People read blogs because they are interested in the thoughts, experiences and knowledge that a blogger has. The best blogs also entertain, too. But what they do not do is paid editorial advertising - that’s for the banner ads. When a blog writer gets caught accepting payment for positive product mentions, what follows is a PR disaster, all the worse because other bloggers feel that their world has been tainted.

That’s why TechCrunch quickly made a big deal of it this week when an intern of theirs got caught being rewarded with a laptop for a post: he got fired and all his posts got wiped immediately. No names were given, and reaction seems to be that TechCrunch’s responded well and maintained their credibility. A few bloggers though, traced the guy’s identity and wondered who was willing to pay him - it’s a known rule of the game that any interests must be declared. The unfortunate thing is that innocent startups had posts about them removed and may also come under suspicion of bribery, too!

If a positive blog post is worth getting, it is prominent enough to get some scrutiny too. If the writer gets paid, the truth will comes out, readers will naturally react in three ways:

1. Not to trust the writer again
2. To assume a company paying for positive mentions could not get them any other way
3. Not to trust such a company

This is something that has not really dawned on some European companies, who see blogging as a legitimate form of paid advertising - in fact, one Swiss social media marketing company, Trigami, bases its business on getting paid blogging coverage. It will eventually dawn on their customers, I think, that this is not what social media marketing really is. The fact that their business model is not big news in the blogosphere is probably simply because they are only doing it in German - if they start with English-language ones, wait for the storm! However, regardless of language, the basic rules of SMM - be open and helpful, and network for all you are worth - may mean hard work, but they are there for a reason!

Not for the first time, a giant corporation is attracted by the value proposition for online marketing, but gets caught disrespecting its rules, and loses the positive impact it was looking for. According to a recent Frankfurter Allgemeine Zeitung article Vodafone is reputed to be spending up to €200 million on persuading young people (”Generation Upload”) via placards and via the Web (YouTube, Twitter, etc), to use their mobile phone as their primary Internet access device at all times of day. But they are openly paying bloggers to promote them. One of these bloggers, Sascha Lobo (pictured), has up to now opposed Vodafone’s stance of supporting government proposals about restricting internet access, and his involvement is causing a real storm.

Some of the other criticisms of the campaign in the article:

1. “Generation Upload”  consists mostly of people who’ve uploaded one or two videos in their lives. So is the market really there? At some point, probably, but via paid-for access on their mobile phone? The evidence is at best equivocal - even iPhone users predominantly use wifi access rather than mobile internet.

2.  It’s not at all clear what the value proposition is - the campaign seems to be mostly about image projection. According to Tobias Langner, Professor of Marketing at the University of Wuppertal, getting people to spend more time online is best served by making the tariff more competitive - particularly difficult if ROI means covering a massive advertising campaign.

3. How will glossy posters in train stations convince an audience defined by its adherence to the web?

The fundamental principle in online marketing is authenticity -  products and presence that inspire people to blog about you, not paying them to do so. Vodafone has not convinced yet with its offering, and is paying for blogs, both of which are likely to provoke criticism. But even criticism provides an opportunity for positive engagement. Is that opportunity taken well? This is the comment that Fritz Joussen, CEO of Vodafone Deutschland, made in response to critical blog posts:

“We’re talking about 500 blog contributions, and we make products for 40 million customers. I’m happy to talk with bloggers about our products, but not to discuss my view of the world.” (my translation). In a few weeks Vodafone may realise that they don’t want all the flak that is coming their way and follow the golden rules - listen respectfully, admit problems, be positive, engage. But I’m not betting on it yet.