WikiLeaks proxy war takes its toll on brands’ integrity

December 9, 2010

It hasn’t taken long for the proxy cyber war being waged between WikiLeaks, the whistleblowing site, and the US state department to spill over into the world of brands.

Yesterday, Operation Payback – manned by a bunch of freelance cyber hackers who have taken up the cudgels on WikiLeaks’ behalf – managed to shut down the website operations of Mastercard: not only http://www.mastercard.com but some of its SecureCode operations as well. It was a serious piece of hacking that felled the international credit card operator at a highly vulnerable time – on one of the key shopping days before Christmas.

Other household names are likely to experience similar trauma. Visa has fought off a guerilla attack, but more may follow. Amazon is in the firing line. Paypal is already experiencing grief. And Twitter will probably follow.

Their offence? According to Anonymous, the nom de guerre of the aforementioned cyber warriors, they have stepped out of commerce and into politics by colluding with a politically inspired campaign to close down the WikiLeaks site and must be prepared to take the consequences. In the rougher language of the hackers: “We will fire at anything, or anyone, that tries to censor WikiLeaks, including multi-billion dollar companies such as PayPal…Twitter, you’re next for censoring WikiLeaks discussion. The major shitstorm has begun.” Twitter’s offence, which it denies, is to have pushed the WikiLeaks affair down the “trending” algorithm, effectively denying it the oxygen of publicity.

Whether these cyber attacks will in themselves do lasting damage is to be doubted. Far more corrosive is the bad publicity for the brands involved. They are seen to have taken sides, and acted not on behalf of the consumer but on behalf of the US state department. Under pressure, they are forced to admit that they have suspended operations with WikiLeaks because these operations are now deemed illegal. By whom? By the US state department, invoking not the jurisdiction of international law, but its own. In other words, the brands involved are yielding to a form of blackmail, for fear of reprisals in their single biggest market.

It is no surprise to find the US administration acting vindictively. No state likes to lose face in public – and WikiLeaks founder Julian Assange has certainly made a mockery of the USA’s much vaunted cyber-protection systems (or at least, the Pentagon version of them). Moreover, we’ve seen this sort of behaviour in the past. Philip Agee, the renegade CIA agent, was hounded for many years by a vengeful state department. More recently the US has pursued with a vigour bordering on persecution an extradition order against UK citizen Gary McKinnon, who is accused of hacking into Pentagon secrets (why is it always Pentagon systems that are so insecure?). UFO-fancier McKinnon faces up to 70 years imprisonment if the order eventually succeeds.

In the case of brands, however, the damage is subtler and collateral. For all their pretensions to globalism, they have found themselves manipulated by a national government – which just happens to be the most powerful in the world. If all this had taken place in China – as it did when the Chinese state began to shut down Google’s operations – the outrage would be international. But when the USA does the same thing, reaction is muted. The implied impediment to free e-trade is taking time to sink in.

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Bavaria beats up Bud in World Cup beer putsch

June 20, 2010

Despite its transcendent dullness to date, this year’s World Cup has managed to produce a few results of startling clarity, mostly of the negative kind. There’s England’s lacklustre performance, of course, and ITV’s stunning series of own-goals. But it’s the aggregate performance of the official sponsors I’m going to address here – and their need to get real; especially with FIFA, the organising body behind the tournament.

Exhibit One, a piece of market research carried out by Lightspeed, on behalf of our rival publication. Conducted at the time of the England v US match, it showed that only 8% of respondents thought sponsorship had a positive effect on their view of the brands involved. That, mind you, depended on whether they could identify those brands in the first place. Many could not. Quite a few, for example, reckoned Mastercard was a “partner” (30%), when it is not; only 37% gave the correct answer: Visa. A further 29% were highly impressed with Nike’s performance as a sponsor – except that, notoriously, it is not. The answer should be Adidas. Only Coca-Cola hit the button: a high correlation between correct identification and strong awareness; 65% of respondents got it right.

There is, by the way, nothing anomalous or even unusual in these results. Marketing Week has conducted similar surveys over the years, and come up with pretty similar conclusions. Coke scores well, and all the other sponsors are way down the league table; Nike scores too, but it’s offside.

Exhibit Two, the beer brand Bavaria. If you really want to make a name for yourself, don’t bother with official sponsorship (which would be difficult to afford anyway). Try causing a stir by breaking the silly FIFA-inspired anti-ambush laws and watch your brand awareness ratings shoot up.

Personally, I find the whole Bavaria brand proposition muddled. Orange lederhosen? Is it a German brand trying to cash in on a Dutch pedigree, or a Dutch brand trying to associate itself with the annual beerfest in Munich? In fact, the latter. There’s no denying the value of its stunt marketing, however. Those 36 Dutch female fans dressed in Orange miniskirts, whose presence cost ITV’s Robbie Earle his job, are likely to remain on our minds for years to come. More practically, bavaria.com –  whose web traffic was previously undetectable – has been translated into the fifth most visited beer website in the UK. And, according to Bavaria’s UK marketing manager, there has been explosive interest on Twitter and other social media.

Just a stunt whose effects will quickly fade away, you say? I disagree. Thanks to FIFA, Bavaria can now put into play a long-term brand strategy based around “Operation Martyr”.

Handily, the great clunking fist of FIFA has just landed a civil action on the brewer, guaranteeing it the oxygen of publicity for a long time to come. Better still – if not for Ms Barbara Castelein and Ms Minte Niewpoort – is the arrest of the two “ringleaders”, and the preferring of criminal charges against them by the South African police. A  show trial, followed by a custodial sentence could not be better calculated to vilify FIFA and curry favour for the beleaguered beer brand. And what about the subsequent “Free the Bavaria Babes” campaign? Plenty of potential there, I think.  It’s going to make the official sponsors, particularly Budweiser, appear rather stupid (those few we can remember, that is).

So why do the official sponsors bother? Good question, to which there is no convincing answer. We know why Coke does it. It has a long and consistent association with sport that makes the other sponsors look like dilettantes. As for the rest, who knows? Collective delusion? Brand vanity?


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