Social networks, or virtual communities, are designed to help individuals with similar interests meet, socialize, and exchange information. Experts estimate there are at least 200 social networking sites operating today. The most popular are MySpace and Facebook, but there are others that target specific communities. Classmates.com, for example, connects graduates of a particular school, while Eons.com specializes in consumers over age 50. Social networks dedicated to specific cultures and languages have also emerged. Most of these sites offer a variety of ways for users to interact, such as through email, chat rooms, forums, file sharing, video, and blogging.

From an advertising standpoint, social networks offer several ways to reach a wide audience. (Fact: MySpace now registers more traffic than Google.) The most basic is the banner ad, which can be bought directly from the site or via an advertising network. Another popular ad technique is the large-scale profile page, in which the brand essentially becomes a “member” of the social network, with its own space and the ability to connect with “friends” and distribute material.

The popularity of social networks is growing so rapidly that the dos and don’ts of the advertising space are ever evolving. It was once assumed that social networks were the domain of technologically inclined consumers, such as college students, young professionals, even tweens. But as the industry expands, the user base has become more demographically diverse. What’s more, marketers are realizing that all brands are talked about online, not just those that target a cool, hip crowd. That has made social networks an option for almost any brand, provided its target demographic has discovered the space as a strategic communication tool.

The cost for a social network ad program runs the gamut. You can do it yourself for a minimal investment by joining the free social networks and creating your own content. Or you can hire professionals to craft, launch, and measure a social network campaign for you. Examples of success stories in both investment categories abound.

Case in Point
When AutoExtra.com, an online used car marketplace, wanted to boost brand equity among consumers ages 18 to 24, it naturally turned to social networking. The firm contracted with an Internet marketing consultancy, Definition 6, which deployed a combination of social network advertising tactics to help AutoExtra.com stand out in a crowded online marketplace. The first was the purchase of online banner ads on YouTube and Facebook, sites popular with AutoExtra.com’s key demographic groups. Next, Definition 6 created a holistic brand presence for AutoExtra.com in the virtual community space. Among the tactics it employed:

• A “Junk in Your Trunk” sweepstakes on MySpace. Users who added AutoExtra.com as a social network “friend” could enter the sweepstakes by sending in pictures of the stuff stored in their car trunks. Prizes included a Wii, a video camera, and an iPod.
• Downloadable music and wallpaper that users could enjoy and deploy on their own social network pages.
• A custom flyer. Users looking to sell their cars had the option of developing a flyer at the AutoExtra.com site and running it on MySpace or on another blog.

One week after AutoExtra.com launched its social profile on MySpace, it had 100 “friends.” That number climbed to 600 within a month. According to Chris Thornton, chief marketing officer at Definition 6, social network users enjoy the AutoExtra.com brand and regularly pass on information from its profile to their friends.

Quick Tip
Offer something on your social profile that users will crave. For example, AutoExtra.com provides a combination of fun (music, badges, wallpaper) and utility (custom flyers). Also, develop a good understanding of social networking before you try it as an ad tactic. “Get your own Facebook account, your own MySpace account,” Thornton says. “Experience it. It’s not enough to know it’s popular. Get inside the tactic and experience it yourself.” Then you can apply lessons learned to your business development strategy.

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