In recent years, “stealth marketing” has become a hot topic as an Internet buzzword award, and has even developed into a social issue. Although many
marketers
have heard of the word stealth marketing, they may not be familiar with the specific actions it refers to, its meaning, or the content of advertisements.
In this article, we will explain in detail the meaning of the word stealth marketing, its challenges and problems, as well as regulations and penalties for stealth advertising.
What kind of behavior is stealth marketing?
Stealth marketing is an abbreviation for stealth marketing, and it refers to conducting sales promotion activities in a way that hides the fact that it is an advertisement from consumers and prevents them from realizing it.
The spread of social media such as X (formerly Twitter), Instagram, and Facebook has enabled a wide variety of information dissemination and advertising activities, and the risk of stealth marketing is thought to be becoming more serious.
Meaning of stemma
Overseas, it is also called undercover marketing, which means “to do it secretly.”
It is characterized by the fact that it is carried out under the guise of a general consumer so as not to be noticed as an advertisement or sales promotion, and involves celebrities, celebrities, influencers, etc. promoting products or services without disclosing that it is an advertisement or promotion. If you have someone do this for you, it is also eligible for stealth marketing.
Steal marketing can be said to be similar to so-called “sakura” in the sense that it is an act that intentionally hides the fact that it is an advertisement or promotion despite having some relationship with a product or service. Sakura means a fake customer, and refers to someone who pretends to be a customer and increases the purchasing motivation of those around them, such as by praising or buying things.
Similarly, stealth marketing intentionally deceives consumers and creates a good impression by posting highly rated testimonials on blogs and information sites, or manipulating comments on SNS and word-of-mouth sites, while concealing the fact that they are advertisements. It is an act of trying to have.
History of stemma
Stealth marketing is a word that was born around the time when the Internet began to be actively used, but as it includes the word stealth, it was originally a word that was born overseas. In Japan, the word “Sakura” has been used for a long time, and it is safe to consider Stemware and Sakura to be almost synonymous.
However, there is one major difference between Stemware and Sakura, and that is the “scope of coverage.” While Sakura can deceive only specific users, stealth marketing can deceive all users on the Internet depending on the details of the strategy.
Even today, YouTubers with many subscribers and highly influential celebrities engage in stealth marketing, and there are many cases where consumers mistakenly believe that their favorite person is genuinely recommending a product. Given this background, it is also true that stealth marketing is seen as more of a problem than Sakura.
Difference between “Sutema” and “Dyma”
First of all, Stealth Marketing is an abbreviation for stealth marketing, which refers to sales promotion activities that are carried out in such a way that consumers do not realize that they are promotions or advertisements. “Stealth” means “to do something secretly” and is an English word that describes highly stealthy behavior.
Daima, on the other hand, is an abbreviation for direct marketing, and refers to conducting sales promotion activities by communicating directly with consumers. “Direct” means “directly, straight” and is an English word that expresses a fair and honest feeling of action. In other words, it is a contrasting image to stealth.
The “Daima” used by the younger generation has a slightly different meaning from the original Daima.
“Dyma” is often used by the younger generation on SNS etc., but it seems to be used in a slightly different way from the original definition of direct marketing. Originally, direct marketing involves building relationships with specific customers who are already interested in a product or service, and then conducting sales promotion activities.
When it comes to marketing carried out by salespeople, in many cases the customer has already consented, so it is not a unilateral effort like a hard sell. On the other hand, Daima, which is frequently used by the younger generation on SNS, tends to be seen as simply “advertising without concealing it.”
It is also considered to be “to an unspecified number of customers,” rather than “to a specific customer,” which is the usual definition of direct marketing. For example, this would be the case where an individual who has no connection to the product or service in question voluntarily spreads the message and personally promotes it, saying, “It’s just a deal,” after saying no. Due to the large number of cases like this, it can be said that among the younger generation, “Dyma” is used with a slightly different meaning from the original “Dyma”.
There are two main methods of stemming
When it comes to stealth marketing, there are two main methods.
Let’s look at each in turn.
impersonation type
Spoofing is stealth marketing in which a company or individual pretends to be a third party unrelated to their product. If your company’s employees advertise your products, they tend to shy away from you, but by pretending to be an unrelated third party, you can advertise without attracting suspicion from consumers.
Additionally, there are cases in which companies secretly post bad reviews about their competitors as a negative campaign, but this should never be done as it involves legal risks.
Profit type
Profit-based marketing is stealth marketing in which you ask influential influencers to promote your business. There are two ways to provide profits: one in which a fixed fee is given, and the other in which a percentage of sales is given. These are decisions to be made between the company and the influencer, so it is not clear which one is better.
However, to consumers, either method looks like a product used by their favorite influencer, so many people view it as malicious stealth marketing. However, from a company’s perspective, it is true that sales can be greatly increased, and it is important to consider the balance between not raising suspicions.
Why is stealth marketing a problem?
When consumers receive stealth marketing, they are unable to make correct decisions and choices regarding the image and purchase of the product or service. This is because the proper evaluation that was originally supposed to be done by stealth marketing is controlled, and consumers no longer know which third-party voices they can trust.
Furthermore, from the perspective of consumers who have been given a false image, they feel that they have been “deceived” by the company, and if they go so far as to purchase products or services, they may feel that they have suffered a significant “loss” or “disadvantage”. You might feel like it. As a result, there is a possibility that trust in the company may be lost all at once, and the impact may be felt not only on a specific organization but also on the entire industry.
The risks to companies when stealth marketing is discovered are immeasurable. In recent years, ESG (Environment, Society, Governance) has become more important as a corporate value, and a negative brand image over the long term can be a major negative for business growth, and once trust is lost, it is extremely difficult to regain it. It can be said that
Companies that have engaged in stealth marketing are required to clarify the actual situation and take thorough measures such as reviewing their crisis management systems and preventing recurrence. They do not think too deeply about the meaning and risks of stealth marketing, and only pursue “spreading the word efficiently and reducing costs” and “increasing purchase intent more than normal advertising”, and conduct dishonest advertising that easily deceives consumers. That is not acceptable according to social conventions.
It is important for companies to deeply understand that stealth marketing is a malicious act that violates morals and is an ethically problematic
marketing strategy
.
Steal marketing is illegal! Possible risks
There are three main risks with stealth marketing:
There is a risk that the credibility of the company will decline.
If stealth marketing is exposed, the credibility of the company will be greatly reduced. If the credibility that you have gained so far declines, there is a possibility that sales of all your own products, not just those sold through stealth marketing, will decline.
may catch fire
If stealth marketing is exposed, there is a possibility that it will become a hot topic. In the past, there have certainly been cases where products impersonating influencers and requesting stealth marketing have gone viral, and even though the product itself has not changed at all, the sales of the product have changed significantly before and after the incident. Ta.
It may be illegal not only in Japan but also overseas.
In Japan, stealth marketing regulations have been enforced since October 1, 2023, and stealth marketing has officially become subject to violation of the Act on Premiums and Representations. The main thing that is regulated is advertising, and all cases where consumers cannot recognize it as an advertisement are considered stealth marketing.
In addition, the United States and the United Kingdom implemented regulations on stealth marketing earlier than Japan, and stealth marketing is considered an illegal activity overseas as well.
Why stealth marketing won’t go away
Although stealth marketing is seen as a problem, why does it not disappear as a marketing measure? There are two possible reasons:
Because advertising costs can be reduced
When a company sells a new product, it incurs at least 10 million yen in annual advertising costs. Naturally, this is a very large amount for small and medium-sized businesses that lack business strength.
To aim for buzz
On the other hand, in the case of stealth marketing, you can advertise for hundreds of thousands of yen, and you can also aim for buzz by getting introduced by influencers, so there is a high possibility of making sales while keeping advertising costs low.
Points to prevent suspicions of stealth marketing
Although stealth marketing is seen as a problem, it is an excellent marketing measure for creating buzz and increasing awareness. So, here are three points to avoid suspicion when actually working on stealth marketing.
Do not disseminate information that is different from the facts
In order to avoid suspicions that it is a stealth marketing campaign, it is necessary to avoid disseminating information that is different from the facts and to clearly state that it is an advertisement. Although stealth marketing is an advertisement that is carried out without being perceived as an advertisement, it carries the risk of becoming a hot topic if it is discovered in the future that it is an advertisement.
Be sure to clearly indicate that it is an advertisement.
If it is an advertisement, it is important to let consumers know in advance that it is an advertisement by clearly stating “This is an advertisement” and “This is part of PR.”
Check out influencer posts
No matter how much you trust an influencer, always check before posting. Your company may notice things that influencers don’t, so make sure to revise posts that may pose a risk of flaming, or rewrite them as necessary.
Regulation of stealth marketing in Japan
We will explain the regulations on stealth marketing in Japan.
Background to why stealth marketing was regulated in Japan
The reason behind the regulation of stealth marketing in Japan is that stealth marketing using celebrities has become so rampant on SNS that the number of consumers being deceived has increased. The use of celebrities made it easier to sell and was viewed as a problem because it clouded consumers’ judgment.
However, in such cases of stealth marketing, the current laws such as “misleading representations of superiority (Article 5, item 1 of the Act on Public Relations)” and “misleading representations of superiority (Article 5, item 2 of the Act on Public Relations)” are used. Since this does not apply, it was not subject to the crackdown.
Therefore, in order to regulate these acts, a panel of experts called the “Study Group on Stealth Marketing” was established in September 2020, and discussions were held regarding the introduction of stealth marketing regulations.
Then, on December 28 of the same year, the stealth marketing report was published, and it was the third “misleading to general consumers regarding matters related to transactions of goods and services” following the “misleading representations of superior quality” and “misleading misleading representations of advantage” under the Premiums and Representations Act. It was recognized that there is a risk of misrepresentation, and it was deemed appropriate to designate it as a misrepresentation as specified by the Prime Minister (Article 5, Item 3).
As stealth marketing using celebrities became rampant, regulations on stealth marketing began to be implemented in Japan as well.
Stemming regulations that came into effect from October 1, 2023
On March 28, 2023, the term “misrepresentation” was added to the “Act on Prevention of Unjustifiable Premiums and Misleading Representations = Act on the Prevention of Unjustifiable Premiums and Misleading Representations.” Advertising is primarily regulated, with restrictions placed on displays that cannot be recognized as advertisements by general consumers.
Effective from October 1, 2023, stealth marketing is officially considered an illegal act in Japan and is subject to violation of the Act on Premiums and Representations. Only businesses, which are advertisers, are subject to stealth marketing regulations (violation of the Act on Premiums and Representations).
In other words, “third parties” such as influencers and affiliates who post and publish advertisements are not subject to stealth marketing regulations. Businesses that are advertisers will be subject to stealth marketing regulations if they do the following while hiding the fact that it is an advertisement.
Businesses themselves post and post about their products and services.
Posting and publishing by business operators themselves while concealing the fact that it is an advertisement is subject to stealth marketing regulations. Everything that is done using SNS, including websites operated by business operators, is also subject to stealth marketing regulations.
Posting and posting by businesses and their employees impersonating third parties
Posting and publication by businesses and their employees impersonating third parties is also subject to stealth marketing regulations. Even if you are not an employee of a business, you will be subject to stealth marketing regulations if it is determined that you have a certain relationship with the business, such as a subsidiary.
If the business operator intentionally instructs or requests a third party to post or publish the information
Steal marketing regulations also apply when a business intentionally instructs or requests a third party, such as an influencer or affiliate, to post or post about a product or service.
For example, this includes the act of conveying the characteristics of a product or service in detail and giving instructions on where you would like us to recommend. Such acts are subject to stealth marketing regulations as they impede a sound review by a third party.
In other cases where a third party is allowed to post or publish information that is comprehensively pro-business, etc.
Even if a business operator does not directly instruct or request a third party, it may be subject to stealth marketing regulations depending on the nature of the interaction with the third party.
For example, in the process of e-mail or verbal communication between a business and a third party, the third party may be compensated and end up making a post or publication that is in favor of the business. Applicable. Even in cases where such control is difficult, the operator is responsible, so extreme care must be taken.
Penalties for violating stealth marketing regulations
Steal marketing regulations are a violation of Article 5, Item 3 of the so-called Premiums and Representations Act. First, the Consumer Affairs Agency issues an order to take action.
As a result, businesses that violate the law will be subject to penalties such as having their company name published, and will be required to retract their actions, delete misleading advertisements, and take measures to prevent recurrence. Failure to comply with this order will result in imprisonment for up to 2 years or a fine of up to 3 million yen.
Global regulations regarding stealth marketing
Overseas countries such as the United States and the United Kingdom have enacted laws and regulations regarding stealth marketing before Japan. In 2008, the UK enacted the Consumer Protection from Unfair Trading Act, which clearly stipulates that stealth marketing is illegal. In the United States, the Federal Trade Commission (FTC) revised its guidelines in 2009 to regulate stealth marketing.
Representative examples of stealth marketing
Let’s take a look at some typical cases of stealth marketing that have been discovered so far and have caused major social problems.
Reviews of popular gourmet sites
In 2012, it was discovered that restaurants on a popular gourmet site run by a major price comparison site were using “swindlers” to improve their rankings on the site. The act of posting highly rated reviews in exchange for receiving money was carried out.
The operators of gourmet sites have strengthened their checking systems using their own systems and have taken measures to prevent stealth marketing, such as eliminating unnatural reviews, but as sites that handle restaurant reviews, It can be said that trust has declined over a period of time.
Celebrity blog post
Steal marketing at an auction service that was discovered in 2012 and is a well-known case of fraud by the operator. In an auction where a fee is charged each time a consumer makes a bid, the operator used a bot to repeatedly place automatic bids, thereby defrauding bidders of the fee.
In addition, although several celebrities did not win at this auction, they posted on their blogs with photos of themselves in possession of the items, saying things like “I was able to win the bid at a low price.” Later, it was discovered that the management had given cash to numerous celebrities as referral fees, and the company was held accountable for its social responsibility as a malicious act posing as a general consumer.
The operating company of the blog used in the advertisement has taken measures such as deleting
the account
of the blog that the celebrity in question had posted as a countermeasure against stealth marketing. It can be said that this is the incident that brought the act of stealth marketing to the public’s attention.
Twitter marketing for popular movies
In 2019, after the release of a certain movie, multiple manga artists posted content promoting the movie almost simultaneously on social media, which became a problem. All of the posts praised and gave positive reviews of the movie, causing an uproar as SNS users complained that it was an obvious advertisement.
The company initially denied the use of stealth marketing, but later announced that money had been exchanged for posting the manga on SNS. Additionally, the official website apologized for the fact that the word “PR” was omitted due to a communication error, even though it was a marketing measure.
Although it was explained that it was not an intended stealth marketing, many consumers were shocked by the suspicions, as it was a sequel to a popular movie that was considered a blockbuster.
fictional personal fan site
In an American example, Zipatoni used stealth marketing to sell Sony’s PSP. The synopsis is that Zipatoni has set up a fictitious personal fan site, playing the role of a young man who wants his parents to buy him a PSP. It is a personal fan site that says, “I don’t need anything other than PSP for Christmas,” and it is also true that the site was extremely complete.
However, because of this, a third party became suspicious, and the Who is information was checked, and as a result, it was discovered that Zipatoni, which is not a young company, was conducting stealth marketing. In the blink of an eye, other media reported the incident, and a series of incidents occurred that resulted in Sony issuing an apology. Stealth marketing masquerading as a third party is extremely dangerous, and false information should not be disseminated.
Fabrication of movie reviews
In 2001, the American company Sony Pictures Entertainment created a fictitious critic named “David Manning” to promote their films. David Manning actually received support from consumers by giving reviews that praised the actors appearing in his company’s films and the films as a whole.
However, it was later revealed that there was no such thing as a critic named David Manning, and two Sony Pictures Entertainment executives were suspended. In addition, Sony Pictures Entertainment will pay approximately 160 million yen in compensation.
It can be said that this is a case of stealth marketing that not only damages the credibility of a company due to a commotion, but also shows a glimpse of financial risks.
summary
Stem marketing is the transmission of evaluations and information about products and services disguised as advertisements and promotions, pretending to be a neutral third party.
There is nothing wrong with celebrities, influencers, etc. introducing products and services as general advertisements, but it is important to provide easy-to-understand information to consumers that makes it clear that this is not a stealth marketing campaign and is an advertising activity. You will need it.
In order to avoid conducting advertisements that may cause a loss of trust in the company, it is important for companies to correctly recognize and understand the meaning of stealth marketing and the actions it targets, and to carry out PR activities that do not cause misunderstandings among consumers.