ScamVille: Let's not be too hasty
There’s been a lot of hubbub in the social gaming / tech media recently about incentive rewards. These are typically used in social gaming to allow a user to earn currency by completing a bunch of marketing offers. However, some of these offers spark a lot of complaints because of how misleading or flat-out scammy they are.
You can read more here: http://www.techcrunch.com/2009/10/31/scamville-the-social-gaming-ecosystem-of-hell/
Or just view it in action: http://venturebeat.com/2009/10/31/video-of-arrington-shukla-fight-highlights-controversy-of-special-offers/
While this concept is new for a lot of people in the gaming space, the backbone of these offers have been in existence for many years, and likely you’ve even participated in one.
I wrote a comment on the topic, and thought it’d make sense to replay it here. Since then, some of the leaders have decided to remove some of the more scammy offers. I’d argue that they’d likely do this anyway, but it’s a smart way to help take a leadership position in this PR mess – other companies haven’t made as smart a move…
http://www.techcrunch.com/2009/11/01/scamville-hotornot-plentyoffish-facebook-myspace/
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Why The Face on all the hubbub about this stuff? It’s lead-generation advertising, people, and it’s the same low-response offers that have been around for ages. I give some credit to the Gambits, OfferPals, SuperRewards of the world for taking that existing model and making it fit into gaming and beyond.
But the core offers has long been provided by people at NetBlue, NeverBlue, Azoogle, and all these companies that you don’t hear much about, unless you happen to be a marketer looking to acquire masses of customers. They’re the same guys powering the ads on some of these networks. And if they’re not using the third-party, they’re definitely talking directly with the same exact advertisers.
The quality of leads are often terrible. The methods are spurious at best, but when you’re dealing en masse, the ROI from customers through these low response rates can actually make these cost effective.
I think it’s a little too easy to line up the social gaming companies and shoot at them for using these channels. Why not line up the hundreds of mainstream consumer services and marketers outside of gaming who have used the same exact offers from the same exact clients in lead-generation and affiliate marketing — they’re just doing it directly via the ad networks and not through the game-reward go-between. Look at any major subscription service, especially those in mainstream gaming, personals, hosting, photo services, personal finance, etc. — you’ll see many of them using affiliate systems.
And so the problem really is mostly with the advertisers, often affiliates. While they’re supposed to be held to a higher standard, it’s very difficult to police all of their methods, especially again, when you’re doing it at such large volumes. Thankfully, they’ve gotten better than they used to be, but there are always new affiliates and advertisers, and these are some of the most aggressive people you’ll meet in marketing.
I wouldn’t credit to the social-rewards companies for inventing a brand new way to make money, but I don’t think it’s necessarily fair to single them out. It’s in their best interests to weed through the chaff, and the ones I’m working with or have talked with are earnestly trying to do that. If you don’t have good offers, you won’t get repeat users, and the companies will stop integrating them. Customer satisfaction will force a finite lifespan on those who don’t weed the junk out.





