Authored by Danish Malik, Co-founder & CEO, Boomlet Group.

In recent years, the surge of fake news has been a pressing global concern. The spread of misinformation threatens democracy, fosters societal polarisation, and even incites violence. As we step into 2023, the issue of fake news continues to evolve and persist. Reports indicate that over 40% of content shared on social media platforms is false. Oxford University research revealed that fake news is circulated 4x more frequently than content from credible sources across these platforms. Misinformation takes various forms, from low-quality clickbait articles to manipulated media like images and videos, deepfakes, and even satire.

Impact of Fake News on Brands

Fake news poses severe brand risks, damaging their reputation, competitiveness, and consumer trust. Fake news can harm businesses financially, but the more insidious consequence is the erosion of trust, leaving people uncertain about whom to rely on. Media marketers must stay vigilant, understanding various forms and sources of fake news and their impact on audiences, brands, and industries. Even established brands like Starbucks, Microsoft, PepsiCo, and New Balance have fallen prey to fake news.

Let’s look at PepsiCo’s case as an example. In the lead-up to the 2016 US presidential election, PepsiCo faced a significant blow. A false narrative circulated, claiming CEO Indra Nooyi urged Trump supporters to “Take Their Business Elsewhere,” leading to a nearly 4% drop in the company’s stock. In reality, during an interview at the New York Times Dealbook Conference, Nooyi expressed a call for unity, stating, “I think we should mourn for those of us who supported the other side.”

She emphasised the need to come together and move forward, even congratulating Trump on his victory. However, the Conservative Treehouse blog distorted her words with the sensationalist headline: “Massive Stewardship Fail – PepsiCo CEO Tells Trump Supporters to ‘Take Their Business Elsewhere’.” This fabricated quote was quickly seized upon by fake news sites, triggering calls for a boycott of all Pepsi brands with hashtags like #boycottPepsi and #Pepsiboycott.

How Brand Communicators Can Prevent Misinformation

Since the beginning of 2021, there have been over 8 million instances of misinformation online. Brand communicators have the potential to counter the negative impacts of viral misinformation by actively engaging in external conversations, establishing excellent feedback channels, and conducting research campaigns to evaluate ongoing initiatives. They can identify and address anomalies by venturing beyond their own spheres and observing audience behaviour. Regularly analysing these observations will empower them to tackle misinformation challenges surrounding their brands proactively, ultimately enhancing their communication strategies and brand image.

One more example of misinformation that rolled out on the internet was about the fast food giant McDonald’s having contended with fake news long before the Trump era. Alistair Macrow, the Chief Marketing Officer, highlights the persistent spread of misinformation. He cites the rise of clickbait articles in the online advertising race as a contributing factor. Additionally, false stories tend to circulate more swiftly than the truth. This paradigm shift holds profound implications for McDonald’s marketing approach, given that trust is paramount to its success.

With an impressive 44 consecutive quarters of growth, the company has taken strategic steps to combat misinformation. They have embraced transparency by opening operations to scrutiny, investing in TV advertising to combat misinformation, and actively engaging with YouTube influencers. They also allowed public access to their kitchens and suppliers, placing utmost transparency at the core of their marketing strategy.

Employees Can Secure Brand Image in the Havoc of Information Fidelity

Studies indicate that employees are often viewed as a trusted source of information about a brand, its products, and services. Despite only 3% of employees actively sharing content on social media about their company, these shares play a pivotal role, contributing to a substantial 30% surge in overall company engagement. Therefore, organisations and brands should harness their employees’ authentic voices. Instead of relying solely on one-way corporate social media content, employee-generated word-of-mouth is persuasive and credible social proof for most brands. Moreover, word-of-mouth shapes a brand’s image and influences buyer decisions.

TakeAways

Brands now recognise fake news as a business threat, not limited to politics. To combat it effectively in a post-truth world, they should improve advertising. Embracing independent voices, leveraging influencers, engaging employees as positive brand representatives, and prioritising relevance over disruption are key strategies to protect brand integrity.