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Marketers Create Branded Social Networking Sites To Attract Youth

Marketers have discovered the power of Internet social networks and are beginning to develop their own versions of sites as a way to spread the word about their brands, especially to young consumers who are particularly attracted to the sites. Major marketers who have joined the trend include General Motors Corp., Coca-Cola Co., Nike, Kohl's, USA Network, and Kodak, among others. All of them have created some form of networking Web site where users can leave postings about themselves and the brands--and leave e-mail addresses companies can use for communications. "Social-networking places are megatrends that are cutting across online everywhere," says Dawn Winchester, executive vice president of client services for New York digital ad agency R/GA. "They are at the heart of where people come together around their passions. It makes sense for the right type of brands to be engaged in that type of communication." The idea is trendy and has marketing potential, but it's not without risk. For one thing, marketers must monitor sites closely lest they find their brands associated with lewd images or profanity. But it's difficult to control what people say about a brand, as GM's Chevrolet division recently discovered on its make-your-own ad site for its new Tahoe SUV. A number of visitors created ads criticizing the car's fuel use and circulated them on the Internet.

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