Home Gaming On the YouTube moneyhat scandal…

On the YouTube moneyhat scandal…

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Moneyhat

Since the dawn of games journalism, and especially since the advent of the internet, publications have been accused of pocketing cash from the people who make, sell or market games for favourable coverage. “Moneyhats,” you’ll often see plastered in forums or comments when a site says nice things about a product or game that the internet dissenter disagrees with. It’s for that reason that many have turned to YouTubers for their opinions. YouTubers are gamers like us. They’re honest. They’d never take money to shill a product. Nope. Never.

This week, news emerged that Machinima offered its YouTube partners extra cash if they said nice things about the Xbox One. What’s shocking is the number of partners who accepted the agreement to make videos about the Xbox One with a positive spin. Here’s a list gathered by NeoGaffer Aquamarine, who did all the hard work so I didn’t have to.

More than 84 YouTubers with a collective reach of nearly 12 million subscribers accepted the agreement to evangelise the Xbox One. Andaccording to Microsoft and Machinima, it’s a pretty “typical” arrangement.

“This partnership between Machinima and Microsoft was a typical marketing partnership to promote Xbox One in December. The Xbox team does not review any specific content or provide feedback on content,” the companies said in a statement. 

Now, information has come out that EA’s been paying YouTubers for their opinions as well. Electronic Arts apparently has whole program which pays YouTube fans to promote its games, like Battlefield 4, The Sims and Need for Speed. It’s called Ronku, and EA’s confirmed its existence.

“Through EA’s Ronku program, some fans are compensated for the YouTube videos they create and share about our games,” a company spokesman told The Verge. “The program requires that participants comply with FTC guidelines and identify when content is sponsored. User-generated videos are a valuable and unique aspect of how gamers share their experiences playing the games they love, and one that EA supports.”

Here’s an example of one of the Ronku assignments, which netted EA over 20 million YouTube views.

K524Kmz

The problem isn’t that EA and Microsoft (and quite probably, other publishers) have stumbled on a new way to advertise their products. The problem is one of disclosure. How do you know that the YouTube personality whose opinions you hang on is expressing genuine opinions, or is just doing it for the cash? You don’t – especially when they’re contractually obliged to keep endorsements a secret

Some of the more prolific YouTubers have spoken out against the whole thing, implying that YouTubers are “more honest” than the press, which is quite honestly nonsense.

 

The incredibly funny, frankly brilliant Matt Lees, former video chap at Videogamer.com summed it up thusly.

 

Boogie2988, who you might know as the fellow behind the “Francis” persona, explained a bit about how YouTube and marketing work. Marketing is a reality; whether it’s a big YouTuber, a site or a magazine.

It’s the sort of thing we’ve dealt with – and continue to deal with. We’ve never been paid for our opinion, nor have we been paid to withhold our opinion. Yes, we have advertising for games plastered all over the site – it’s a reality of the business, and it’s how we get paid. We need to keep the server going, and we like to eat food on occasion. That advertising, however, never sways opinion, and I believe this to be true for pretty much most sites and magazines. When Alien: Colonial Marines (as an example) was reviewed, we just happened to have an unfortunate advert for the game right next to the review.

We’ve also, more recently, been called out putting our affiliate links in to posts, so we earn money if you buy from clicks within the site. This is absolutely true; however it’s never a case of “Retailer X has asked us to promote these games in exchange for money, so get to it!” It is always, always a case of “Hey! Have you seen that Retailer X has these things people might want on special? Let’s post that!” And then some time later, one of us will remember that hey, we may as well try and earn some cash off of that, and put the links in (which is a tiresome, tedious process – but it gets us lunch. Sometimes.). When we are being paid to put up content, it’s clearly marked, as you can see here. 

The point I’m trying to make isn’t “trust us, we’re the paragon of integrity” or anything as iffy as that. Nor am I trying to instil an inherent distrust of YouTubers, or infer that the press is more honest and reliable. It’s not that marketing is evil, or Microsoft or EA should be ashamed of trying to get as much cheap marketing as they can. It’s all about disclosure; if you’re being paid to give a pre-determined opinion to your audience, let them know.

They deserve that at the very least.

Last Updated: January 22, 2014

60 Comments

  1. Skyblue

    January 22, 2014 at 11:39

    I think popular “Youtuber’s” make far more than your average gaming site and have a fraction of the overhead along with a superior hit rate from users. No surprise that companies would start throwing advertising money in their direction.

    EDIT:This doesn’t bother me nearly as much as my kids watching Pewdiepie scream like a girl every 10 seconds.

    Reply

  2. Sir Rants A Lot Llew. Jelly!!!

    January 22, 2014 at 11:42

    I have nothing against this kind of marketing. However there needs to be some indication that it is just that. Marketing. When it is hidden then it is wrong. I want to know when something is personal opinion and paid for opinion because each will have a different sway on me.

    So to all those youtubers: Stop accepting shady deals where you have to hide the fact that you are being paid to say something nice. It will only hurt your reputation if it comes out

    Reply

    • Alien Emperor Trevor

      January 22, 2014 at 11:44

      And it WILL come out eventually, and then everything that person has done previously becomes suspect as well.

      Reply

      • Sir Rants A Lot Llew. Jelly!!!

        January 22, 2014 at 11:55

        Exactly

        Reply

    • JustAnotherGamer

      January 22, 2014 at 12:46

      It’s wrong when a company pays a blogger and then tells a blogger not to disclose that their content is no longer commentary but actually a paid advert. That’s actually illegal. It’s not just morally or ethically wrong, it’s also legally wrong.

      Reply

      • Sir Rants A Lot Llew. Jelly!!!

        January 22, 2014 at 13:37

        I was wondering about that

        Reply

  3. Alien Emperor Trevor

    January 22, 2014 at 11:43

    Well said Geoff. It’s about clearly disclosing that you’re getting paid to promote a point of view. It’s only when people hide it that it becomes a problem. I have no problem with marketing or ads in general.

    Reply

  4. Spathi

    January 22, 2014 at 11:44

    Nicely said.

    Reply

  5. Kromas

    January 22, 2014 at 11:54

    Not news but rather a confirmation of what most people already know.I mean seriously MS and EA.Seriously. Come on.

    Reply

  6. Unavengedavo

    January 22, 2014 at 11:55

    • Gavin Mannion

      January 22, 2014 at 11:55

      ? That wasn’t a paid post that was a question that lead to us allowign paid posts,.

      Reply

      • Unavengedavo

        January 22, 2014 at 11:59

        I know! I was actually applauding you because you asked us first before just jumping into it. And you stated that you would clearly indicate that it was an advitorial

        Reply

        • Exalted Overlord Geoffrey Tim

          January 22, 2014 at 12:00

          Ok, gotcha. 😛

          Reply

          • Unavengedavo

            January 22, 2014 at 12:06

            To be honest. If I felt you guys were full of shit then I wouldn’t have been reading this site let alone take the time to torment you in the comments 😛

          • Brady miaau

            January 22, 2014 at 15:10

            Yeah, what he said

    • Exalted Overlord Geoffrey Tim

      January 22, 2014 at 11:58

      I don’t follow. That wasn’t paid advertorial.
      “In related news, this post isn’t an advertorial and is actually exactly what happened to me this morning. kalahari and SteelSeries have absolutely no idea this post is going up but I need to ask you guys and girls something that has been on my mind for a while…”

      Reply

    • Johnny

      January 22, 2014 at 15:57

      There all guilty of it because it’s not new and they ALL DO IT. I mean really kids grow up Sony pays people to and so does Nintendo but I think they should get their money back. But there is nothing worse than a hypocrite.

      Reply

  7. General JJ PanGirl

    January 22, 2014 at 11:58

    This YouTube copyright thing is such a damn stupid system. They have no idea what they’re doing. It is, however, showing which companies are the most money hungry and which ones not to support anymore.

    Reply

  8. Umar Break Dancing Cyborg

    January 22, 2014 at 12:03

    Good article man! Hope you guys get to eat today

    Reply

  9. RinceThis2014

    January 22, 2014 at 12:09

    So what about Darryn and his youtube ads/eatingchillies? Are you telling me he did those of his own volition? That he sat, fully clothed in a shower spilling his heart out when Borderlands 2 was delayed, spat our Spiderman webbing after eating a chilli, and had at his old controller with an axe for FUN!? He wasn’t PAID?! My gods man, what is wrong with him!?

    Reply

    • Alien Emperor Trevor

      January 22, 2014 at 12:14

      Bringing joy to others is a reward more valuable than money.

      Reply

      • RinceThis2014

        January 22, 2014 at 12:16

        What’s your excuse then? 🙂

        Reply

        • Alien Emperor Trevor

          January 22, 2014 at 12:40

          Show me the money!

          Reply

    • Gavin Mannion

      January 22, 2014 at 12:17

      there is so much wrong with Darryn… so very much

      Reply

  10. fred

    January 22, 2014 at 12:11

    Talk about the good while covering up the bad , integrity and trust for sale.

    Reply

  11. Rags

    January 22, 2014 at 12:18

    Good post. I think I was one that called out the affiliate sales posts. I don’t have any problem with it unless it is ‘hidden/disguised’ a regular post. I want to support you guys so call it what it is. Being sneaky cost credibility points. Being honest earns credibility points. 😛

    “Support our work.” is infinite times better than “Buy these awesome games now!”

    Reply

  12. RinceThis2014

    January 22, 2014 at 12:31

    And this is only going to get worse as people try posting stuff from their social media options on their PS4 and Xbox One.

    Reply

  13. JustAnotherGamer

    January 22, 2014 at 12:45

    In before the usual SonyToo™ from the xbots.

    What I like is how MIcrosoft threw Machinima under the bus, and Machinima just takes it like a man. Now thats the loyalty only money can buy.

    To Microsoft: Just because you can get away with moneyhatting on twitter (brand managers and steatlh astroturfers) and through sites like polygon doesn’t mean you’ll get away with it with the rest of us.

    Reply

    • Johnny

      January 22, 2014 at 15:51

      Hahaha hahaha yeah Microsoft and the rest of the world is out to get your favorite gaming console. Hmmmmm I wonder could you be one of those paid bloggers Sony uses.

      Reply

      • JustAnotherGamer

        January 22, 2014 at 16:05

        I doubt it, I’m a PC gamer brah!

        Reply

  14. Brian Murphy

    January 22, 2014 at 13:17

    Yeah, paying for positivity is an industry norm, however, doing so under a shroud of secrecy is where things start entering the realm of questionable legality. I wonder how this will be handled in the US for FTC violations.

    Reply

    • JustAnotherGamer

      January 22, 2014 at 13:24

      Yes, there’s nothing wrong with paid promotions but if it’s not disclosed, or at least if your audience is kept in the dark about it, it’s illegal. That’s why the FTC exists because of the payola scandals over the 50s.

      All of this just reminds me of how much EA and Microsoft suck. They’re really the worst thing to have happened to gaming.

      Reply

      • Exalted Overlord Geoffrey Tim

        January 22, 2014 at 13:40

        It really is..it’s Payola all over again. YouTube is the new Radio.

        Reply

      • Brian Murphy

        January 22, 2014 at 15:29

        You know, maybe it’s a bit naive on my part, but I would think by now that Microsoft would be stepping lightly in regards to activities like this. I mean, this can’t have helped their hardware sales (to say nothing of their image), and while shitting on Microsoft is definitely the ‘cool’ thing to do, it’s things like this that really show you why.

        Although, I was shitting on Microsoft a long time before this happened, and will continue to do so until they and the rest of the industry knobs make local server options an industry standard (AGAIN!).

        Reply

        • JustAnotherGamer

          January 22, 2014 at 16:07

          Let’s be honest, this won’t affect them at all. They got about 1.2 million views through all those dumb youtubers (even paid positive publicity is positive), and much like with the payola scandal, the only ones who are going to get hurt will be the little guy (youtubers and maybe Machinima).

          Reply

          • Brian Murphy

            January 22, 2014 at 16:09

            It will hurt or at least, not help their image any further. That’s really what I meant. I’m simply astonished at how much of a 180 Microsoft has taken in the PR department.

          • JustAnotherGamer

            January 22, 2014 at 16:13

            They’re struggling with PR on the internet, but with all the doritos and mountain dew deals, it’s constantly in the face of consumers so in that sense I don’t think the scandals affect them that much. They’ve sold 3 million xbones so far, and that’s on the back of a DRm scandal, OS problems, the resolution issues…

            What it tells me is that for most gamers, it really doesn’t matter. It’s the dudebro effect. All he or she understands is “Call of Duty derp Titanfall”

          • Brian Murphy

            January 22, 2014 at 16:27

            This is definitely true, however, it’s still remarkable how unfavorable they’ve become online. It’ll be interesting to see if the dudebro effect carries to the PS4, given it’s popularity.

            Have seen a number of converts in the G+ community, so either they’re following their friends, or simply trying a new platform.

  15. Jonah Cash

    January 22, 2014 at 13:41

    Now at least I know why I was the only idiot who absolutely hated Fifa 14 on the PS3!!! They might want to pay me to shut up next time though!!! Still the worst freaking sports game experience of my life!!

    Reply

  16. Johnny

    January 22, 2014 at 15:34

    It’s called advertising you emotional douchebags.

    Reply

    • JustAnotherGamer

      January 22, 2014 at 16:09

      No, it’s called payoollaaaaa, and it’s illegal, brah!

      Reply

      • Johnny

        January 22, 2014 at 16:15

        No its called advertising and there’s nothing illegal about it. Just do us all a favor and stop with the fake outrage. By the way I kinda wonder how many user names do you have? What professional Blogger company do you work for?

        Reply

        • JustAnotherGamer

          January 22, 2014 at 16:18

          LMAO No brah! It’s actually illegal.

          You can’t tell partners not to disclose that you’ve paid them for advertising (the very definition of payola). If they didn’t have that one specific clause, it would have been fine. If tubers had a “sponsored by” label, it wouldn’t be a big deal. But they don’t, so you think you’re getting honest opinion, instead you’re getting a stealth advert.

          Now go educated yourself brah!

          http://www.asa.org.uk/News-resources/Media-Centre/2013/Blurring-advertising-and-blogs.aspx

          Reply

          • Johnny

            January 22, 2014 at 16:40

            Please enlighten us how do you get paid do you get paid per word how does that work or is it by story or is it a set price. How many these “individuals” that are on here commenting are you because you all sound the same, same pre approved talking points and repeated argument. So as I said before just do us a favor and stop with the fake outrage and go away.

          • JustAnotherGamer

            January 22, 2014 at 16:44

            Damn brah so …like… I’m Anonymous now? Hahahaha! Stay classy Johnny and don’t be so obvious in your shilling. Seriously brah, you reek of astroturf.

          • Johnny

            January 22, 2014 at 16:50

            Attention everyone this guy is a paid blogger he says he’s a PC gamer and is trolling one article after the other about this very same topic. I made a comment on a different site cinema blend about the same topic yesterday about how Sony pays bloggers to fill comment section with negative comments about Microsoft and lo and behold after calling a paid Blogger on here he goes to cinema blend and tries to start rolling that site as well. lazygamer needs to do a story about this very thing.

          • Brian Murphy

            January 22, 2014 at 17:01

            Johnny,

            From a standpoint of US law, he’s actually correct. It’s a violation of the FTC’s guidelines on endorsements and testomonials (16 CFR Part 255, subsection 255.5 explains the example scenarios and responsibilities of parties being paid for endorsements).

            http://www.ftc.gov/sites/default/files/attachments/press-releases/ftc-publishes-final-guides-governing-endorsements-testimonials/091005revisedendorsementguides.pdf

            And whether he’s a paid blogger or not, doesn’t change the fact that in some countries, this activity is illegal. Remember, Microsoft is an American company based in Redmond, California, so they’d be held to FTC standards.

          • JustAnotherGamer

            January 22, 2014 at 17:07

  17. Lacerz

    January 22, 2014 at 16:38

    Microsoft and EA just adding to their Evil Empire legacy. I’m curious if the FTC will look into this. It would seem to run afoul of 15 CFR sec. 255.5

    Reply

  18. Pieter Kruger

    January 22, 2014 at 16:46

    AGAIN, this has been going on and will continue to go on till end of time!! Nothing new or even newsworthy here! Sony’s biggest expense last year was for advertising………

    Reply

    • JustAnotherGamer

      January 22, 2014 at 17:15

      So you’re going with the SonyToo™ xbot defence? So if Sony does it too… that makes it automatically ok? >_>

      Brah…. it doesn’t matter who it is. It can be Apple, Sony, Samsung or McDonalds. This is unethical and wrong. We can’t have a system where positive opinion can be bought or advertisements or commercials are disguised as unbiased and honest opinion. This isn’t about the right to advertise. This isn’t the same as product placement. It’s also not the same as celebrity endorsements. Don’t confuse the matter.

      Reply

      • Brian Murphy

        January 22, 2014 at 17:24

        Yeah, any company partaking in this activity should be held accountable. Full disclosure/transparency is the only way it should be allowed (and the laws are designed that way for a reason).

        Reply

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