Ads on social networks can drive sales

Such are the findings of a recent survey from Razorfish named "FEED: The Razorfish Consumer Experience Report", involving over 1,000 "connected consumers", defined as those with broadband access who use a networking site such as Facebook or MySpace and who spent $200 or more online in the last 12 months.

The survey found that over three-quarters of respondents didn't mind seeing ads when using their social network of choice. While that statement in itself doesn't necessarily give an indication of the effectiveness of ads on social networks, the survey did discover that 40% of respondents had been prompted by an ad on a social network to make a purchase.

It should be remembered that many Internet users, whether on social networks or online video websites, are now becoming accustomed to seeing advertising and view it as a pay-off for access to free content or having social network facilities.

Thankfully, the report does point out that the success of advertising on social networks is largely dependent on the execution and creativity that drives it. Advertisers need to develop techniques and tools to engage and entertain consumers using video, widgets, games or the creation of fan pages, absorbing the marketing message into a "social experience".

"Connected consumers embrace social media, are actively building and refining their own trusted personal networks and are rapidly dabbling with emerging communication offerings like Twitter," said Garrick Schmitt, Razorfish Group VP of Experience Planning and FEED editor.

"We find that consumers are more open to advertising as part of their everyday experience than commonly assumed."

The report is followed up by a selection of relevant, entertaining and interesting articles such as "Mad Widgetry", "Advertising as a Service" and "Twitterific" written by industry experts.

Tags: Facebook, MySpace, online advertising, razorfish, social experience, social media, social network, twitter, widgets