• The Wall Street Journal, Tuesday, November 27, 2007 11:15 AM

"Social-shopping" sites such as Kaboodle, ShopStyle.com and ThisNext that let shoppers talk about what they're interested in buying and voice opinions on others choices are becoming popular as advertising vehicles for major marketers, such as Nike and American Express. But there are potential risks--such as transparency--for both the advertisers and the sites, which are still new and have yet to be fully tested.

On Kaboodle, for example, in-house editors assemble a list of items that they say are big sellers on the Web. They dub the list "hot picks." But advertisers can pay to have their products displayed on it. Marketers say there could be a backlash if shoppers believe the sites are blurring the line between content and advertising.

Kaboodle says its site is completely transparent. "We absolutely, 100% always have to keep a big, clean clarity between advertising and editorial," says CEO Manish Chandra. A note above the items discloses that a company sponsors them. Kaboodle, which was acquired by Hearst in August, drew 1.5 million unique U.S. visitors last month--up 48% from April, according to Nielsen Online.

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