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.

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.

purchasing-decision

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.

Influencers & the Importance of Credibility – an Example from SeaWorld Abu Dhabi

life-lessons-article-by-khalid-alameri-in-the-national

When choosing influencers, brands and publishers need to ask themselves if the person has the credibility and expertise to influence others.

As anyone working in comms will have noticed, 2016 was the year of the influencer. That trend will not only continue into 2017, but it’ll pick up pace. Everywhere you will look, you’ll see brands and organizations working with influencers to address public issues with their stakeholders.

There’s many issues around working with influencers. One, which I’m going to highlight here, is the importance of credibility. Often brands (or publishers) will seek out an influencer  who has a wide following and is popular. That’s unfortunately not the best approach to follow. Instead, brands need to think about credibility, by asking themselves if the influencer they’d like to work with is 1) an expert in this field, and 2) has talked about the issue before, and 3) are considered to have integrity.

I’ve talked about this topic before, most notably when Etisalat brought on-board a load of social media influencers from rival Du. It’s a topic I’ll probably have to keep coming back to again and again, as brands (and publishers) keep on making the same basic mistake.

A fellow communications professional shared with me an opinion piece from the Abu Dhabi-based English-language newspaper yesterday. It was on why Abu Dhabi and SeaWorld will be a good fit, and why both will benefit the wider environment. The piece was written by Khalid AlAmeri, a well-known and well-respected influencer.

The piece is well-written in terms of the argument, and while I could argue to the contrary I’m going to focus on the choice of the influencer. Firstly, Khalid writes prolifically on entrepreneurship and issues around Emiratisation. He’s well-known and admired for this work. However, he’s not an expert on the environment or wildlife (if he is, his expertise should be highlighted here). He’s highlighted some criticisms of SeaWorld, which is the sign of an experienced writer who knows how to engage in a debate. But again, why should I believe someone who firstly isn’t an expert in the field, and who hasn’t written previously on the subject.

I’ll be the first to admit that it’s not an easy task to find influencers on issues that aren’t mainstream (fashion, food and travel). However, there are organizations in the UAE which do oversee the environment, such as the Environment Agency Abu Dhabi (which I assume Khalid references in the piece), or the Emirates Diving Association. There are also associations and people who take part in marine life conservation, such as the Dubai Turtle Rehabilitation Project. These bodies would have made for a much more powerful and compelling argument, primarily due to their expertise. Knowing this, I’d be much less willing to question their lines of argument. As it stands, Khalid’s opinion piece is weakened due to his lack of credibility in this area (as opposed to his expertise on entrepreneurship). To me, that lack of expertise weakens an argument rather than promotes it.

Will Saudi’s telcos, government charge Saudi consumers to use social media?

Saudi is a country that isn’t well understood by many, especially by communicators. However, for all of the stereotypes the Kingdom has the capacity to surprise. Take for example a piece published by Saudi Arabic-language newspaper Al-Watan on the 15th of December. If true, the short story was a good piece of investigative journalism. To summarize for non-Arabic speakers out there, a number of telecommunications companies have met with the Communications and Information Technology Commission, the national regulator which oversees the telecommunications industry, to discuss levying on consumers a charge for social media services (the full story in Arabic is below).

Saudi telco operators have apparently met with the national regulator to discuss levying a social media charge on consumers, according to this piece in Al-Watan

Saudi telco operators have apparently met with the national regulator to discuss levying a social media charge on consumers, according to this piece in Al-Watan

The Kingdom has the most active social media base in the region; Saudis are avid users of services such as Snapchat, Twitter and YouTube. Saudis have taken to social media to call for boycotts against the telcos for what they describe as poor service and high costs. Quite understandably, this report didn’t go down too well with Saudi consumers. A new hashtag was conceived, named fees/charges on social media (#رسوم_علي_مواقع_التواصل).

The regulator has moved to deny the initial story – Al-Watan carried a denial piece the day after. However, partly due to a lack of trust in both the telcos and the regular, many Saudis online have expressed their belief that the news is true. The report prompted many Saudi influencers to share their own views online on the quality of service offered by Saudi telecommunications firm; below is a vblog by Saudi Gamer.

Globally telcos have been seeking solutions to redress the challenge of revenues lost to social media channels or applications which offer lower or free services such as messaging and calling. The issue is going to get worse, according to London-based research and analytics firm Ovum. The telecommunications industry will lose a combined $386 billion between 2012 and 2018, the firm predicts, from customers using over-the-top (OTT) voice applications such as Skype, or Whatsapp.

Some operators such as Verizon are looking to become content producers as well as deliver the content through the pipes. However, charging consumers for accessing social media would be a short-term but unpopular option for telcos to use as they seek to fill the revenue gap. How much it may impact online consumer behavior and advertising is anyone’s guess. We may find out next year.

The need for clear communications – Saudi’s drive to balance the books

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Saudi’s social media scene has been on fire over the past week due to a number of controversial issues regarding government officials. This is a news story from the Times on a comment made by a minister regarding Saudi inefficiency.

This week has been an interesting one for Social Media watchers in the Kingdom. Thousands of Saudi nationals have taken part in online campaigns/used popular hashtags relating to three high-level government officials who have either made controversial statements or who have been accused of using their influence on behalf of family members (you can see media coverage on two of the issues from Saudi Gazette here and Arab News here). The campaigns follow a decision a month ago to cut benefits for Saudi government employees. The decree, which was made in light of low oil prices and a rising Saudi budget deficit, is biting hard; this week Reuters reported that the Saudi central bank had asked retail banks to reschedule property loans for those affected by the cuts.

One of the campaigns began after a government document was leaked online, with personal details including name, position and salary. It’s only logical to assume that many government officials in the Kingdom are angry at seeing their pay cheques shrink; they’ll become even more angry when they see what they feel to be others not doing the same. In this environment, it wouldn’t be hard to also imagine officials being able to take a picture via their smartphone of a document which may reveal an embarrassing situation and then sharing it via social media (or, more likely, dark social).

I had the pleasure of listening to a senior Saudi journalist this week. He made a pertinent point when he said, “We can spend billions on consultants. We could have spent millions on a PR agency to convey the message behind the cuts and why they were necessary.”

In times of hardship, good communications becomes even more important. Saudi’s citizens need to understand the logic behind government decisions. They need to feel that they are engaged and are part of the debate. And they need to see government’s leadership doing just that, namely leading by example (as I’ve said before, actions are much more powerful than words in shaping perception).

We may see more issues coming to light in the Kingdom over the coming months, and more skeletons being revealed in government closets. When it comes to the government’s engagement and communication with its people, the transparency, clarity and consistency (or lack of) will either help get many Saudi citizens on board, or it may alienate them further. I for one hope it’s the former, rather than the latter.

 

How will Snapchat’s Dubai opening change the region’s social media landscape?

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The Middle East’s social media scene is going to get much hotter with Snapchat opening up in Dubai (image source: hashtag-me.com)

It’s finally happening. The ephemeral social media network, the reason behind the doggie nose pictures and floral crowns, is coming to the Middle East. Yes, Snapchat is almost here. The story was broken by Communicate Middle East last week, with Cairo-based online publisher Digital Boom adding more details. I’ve included all the information below from both stories.

As reported by multiple industry sources, Snapchat is ready to make its entry into the Middle East market with its first office in Dubai toward the end of this year.

Heading the operation will be Hussein Freijeh, who is best known for his long-standing role with Maktoob – and then Yahoo – for more than a decade, until Yahoo shut down its Middle East operations in late 2015.

While pricing levels have yet to be set for Middle East customers, Snapchat will be offering a number of products, including geofilters and SnapAds. The service, which is especially popular with internet users under the age of 18 across the Gulf region, revealed in June that 150 million people were using the service each day globally, surpassing the daily active users on social media micro-site Twitter. The app had 110 million daily users in December 2015.

Snapchat’s timing of its move into the region is fascinating. The company may IPO as early as March next year, and the Gulf is a fast growing market for the firm’s app (possibly its fastest worldwide). How will brands react? It’s a difficult one to say, as Snapchat has an interesting range of advertising products which are different from anything in the market. In terms of the youth market, Snapchat will be the key platform to use. However, how will this affect spending on other platforms? Will Snapchat pull in dollars from Instagram, its closest rival, or from other platforms such as Facebook, Twitter and YouTube.

What is clear is that with Snapchat opening up its platform to advertising in the MENA region, brands here will have to develop a Snapchat presence and start learning about this unique social media channel. To date, there are few Arab brands on the site (Souq.com, Al Hilal Bank and a couple of hotels are some exceptions I know of), and brands will face a steep learning curve if they’re to get the best out of Snapchat and engage with its young audience.