This is marketing research on Social Networking and can include information on the background, usage and preferences of social networking and is related to other topics such as Web, Internet and community.

Online social networking: a potential marketing tool

The popularity of online social networking presents both challenges and opportunities to marketers.

Social media provide consumers with opportunities to enhance existing relationships and create new ones. Interaction is a key factor in a network's success, as shown by the success of sites, such as MySpace and Facebook, which encourage user-generated content. While the trend is driven by the younger age groups, many older generations are also being drawn to social media.

Datamonitor research reveals that the UK has the highest membership to social networking sites in Europe and this is forecast to almost triple by 2012 to 27 million. UK consumers have been quick to embrace the new technology, and many social networks are only available in the English language when starting up.

Several important factors are behind the very strong growth seen in online social networking (OSN) memberships. The convenience of being able to socialize without leaving the home has proven appealing to consumers, many of whom are beginning to spend more time using the internet than viewing traditional media such as television. Many consumers also enjoy the expressive freedom given to them by social networking sites, and user-generated content is crucial to the success of these networks.

Analysts believe that these sites, where consumers are creating and joining existing social communities, if harnessed correctly, can be an important marketing tool. The wealth of information stored on online social networks provides many potential benefits for marketers. This potential has been recognized for a while, but many companies remain unsure regarding the best way to approach this relatively new media. As a result, the success of campaigns through social media has so far been mixed.

If used correctly, social media can be used to create a more personal connection with consumers and effectively promote products. The potential also exists to generate viral word of mouth recommendations - a device which is among the most trusted to the consumer.

Related research

• Online Social Networking

• The Future of Social Networks (Review Report)