their phones, doing the exact same thing, for an audience which increases with every post.

What we are seeing is a new model of content democracy where the 1% who make the content for the 99% are now starting to take back their revenue. Where once it was the Newscorps or CNN’s or ITP’s relying on their talent to sell time, space or inches, it’s now the Felix’s, Rayyan’s and countless mothers, wives and daughters who have a passion to create that will shape our entertainment for the next 20 years.

Digital Ape’s research with MENA women underlines the role digital plays in offline purchase intent

The rise of the Khaleeji Woman as online content creators (part one)

In the run up to International Women’s Day, I’m delighted to share with you a two-part guest blog on how women across the Gulf are using social media and their skills not only to create entertaining and informative content, but to also earn a living. In this two-part special, Paul Kelly, creative director and co-founder at Digital Ape, will share his insights on the rise of the Khaleeji women as online content creators. Thank you Paul for two great articles; I hope you enjoy this read as much as I have done.

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With over 1.2 million followers, the Kuwait-based Instagram account omaziz_kitchen is just one example of many cooking-focused social media accounts in the MENA region.

In the echo chamber that is our social newsfeeds, I’ve seen an increasing amount of antipathy towards social media creators that are commonly being called influencers. Case in point is Felix Kjellberg’s (aka PewDiePie) recent poor decision-making transgressions and resultant glee of the cable news media in his corporate downfall (not that his followers seem to care in the slightest). This backlash against PewDiePie is reflective of a larger trend of hostility towards the world of so-called social media influencers.

It’s not without reason, either.

To begin with, the word influencer is horrible.

It feels like an archaic relic of when brand marketers relied on word-of-mouth via focus groups to influence purchasing decisions and has no place in the modern marketing dialect.

Next, there’s social media accounts that reference the word influencer in their bio to – a tip; if you see that run a million miles.

There is a better a way, which begins with recognizing true influence for what it is.

At Digital Ape we have been working with so-called influencers since 2009, first as web publishers and now as branded content specialists. However, influencer is not a term we use. We call them content creators, and we refer to their followers as their communities. In 2017, the creators’ influence on their own communities is very real, and has a lot of parallels with the Publishing Houses of the decades before it.

There is also something deeper to this influence.

It’s creating a movement amongst some of the most underemployed people of the Gulf – women – and setting them on the road to being financially independent, through employment on their own terms, at times that suit their family schedules. How?

Let’s talk about true influence.

Digital Ape commissioned a survey of 1500 MENA-based women late last year; we were interested in their content habits online, particularly in relation to food content. Even we were surprised with the results.

  • Content creators are trusted 3X more women than brands.
  • Online content creators are as important as friends and family recommendations when it comes to purchasing decisions offline – Interestingly brands are half as likely to influence a decision themselves;
  • In Saudi, non-branded (e.g. content creators) channels on social media are more popular than family and friends, and double that of brands, in trust weighting;
  • Digital content drives 65% of purchasing decisions compared to 35% offline;
  • WhatsApp is the most popular recipe sharing tool in the MENA region, with Snapchat becoming increasingly popular amongst 35-44 segment;
  • 84% of respondents don’t see any problem with a content creator featuring a brand in their content;
  • Facebook is for old people! At a factor of 50%, Facebook is more popular among 35-44 year olds compared to 18-24 and 35-34, with Instagram, WhatsApp and Snapchat far exceeding Facebook’s popularity;
  • YouTube is the most popular place for GCC women to find inspirational ideas for cooking;
  • TV and Radio are diminishing down the scale of importance in purchasing decisions by a factor of 3 compared to digital content channels, across all age groups.

If you think that influencers are a flash in the pan, you’re wrong. But likely if you’re thinking that, you’re not in the right frame of mind to begin with.

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Instagram, Snapchat and WhatsApp are the most popular apps for younger audiences when it comes to sharing among women in the MENA region. Facebook is most popular for women aged between 35 and 44.

What are content creators achieving?

There are hundreds of female content creators in Saudi Arabia and Kuwait with communities of over one million people. Even I was skeptical at first, and thought, like you might be now, that the communities were fake, somehow generated from a click farm in a faraway country. However, a deeper dive and a more intelligent way to look at influence is to look at engagement rates from communities. Comments on each piece of content are a great place to start, apply cultural context to the creators and you begin to see that this influence is real.

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The most powerful online driver of purchasing decisions offline is a recommendation by family and friends, followed by cooking channels.

Our survey told us that the audience know the creators are working with brands, these “sponsored posts” get incredible engagement results. We have seen engagement rates of 5-15% on millions of followers, encouraging hundreds of actions from a single piece of creative content.

The best part? They are mothers, daughters and wives – making content for their peers, and earning their own money to ensure that if society makes it hard to get a job, they have an income from their passion anyway.

Now that we have seen what content creators, and women are doing, next week we look at how they are doing it and why this matters for audiences, brands and traditional content publishers.

Do You Know Your Rights? Public Relations and the Law

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Yes, I also used to have nightmares about lawyers. But don’t worry, they’re a friendly bunch, especially if you work agency-side.

The law! These are the two words that’ll send most PR practitioners running into the distance and over the horizon. Public relations practitioners aren’t always savvy about their legal rights, or what local legislation means for how they (or their clients) operate.

It was a refreshing change to see this issue tackled at this year’s PR Pressure conference. Organized by Secret PR and now held for a second year, the event included a panel of legal minds who were willing to tackle everything from intellectual property (including pitches), to social media and influencers and chasing debts.

I’m going to summarize some of the key points made by the speakers – Cedar White Bradley Group’s Fatema Fathnezad, Norton Rose Fulbright’s Dino Wilkinson, Al Tamimi’s Fiona Robertson, Lincoln Legal Consultants’ Nasir Ilyas and Rafi Yachou from InDate.info – on a number of areas which are, or should be, of concern to communicators.

Getting Your Contract Right

As Fiona Robertson clearly pointed out, much of what goes wrong legally starts with the contract. Be as precise as possible in terms of deliverables, avoid jargon, and ensure that you understand what recourse you have to legal help in the jurisdiction under which the contract is applicable. You’ll end up spending much less on a good contract than on any legal dispute (up to a tenth according to Robertson), so ensure that the contract is watertight and clear to all parties.

Who owns the Intellectual Property (and pitches)

We work in a content industry, and yet so little of what we do with content is understood within a legal framework. For example, do you ask for consent from those people that your photographer is taking pictures of? Are you clear on when and where content which you have purchased usage rights for can be used? And what happens when your content is misused, such as after a pitch?

Fatema Fathnezad suggested that agencies trademark their logo and services, and include these trademarks on all materials. In addition, before and after a pitch agencies need to communicate in writing that the material being presented is under copyright and that as such the execution of these concepts cannot be undertaken without the agency’s permission and compensation being paid. Remember that you cannot legally own an idea, but you can copyright and protect the execution of that idea.

Social Media and Influencers

This one may be common sense, but the first thing that agencies and clients need to bear in mind is that they need to manage administration rights of social media accounts.

Secondly, when it comes to influencers any paid content must be considered as advertising. Dino Wilkinson pointed out that many influencers in our region are reluctant to clarify to the public when content is paid for, but as per the advertising laws there are rules which must be followed by both brands and influencers (you can see them here).

Like many other jurisdictions around the world, there’s not as much legislation around influencers as they should be (for example, do they need to have a business license to operate). Both Dino and Fiona spoke of the need for agencies to have contracts in place with influencers, and for there to be background checks on the influencer – remember that these people will be representing your brand or your client, and so the proper due diligence should be done.

Chasing Payments/Debts

Some of the most interesting comments were made by Nasir Ilyas and Rafi Yachou on the issue of debts. Some of the inputs were logical – chase on payments before they’re due and reschedule payment terms if the client has issues paying. If non-payment occurs, look to resolve the situation directly but amicably. And get a lawyer involved – up to a quarter of cases are settled by a letter from a lawyer. There are dispute mechanisms available in the country, such as the DIFC Small Claims Tribunal, but these mechanisms will cost you time and money, so beware of what you’re getting yourself into.

Yachou suggested two novel agency approaches to clients – firstly, do a background risk assessment, so that you understand the history of payments both for a particular industry and a specific client. Secondly, there are insurers who will underwrite agency billing; if a client doesn’t pay, the insurer will make up the shortfall. We’re talking about billing in the millions of Dirhams here, so it’s not going to help small agencies, but it is a thought for those medium and larger sized agencies who want to hedge their risks.

Thank you to Secret PR

I want to say a big thank you to Sarah Mohamed and her Secret PR team for arranging this event, which is free to attend and which does tackle the big issues that the industry faces (other topics included the Arabic language and digital). Sarah and the team put a great amount of effort in to make this work, and it’s good to see a group of people take the initiative to educate others. Thank you Sarah!

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Sarah Mohamed is the head of Secret PR and the dynamo behind the PR Pressure event (image source: Campaign Middle East)

Local Heroes: Marketing’s ‘Unconventional’ Said Baaghil

image1You may have heard of Said Baaghil before, most likely on a comment thread where he’s thrown a literary grenade into the public on a subject related to branding in the region. An unconventional brand expert in every sense of the word (do you know any other Arab from this region who wears a bow tie, funky-design glasses  and multicolor sneakers?), Said has written extensively on branding and on brands, both globally and regionally.

I caught up with Said to ask him about his love for marketing, how the industry is changing and the advice he’d pass on to others about the industry.

Q: Said, why and how did you get into marketing?

I studied marketing in college but I realized my passion during my sophomore year. I was extremely active on campus, I was the founder of an international club to show diversity. My first passion was creative, something no one did I should do but I also realized that I needed marketing to understand the way forward. I was a below average student and kept a GPA between 2.0 to 2.2 through out my four years, I was less interested in what the professors had to say than I was interested on change and impact.

Q: How has the industry developed?

Well from the time I graduated till now, I would say tremendously. We focused on the marketing mix when my career kicked off but through the years the audience has evolved and marketing had to evolve with them. Today, we speak of brands that sum up the entire experience and not the marketing mix. While many markets evolved, our market [the Middle East] stayed stagnant. So marketing evolved globally, but everything remained as is here in the region.

Q: What’s the achievement you’re proudest of?

My son! As far as work, I have three. In my ten years in Saudi I was able to build two local brands and take them international in the consumer good and fashion retail space. I’m also proud of my brand as an Arab from my house in Khalddya who has taken on global marketing roles, both in the advisory and public speaking spaces.

Q: What would you advise your younger self to do and not do?

I’ll advise him not to follow the herd, but rather to find his purpose, follow his passion and chase his dream. Don’t fear your failures; they are just a test of time. So get up and evolve.

Q: How will the industry evolve? What trends should we watch out for?

We are in the fourth revolution, the digital revolution. Individualism in data is massive so personal brands will take off like never before. I think globalization is under threat as we see major nationalistic movements led by the U.K. And U.S.A.

Local Heroes: The Entrepreneur Osama Natto

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I wanted to change the conversation on this blog, with the launch of a series of Q&As with people I know who are in the region and who are from the region and who are pushing for positive change. First up is Osama Natto, a Saudi gentleman who has worked in a range of roles. Today Osama’s focus is very much on encouraging entrepreneurship and innovation in the Kingdom. He’s touched thousands with his can-do attitude, his belief in local talent, and his love of technology.

I hope Osama will inspire you as much as he does me. If there’s someone you know who deserves a blog post, then please do drop me a note. In the meantime, enjoy the read.

Osama, tell us about your career and the choices that impacted your career?

I started working at a very young age in my father’s hardware shop in Makkah, Saudi Arabia. I used to clean the shelves and place price tags on products. I started with 10 Saudi Riyals a day, which around two and a half dollars. Working at the shop instilled in me workmanship, discipline, and how to be practical. It also built in me the sense of financial independency. I opened my first bank account as soon as I was legally old enough, and I started my first investment. When I joined the King Fahad University of Petroleum and Minerals I continued to work part time in odd jobs such as lab attendant, teacher assistant, and applications programmer at a shipping company. I also worked freelance as a tutor and research assistant to students. When I was a freshman I noticed a recruiting brochure at the dorm room of one of the senior students. The brochure was for Procter & Gamble. On that day I said to myself, “I will work for one company, I will work for five years only and that company will be Procter & Gamble.” And I did stick to my promise.

So, what made you become an entrepreneur?

My decision to become an entrepreneur was made when I was in my early teens. I was fascinated by success stories of Saudi businessmen such as Alwaleed Bin Talal and Abdulrahman Alzamil. I had my own ventures that made money when I was still in school including selling fireworks during celebration seasons, video production for family and school events, and selling custom made jewelry.

What made me become an entrepreneur is freedom. There is no price on personal freedom. Freedom in decisions, freedom in time, freedom in lifestyle, and financial freedom. This does not necessary mean being wealthy, but instead not being dependent on someone or an organization to make a living.

What entrepreneurial lessons would you share with others?

Dream big, look at what is holding you back. Most of what is holding us back are internal factors that can and will be overcome once we understand them. Focus on products that have an impact on people regardless of their age, geographic location or ethnic background. Stay away from service-based businesses as they tend to consume you.

How do you foster innovation, and why does it matter in this region?

Fostering innovation in the region is a bit challenging for many reasons. Understating of innovation, the innovation process, the availability of facilities and resources to foster innovation. Our region needs innovation the most due to the dependence on natural resources and the growing number of population compared to the availability of jobs. Only through innovation can we create new products, new markets and hence new jobs. There is an entrepreneurship movement in the region; what I would like to see is an innovation movement. My current venture is more about innovation and less about entrepreneurship. I want to build the innovative products that the world needs. I want to bring the Arabs back to innovation. Our Arab ancestors innovated many concepts and products which still serve as the basis of many innovations today.

What inspires you?

Nature and beauty inspire me.

How is technology changing how we work in the region?

Technology helped to a big extent to get rid of the borders. Anyone in the region with a computing device and a connection to the internet can create something and sell it to the world. Technology not just gave us access to the consumers around the world, it provided us with research and data available at our figure tips. With technology, you have access to unlimited talent and resources at affordable prices.

On my previous venture, I had millions of dollars and a team over 60 people working with me. In my current venture, I wanted to try something new so I started with $400, built a product by using resources from around the world and sold it to people from around the world by using my laptop and any internet connection that is now widely available and, in some cases, free.