PRobecast #144: Pinterest’s lack of transparency, tracking teen abuse, & Wal-Mart
February 9th, 2012 by Renatta Siewert
PRobecast 144: In this episode of PRobecast, Caitlin Smith, Josh DeStefano, and our newest Topazer, Amanda King, join me in talking about Wal-Mart’s attempt at technology to get ahead of the online shopping game, Pinterest’s not-very-transparent revenue methods, and an iPhone app designed to mimic teen relationship abuse.
A look at Wal-Mart’s high tech plans – Wal-Mart typically is known for its “everyday low prices” and not its technology reach. Some may even cite this as one of the reasons the giant has not been able to successfully break into the Northeast. However, Wal-Mart is trying to change that by building a tech center inSan Bruno,Calif., just south ofSan Francisco, which houses Walmart.com and a growing team of researchers. The mission of Walmart Labs is to study how mobile and social platforms are changing commerce, and how the line is increasingly blurring between online and offline shopping. For instance, the team rolled out Shopycat over the holidays on Facebook, which recommended gifts based on a friend’s interests. The notable part was that the gifts did not necessarily come only from Walmart, but other retailers, as well. “It was the first time we sent traffic to a non-Walmart site,” Rajaraman said. “But if we want to be a place to find gifts, we thought the right thing to do was to include other retailers.” Do you think this will help Wal-Mart’s image in being a small business crusher?
Love is Not Abuse: A Liz Claiborne Effort – Liz Claiborne, a well-known brand, has used their reputation to increase awareness about abuse in teen relationships. The iPhone app, called Love Is Not Abuse, sets out to teach parents about warning signs and how to help his or her teen. Over the course of the experience, text messages, emails and phone calls will be received real-time, mimicking the controlling, abusive behaviors teens might face in their relationships. There are several other partners involved in the effort. What will the best way to get this out to parents be? In many cases, it’s the teen with an iPhone, not the other way around.
Is Pinterest pocketing revenue by tracking user-generated pins? – Pinterest has become the hottest startup on the web in these past few weeks. But a new report from social media blog LLSocial reveals that the site may be “quietly” generating revenue by adjusting and tracking the links attached to pins that are posted by users. LLSocial noted that Pinterest may be collecting money through an affiliate program when pins are connected to ecommerce sites. For example, a picture of a sweater pinned to someone’s online board might have a link that connects them to a site where the sweater can be purchased, and this is when Pinterest reportedly steps in. “If you post a pin to Pinterest, and it links to an ecommerce site that happens to have an affiliate program, Pinterest modifies the link to add their own affiliate tracking code,” LLSocial said. “If someone clicks through the picture from Pinterest and makes a purchase, Pinterest gets paid. They don’t have any disclosure of this link modification on their site.” Making money is all well and good, but do you think this will hurt their reputation? After all, if we’ve learned anything from social networking since 2004 (Facebook’s humble beginnings) it’s that transparency is key.
Now it’s time for the PRobecast PR Power Ranking – which is when we go around the room and pick the story that we think ranks the highest PR-wise – meaning any aspects of PR could be the reasoning behind the pick. Is it the story itself, good data that was used, what’s getting the most pickup, was it a good PR move the company made, etc.
We chose Pinterest, because we’re all pretty impressed by their recent growth. The past three months alone have seen a huge spike in users, and not just the average user, but companies as well. However, while this growth and success is great, it’s still important to be transparent about the way you incur revenue. Don’t try to pull the wool over your users’ eyes; we’ve all learned that through our experiences with Twitter, Facebook, and Google.
Who do you think should have won?
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