When Ad Campaigns Explode

Turner Broadcasting’s now infamous Boston cartoon campaign for Aqua Teen Hunger Force highlights the risks of new media promotions. When “guerrilla” marketing firm Interference, Inc. placed “sinister looking” boxes on bridges and depots in Beantown to promote the cartoon, what was supposed to be a playful surprise to passers-by turned into near panic over a possible terrorist threat. Turner had to apologize publicly, and it has been reported that Turner and Interference will pay the City $2 million in settlement. The incident is a wake-up call to marketers and the brands they serve to be vigilant: “Under-the-radar” advertising efforts have the potential to explode.

“Word-of-mouth” (WOM) advertising is not new. With the advent of new online “mini-celebrities” on MySpace and other public forums, many advertisers have embraced WOM campaigns hoping to capitalize on “real” personalities, mailing lists, and home pages of popular individuals for peertopeer promotions. For a period of time, the FTC took a “wait-and-see” approach in deciding whether such WOM advertising required a “paid endorsement” disclaimer. Significantly, last December, to little fanfare, the FTC issued a staff opinion that a seller’s relationship with a WOM campaign must be disclosed in some circumstances. While the FTC did not issue specific guidelines for WOM advertising, it noted that if “the consumer would not reasonably expect [the] relationship,” especially if the marketing message is directed to children or teenagers, a failure to disclose the relationship could constitute a deceptive trade practice. An FTC investigation of this type could lead to a cease-and-desist letter, potentially significant fines, undesirable publicity, and a loss of credibility in the marketplace.

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