Popular crowdfunding site Kickstarter just shut down a fake campaign for beefy jerky.
Over $120,000 was raised before Kickstarter froze the funds.
The “company responsible” — Magnus Fun Inc. — has since deleted its account, but it managed to pull the wool over the eyes of 3,300 supporters.
The Kickstarter promised the world’s first “100% Japanese Beer Fed Beef Jerky.”
CNN Money reports that policing the large amount of Kickstarter campaigns is an overwhelming task, and the crowdfunding site turns to its users to raise red flags. If there’s enough evidence of foul play, the site will quickly shut down funding — hopefully before the money is deposited into the company’s bank accounts.
The most obvious red flag was the Kickstarter campaign’s lack of information on its founders.
Pitch videos often feature a company’s CEO or founder excitedly talking about how their idea deserves your money — Kobe Red’s beef jerky video doesn’t feature a single face.
A documentary crew vital to the take-down investigated Kobe Red’s campaign, pointing out suspicious comments praising the beef jerky, in their film “Kickstarted.”
1. Why Cross-Screen Marketing Will Be A Game-Changer For The Mobile Industry [REPORT]: The question ad buyers have is whether advertising across screens can really help drive forward an overall campaign goal better than TV-only or traditional online campaigns.
In other words, is it worth the trouble? A growing number of mobile ad industry companies are arguing that a cross-screen approach integrating mobile is more effective.
As recently as late 2010, mobile commerce was only 3% of e-commerce. By the end of last year’s holiday shopping season, that number had risen to 11%, according to comScore. That’s approximately $18.6 billion in consumer spending – and that doesn’t even include travel-related purchases, which comScore counts separately.
New mobile merchandising trends — merchandising being the art of selling people products they didn’t know they wanted — like mobile catalogs and coupons are helping to drive this explosion.
Thanks in part to this new ecosystem of retail and shopping apps, mobile-generated retail spend could rise to 15% of retail e-commerce by the end of this year.
In a new report from BI Intelligence, we examine the main reasons why mobile commerce is exploding, dig deeper into the numbers underpinning the explosive growth, and analyze the new mobile merchandising trends — like mobile catalogs and coupons – that are contributing to this growth.
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Here’s a brief overview of why retailers and brands are offering mobile coupons:
- Driving digital revenue: Successful coupon campaigns can help e-retailers acquire customers and drive online sales. By 2014 the number of mobile coupon users is expected to increase to 53.2 million a year. At roughly 10%, the redemption rate of mobile coupons crushes that of print coupons, which hovers around 1%.
- Increasing offline sales and foot traffic to physical stores: Effective coupon strategies can lure more consumers into bricks-and-mortar locations. Mobile coupons are also proving to be a path into mobile for large consumer packaged goods brands that have previously shunned the medium.
- Gathering data: Because they are received on phones but often redeemed offline, coupons are a perfect medium for acquiring consumer data. It is a great way for them to collect data on offline purchases and close the mobile-to-offline purchase loop. In a world where the linking of offline and online consumer behavior is still a daunting challenge, that’s a valuable resource.
- Building relationships: Coupons are essentially just another channel through which to communicate with consumers. It’s useful to think of coupons less as a discounting vehicle, and more a piece of content with an offer appended. If coupons are done right, they will weave a customer and a retailer or brand more tightly together.
- Examines the three main reasons why mobile commerce is exploding
- Digs deeper i! nto the numbers underpinning the explosive growth
- Analyzes new mobile merchandising trends — merchandising being the art of selling people products they didn’t know they wanted — like mobile catalogs and coupons – that are proving to be successful in driving mobile business