“We’re #1” is a strong advertising claim. These claims compel consumers but also attract scrutiny from competitors and regulators. A recent decision by the BBB National Program’s National Advertising Division (NAD) shows the necessity of ensuring that these claims are supported by clear, current evidence and appropriate disclosures.
Twilio, which sells a customer data platform (CDP), advertised that it was the “#1 CDP by 2020 market share,” relying on market data from International Data Corporation (IDC). Competitor Adobe challenged the claim, arguing that it could mislead consumers because the disclosure did not account for more recent market developments and was not clearly presented in the advertising.
NAD’s Review
NAD determined that the IDC study did support Twilio’s claim, because it relied on the most recent data available at the time. However, NAD found that the disclosure explaining the claim was not sufficiently clear. One billboard prominently stated that Twilio was the “#1 CDP,” while the disclosure appeared in small text in the corner and read: “#1 CDP for worldwide market share (IDC 2020).”
NAD concluded that simply referencing “IDC 2020” was not clear enough to explain the basis of the claim. The organization recommended that Twilio clarify the disclosure in the main claim, so consumers could better understand what the statement refers to. Similarly, concerns were raised about a claim that appeared on Twilio’s website and in Google search results, and the NAD made recommendations for clearer disclosures in those contexts as well.
#1 for Advertisers
Claims of market dominance are often closely scrutinized by competitors. Advertisers and marketers must ensure that their claims are supported by research. This includes ensuring that the data supporting the claim is current and reliable, the claims reflect the data, all disclosures clearly explain the basis for the claim, and the disclosures are visible in every context in which the claim appears.
IMS Legal Strategies designs consumer surveys and research to help companies substantiate advertising claims and evaluate how consumers interpret them before those claims reach the market.
