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The cost of reactive content moderation: why brands need a consultancy to stay ahead

December 16, 2024 | Marketing & Operations

Imagine you’re an e-commerce business that has seen tremendous growth in traffic and new users over the past year. Everything seems to be running smoothly – orders are coming in, customers are browsing, and your brand is growing exponentially. Suddenly, a wave of problematic content surfaces on your platform – perhaps inappropriate product reviews, offensive user-generated comments, or even fraudulent listings.

It’s now too late to prevent the consequences: customers start losing trust and abandon their carts, advertisers begin to back out, and soon enough, the regulators are knocking at your door.

This is the cost of reactive content moderation. In today’s climate, content moderation can’t be an afterthought; it’s a proactive necessity that drives brand trust, user safety, and compliance. Here, we explore the risks of relying on reactive moderation, and why a trust and safety consultancy like that offered by WebPurify can be the key to staying ahead.

The cost of reactive content moderation: why brands need a consultancy to stay ahead

1. Fines that can break the bank

If your business operates in Europe, the cost of not getting moderation right can be massive. The EU’s Digital Services Act (DSA) can impose fines of up to 6% of a company’s global turnover for non-compliance. Ailís Daly, Head of Trust & Safety, EMEA at WebPurify, puts it simply: “We’re seeing an era where regulation isn’t just a threat – it’s very real. Companies that are complacent about trust and safety are getting nailed by regulators, and the fines are substantial.”

Reactive moderation isn’t enough to keep these risks at bay. Only a proactive, well-thought-out strategy can help a brand avoid these costly penalties.

2. Trust isn’t a given; it’s earned

Think about your favorite brands. Do you stick with them because of flashy advertising, or because you genuinely trust them? Trust is a valuable commodity, and it’s easily lost.

Relying on reactive moderation means waiting until harmful content has already affected your users before you take action. When users feel unsafe or exposed to inappropriate content, they’re not going to stick around. They’ll leave, and they’ll remember.

Ensuring user safety through proactive measures is critical for retaining your community and turning users into loyal advocates. Brands that take trust and safety seriously are the ones users keep coming back to.

3. Advertisers will walk away

If your platform relies on advertising revenue, the stakes are even higher. Advertisers are notoriously protective of their brand image, and they will not hesitate to abandon a platform if their ads show up alongside harmful or inappropriate content. A lack of effective moderation makes your platform a risk they’re unwilling to take.

As Ailís points out, “We’ve seen time and again how advertisers will flee from platforms that can’t guarantee a brand-safe environment. Advertisers want certainty that their messages won’t appear next to harmful, or even controversial, content that could damage their brand.

“Without proactive moderation practices in place, your advertisers will lose confidence, and that’s when they take their ad budgets elsewhere, sometimes for good. Proactive content moderation is the assurance they need to feel comfortable investing in your platform.”

You can read more about this issue in our ebook, The Unseen Side of Advertising.

Trust and safety consultancy

4. The cost of reactive moderation vs. the cost of consultants

Hiring a trust and safety consultancy might seem like an extra expense, but consider this: the cost of regulatory fines, lost users, and fleeing advertisers far outweighs the investment in expert support. Trust and safety consultancies like WebPurify’s can help you build and implement a comprehensive moderation strategy that prevents issues before they spiral out of control.

Reactive moderation means scrambling to clean up a mess after the damage has already been done. On the other hand, consultancies help you stay ahead, turning content moderation from a reactive hassle into a proactive strategy that supports your business growth.

5. Increased accountability for executives

Another critical aspect to consider is the rising personal accountability of executives for trust and safety issues. The recent case of Pavel Durov, the CEO of Telegram, is an example of how regulations are tightening around executives.

“We’re moving toward a world where executives are being held more accountable than ever before,” Ailís says. “This shift means CEOs and decision-makers can no longer afford to treat trust and safety as a checkbox to satisfy regulators. They need to see it as an essential part of their business strategy – something that protects not only their company but also their personal standing.”

6. Trust and safety as a core business value

Treating trust and safety as a mere regulatory checkbox is one of the biggest mistakes a platform can make. You shouldn’t think about content moderation as simply a means of avoiding fines or appeasing regulators. Effective content moderation helps build your community into one that feels valued and protected.

Your users want to know they’re interacting in a safe space, and advertisers want to be confident their brand image is upheld. Effective moderation adds business value by enhancing the user experience and creating a positive reputation.

When content moderation is done right, it’s a competitive differentiator that sets your brand apart.

In a world of increasing regulation and user expectations, reactive moderation just isn’t going to cut it. The costs are too high. A proactive content moderation strategy, guided by a consultancy like WebPurify’s, helps brands navigate these challenges effectively. It’s time to invest in trust and safety, not just as a regulatory need but as a fundamental business value.

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