Social networks have, without a doubt, recently gained a great deal of momentum within the online media landscape. According to a recent study by eMarketer, approximately 54% of marketing professionals feel that social media is increasingly important, and 14% feel that it is critical for success. Depending on the product, marketing objectives, and which form of social media, both stances are valid. There are definite advantages and disadvantages to using advertising and user targeting on social networks.

The “Ups”

Now more than ever, engagement and relevance are vital to online marketing, since consumers receive thousands of marketing messages each day (most of which are not interactive). This is one reason why social networks offer targeted media placement throughout their profile pages. In particular, Facebook, whose site traffic has grown by nearly 96% from January 2009 – December 2009*, offers profile targeting, which allows advertisers to serve ads to users specifically based on their self-reported profile information (e.g., age, location or interests).

For example, if you list in your Facebook profile that your favorite TV show is The Office, you may see a text/image ad on your profile page from BustedTees.com that promotes “The Office T-Shirts.”  But the experience doesn’t have to end there. You may see an option to select whether you “like” the ad. You may see another option to “become a fan” of the BustedTees.com Facebook page. Some ads even have interactive polls, quizzes and questions that invite users to pay more attention and spend more time with the brand.

Social media is all about interaction and two-way communication; using social network advertising is often a great way to fulfill this concept. Users are interacting with their friends, families and coworkers by using social media, so why not invite them to interact with your brand as well?

The “Downs”

The fact that social networks are considered “personal space” to users could be a blessing or a curse for marketers. For users who view their social media space as a private, safe haven (expected to be free of marketing messages), then the latter is more likely.

If your message just doesn’t connect with users, then they may find it intrusive and/or annoying and proceed to simply block it out. This is why social marketing initiatives should be carefully examined upfront. Do you have the type of brand that can fit into a social media environment and truly engage users (and not offend them)?  Do you have a compelling message, question or offer to share?  Does your ad have the right tone for the audience you are trying to reach? These are the questions that should be asked before launching into social media space.

In addition, tactics such as profile targeting aren’t always a perfect fit. For example, just because a user in Chicago lists in his or her profile that he or she likes to travel, that doesn’t necessarily mean that a San Diego hotel should encourage that user to travel to San Diego. Maybe they are only interested in international travel and wouldn’t consider a San Diego trip. We just don’t have that level of detail. Again, this form of media doesn’t always work for every brand.

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We evaluate each individual opportunity with which we are presented before determining whether social network advertising makes sense. Contact us to learn more about how we can help your brand.

*Source:  comScore MediaMetrix, January 2010