Social networking sites have caused a fundamental shift in the ways in which people interact with each other and the media, as well as and brands, a new study has found.
More than 40% of those who use social networks used the sites to learn more about brands or products they like. Some 28% said that at some point a friend has recommended a brand or product to them, according to the study released by Fox Interactive Media.
“There is no doubt that social networks are a phenomenon, but it’s our job to continue building our products in a way that maximizes the experience for both consumers and advertisers,” said Michael Barrett, chief revenue officer of Fox Interactive Media, in a statement.
Part of the study looked at interaction on MySpace.com. The research found that brands like adidas and Electronic Arts attributed more than 70% of their marketing ROI to what is termed the “momentum effect.” The effect quantifies the brand’s impact within a social network beyond traditional advertising metrics to include the pass-along power of these sites. (The term “momentum effect” was coined by Marketing Evolution, according to the report).
More than 70% of Americans ages 15–34 are actively using social networking Web sites, with a strong focus on primetime hours to engage family and friends. The study found that this group is using such sites more than other forms of communication and entertainment, ahead of watching television and on par with using a cell phone, the study found.
And they’re spending plenty of time online.
Social networkers spend more than seven hours per week on average on the sites. Some 31% claim their use of the sites has prompted them to spend more time online. The study reinforced MySpace’s popularity in the social networking world, with respondents giving it an overall user satisfaction rating of nearly 80%.
The study examined the growth and marketing power of online social networks. The research was conducted in partnership with isobar and Carat USA by marketing research firms TRU, TNS and Marketing Evolution. The study incorporated feedback from 3,000 Internet users.
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