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

social media influencers

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

Dubai-Lynx-Branding-in-Asia-696x496

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

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.

Guest Blog – How To Meet Your Customers Changing Expectations

We've gone from digital natives to mobile natives. As consumer expectations change, how can we communicators remain relevant? (image source: www.mirror.co.uk)

We’ve gone from digital natives to mobile natives. As consumer expectations change, how can we communicators remain relevant? (image source: http://www.mirror.co.uk)

I’ve asked a number of prominent communicators to talk about the importance of communications and design when it comes to customers. Julio Romo (on Twitter as @twofourseven and on LinkedIn here), an International Communication Consultant and Digital and Innovation Strategist, shares his insights on how communications is changing and how customer experiences are impacting our jobs as communicators. Julio, over to you.

How To Meet Your Customers Changing Expectations

People around the world are today more connected than ever before. Let it be through social media, smartphones or both. The way we are now connected has influenced and changed the way in which our beliefs and expectations are shaped.

Let me give you some facts. There are over 2.3 billion social media accounts worldwide – Facebook has 1.79 billion monthly active users (92% access via mobile), Twitter has 313 million active monthly users and Instagram has 400 million monthly active users. These are very top line numbers. They are Impressive, but missing some context.

Now the context, one in every six minutes that is spent online is spent on Facebook, 2.5 billion comments are made on Facebook Pages, 6,000 Tweets are sent every second. The more content that is out there the quicker that we must be to filter out what we think is not relevant to what we want to learn.

Research by Microsoft also tells us that our attention span is now down to 8 seconds, that is shorter than that of a goldfish. The speed at which we make decisions has also shortened to what Adobe calls, the last millisecond. We live in extraordinary and highly competitive times.

People have changed how they make decisions. Today it is the experience that they get from their engagement that shapes their perceptions and decisions-making. Get the experience right and in a fraction of a second you keep and possibly convert an individual. Get it wrong and you risk loosing your customer, possibly for good.

Think about it this way:

And the benefits? Well, insight from Bain & Co tells us that increasing customer retention rates by 5% increases profits by 25% to 95%. Not bad at all.

Experience that your audiences receive matters. Design and the way in which they interact with you certainly matters. And today, the customer matters more, and they know this.

The customer journey has to be simple and rewarding. It has to deliver an experience that not just converts them, but gets them to return and amplify the positive engagement that they’ve had. And it is in this connected world that reputations are built and broken.

A McKinsey report states, ‘Consumers now have much more control over where they will focus their attention, so companies need to craft a compelling customer experience in which all interactions are expressly tailored to a customer’s stage in his or her decision journey.

So how do we secure better engagement from our target market and audiences? That is simple, yet not very straightforward. Organisation must become agile and nimble. They must become better at listening and learning. And their communications and marketing must be always-on and responsive – be ready to respond to customer service issues. Our digital touch points need to be built around the personas of our audiences, yet bearing in mind that like technology, peoples behaviour and expectations changes fast, especially when start-ups come into play disrupting business as usual.

Some companies have already embarked on a journey of change to ensure that they remain relevant. In 2005 the former FT US Technology Correspondent and Columnist Tom Foremski coined the term ‘Every Company is a Media Company.’ A term that still to this day is alien to many. Yet some organisations have changed their PR and communications teams into modern day brand newsrooms that monitor news, deliver content and engage through social channels.

Having and understanding of the audience and designing for them will give companies access to a global market that in 2014 McKinsey thought this year could have been worth $2 trillion in potential sales. Being nimble and agile is a must. Having your communications, marketing and customer service teams working together is what will help your businesses grow in a competitive market.

After all, bad news travels fast on social media. According to Zendesk, bad experiences are shared with more people than good experiences, and more customers share bad experiences than good through social networks like Twitter and Facebook.

Today, people who complain are the ones that you know about. People expect and we must deliver, we must be what they expect, more customer centric. Because it matters to our reputation, our business and in competing markets it gives us competitive advantage.

The building of successful businesses today depends on the gaining of more insight about audiences. Understanding their behaviour and decision-making and roadmappiing their journey so that they find what they want on platforms relevant to them.

Now more than ever we have to move towards acting on insight and data in order to secure attention and engagement from people.

Two-Thirds of UAE Residents Will Take Advice from Social Media Influencers on a Purchase, Apparently…

Now, this may shock you. But, we’re all now listening to social media celebrities to decide what we want to buy and eat. At least, that’s the result of research carried out by PR agency BPG Cohn & Wolfe with YouGov. Out of over a thousand people surveyed, 71 percent of those aged between 18 and 40 said they’d be happy to take advice from their favorite social media influencer before buying. And if you don’t believe me, Results for BPG Survey (Fashion Food, & Beauty Influencer), see the press release or have a look at the infographic below.

The growing power of social media influencers and bloggers has been borne out by new research from Dubai-based PR agency BPG Cohn & Wolfe that shows that 71 per cent of UAE residents aged 18-40 are happy to take advice online before purchasing.

 

Beauty, fashion and food are the areas where residents are most likely to turn to leading social media influencers for recommendations say the results of the research undertaken for the agency by YouGov who interviewed 1000 men and women across the country.

 

Tech-savvy residents used their smartphones to follow their favourite influencers with 68 per cent of those polled admitting that where they eat out can be prompted by online recommendations or reviews and 63 per cent more likely to buy fashion or beauty products based on what these influencers might say.

 

BPG Cohn & Wolfe PR Director, Consumer Practice, Taghreed Oraibi managed the research process and said: “We are working closer than ever with bloggers and influencers and wanted to find out just how influential they have become in a country that is more switched on and digital than many all over the world.

 

“The results have clearly shown that companies now have to take these online influencers seriously and listen to what they have to say and find creative and engaging ways to work with them to tell their story and reach customers in that vital 18-40 demographic.

 

“BPG Cohn & Wolfe has identified the rise in influence of bloggers for some time and this led to commissioning the research to assess just how widespread their influence is and in what areas they have the most impact.”

 

BPG's research has found that over two thirds of UAE consumers will take advice from social media influencers before they buy. But what does this really mean?

BPG’s research has found that over two thirds of UAE consumers will take advice from social media influencers before they buy. But what does this really mean?

The issue of social media influencers is controversial (have a read of this guest blog post from yesterday by Rijosh Joseph). I’m personally a fan of working with social media influencers when they’re used strategically (i.e. who they are and what they do is aligned to the brand they are working with), when there’s a long-term commitment rather than an agreement for a single post or three, and when the goals are clear and there’s a sensible set of measurement metrics in place.

And, I’ll be honest, I don’t see many organizations in the region thinking through what influencer engagement can do for their brands or customers. Instead, it’s a ‘me-too’ approach. I hope I’m wrong.on this (if I’m wrong, then tell me). In the meantime, I’ll be listening to my influencers when making my next purchase, namely my wife and daughter.

WhatsApp and why communicators should care about Dark Social (at least in a crisis)

When it comes to harmful materials, WhatsApp should be a key source of concern for communicators in the Gulf

When it comes to harmful materials, WhatsApp should be a key source of concern for communicators in the Gulf

Let me ask you a question. Name the most popular application on the phones of consumers in the Gulf. It’s not Instagram. It’s not Twitter, and it’s not Snapchat. As you clever ones may have guessed from the title of this post, it’s WhatsApp. At the last count, in a survey by TNS in 2015, the instant messenger app was used by 84% of smartphone users in the Gulf. And yet, it would seem that WhatsApp is hardly used, either by marketers or by communicators.

Part of the challenge is that WhatsApp is a closed network. It’s dark social, a term coined in 2012 that refers to online activity which cannot be monitored. WhatsApp and other applications such as WeChat and Facebook Messenger cannot be mined for data, and as they’re closed the only persons who know what is being written or shared are the sender and the recipient.

And that’s often the problem. For people who are responsible for looking after corporate reputations, ignorance definitely isn’t bliss. I wanted to understand more about WhatsApp and what it means to communicators during a crisis. And so I asked them. I asked communicators in the Gulf what WhatsApp means to them. And I want to share their responses with you.

First of all, let’s start with what communicators are using. The most popular social media channels for communicators are Twitter, Facebook, and Instagram. These are followed by LinkedIn and YouTube. Snapchat and WhatsApp are the least used, which is surprising considering their popularity in the region. This may suggest communicators are still struggling on how to use such channels.

Open platforms are the most popular among communicators. Dark social platforms are less popular.

Open platforms are the most popular among communicators. Dark social platforms are less popular.

What’s interesting is the channels that are used during a crisis. While Twitter again comes out tops, followed by Facebook, other channels don’t figure as much.

Twitter and Facebook are the two most popular social media channels during a crisis

Twitter and Facebook are the two most popular social media channels during a crisis

The majority of communicators I spoke to do see WhatsApp as a factor in the spread of harmful materials. However, relatively few have experienced crises over the past year.

The majority of comms practitioners have not seen a crisis spread over WhatsApp in the past 12 months

The majority of comms practitioners have not seen a crisis spread over WhatsApp in the past 12 months

What’s also illuminating is confidence in dealing with a crisis online. When asked about a generic crisis on social media, communicators were fairly confident in dealing with the issue. When you throw WhatsApp into the mix, that confidence level drops.

On the left, the question asked was, "I believe my organization is prepared for a social media crisis." On the right, the question asked was, "I prepared my organization is prepared for a crisis spread on WhatsApp."

On the left, the question asked was, “I believe my organization is prepared for a social media crisis.” On the right, the question asked was, “I prepared my organization is prepared for a crisis spread on WhatsApp.”

The issue that many of us face online is decreasing levels of trust in brands, particularly when it comes to social media pages. Whereas a couple of years back consumers believed that reaching out to branded Facebook pages or Twitter accounts would solve their issues, few hold such beliefs today. Add in issues such as defamation for online comments, and it’s no surprise that consumers are turning to WhatsApp to share their views with their friends and family and to ask them to take action against the brand.

Based on this research, there are a number of recommendations communicators (and marketing folks) need to take into account when it comes to dark social:

  • Communicators need to be familiar with dark social – it’s apparent that consumers are online and are using dark social tools to communicate. Communicators need to be conversant in these tools if they’re going to be effective in getting across organizational messaging, particularly during a crisis.
  • Dark social tools need to be part of crisis planning – one question which wasn’t asked was to do with which social media tools formed part of crisis planning. However, it’d seem that dark social doesn’t come into consideration when planning crisis scenarios or a response. This needs to change.
  • Communicators need to utilize dark social – certain industries, such as the media sector, have begun to make use of dark social in their public outreach. Communicators in this region may be advised to look at adding dark social to their social media planning, to increase the level of engagement and also to understand how much such channels are used vis-à-vis open channels when sharing from websites and other public sharing channels.

If you’re interested in the full research, drop me a note. Sharing is caring, especially when it comes to crisis communications and social media