• by Christina Goodman , January 17, 2008

New research based on Dynamic Logic's AdReaction 2007 study, which measures consumer perceptions of various forms of advertising, suggests that social networking websites present a unique platform where brands can connect with consumers.

While it is no surprise that most people, if asked, will say they prefer less or no advertising to more, there seems to be a certain degree of optimism about ads on social networking sites, according to this recent survey, yet not without special considerations. User outcry against Facebook's recently announced Beacon advertising platform due to privacy concerns suggests that consumers may be open to ads on social networking sites, but not at the risk of an increased loss of privacy.

When asked how people feel about seeing advertising on social networking sites, like MySpace, Facebook or LinkedIn, 71% of people who have visited these types of sites said that they didn't necessarily "enjoy seeing the ads on social networking sites," but that "the ads did not bother them."

Several themes emerged when we probed people who liked or disliked the social networking sites' ads. Those who enjoyed seeing ads said it was because they found the ads to be "relevant," "entertaining and colorful," "keeping [them] in the know," and were "informative." "They are creative and build upon the community atmosphere," said one person.

On the flip side, reasons why people dislike the ads on social networking sites are not so different from why people might say they don't like TV or radio ads or ads on other media platforms. They found the ads to be intrusive and annoying, and the number of ads seemed to be off-putting to some. "It's my choice," answered one respondent. "I'm in control and I'll leave quickly if the ads annoy me." That certainly holds true with the themes emerging in all media. People don't want to be interrupted, particularly in an environment like social networking sites where they go to connect with and talk to friends.

There is an opportunity for brands and social networking sites to engage in a dialogue with consumers, where the brand and message is relevant and does not interrupt the conversation and community spirit of the sites. If advertisers want to take advantage of this opportunity, it is imperative that they view social networking sites as a place where dialogue between friends is hosted, and understand the difference from other web sites. Advertisers will need to be extra cautious not to interrupt the flow of dialogue and find the optimal moment when they can deliver their message without intruding.

According to George Pappachen, Director of Privacy & Public Policy for Safecount, a newly formed digital survey recruitment and data collection company dedicated to improving transparency for consumers, publishers and researchers, "The social site audience is vocal about their likes and even more so, their dislikes, so advertisers need to be thinking about permission-based engagement with this audience. A perceived violation of trust, whether in the use of certain types of consumer data or in the ad execution model, carries high risk for brands and social sites alike." His words of advice to brands: "Proceed with a bit of caution and understand the audience."

While there are certain risks in all types of advertising, the door seems to be open for advertisers to tap into the huge reach of social networking sites. Now comes the challenge of finding the balance.

Goodman is Director of Global Marketing & Business Development in the London office of Dynamic Logic - A Millward Brown Company. She has been involved in the IAB research Council in both the US and the UK. Previously she worked in marketing research at The Wall Street Journal and started out working in politics in Washington, DC.