Beyond social networking

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With 83 of the top 100 U.S. brands now investing in advertising on Facebook, we asked 2,000 consumers for their opinion on the effectiveness of different online advertising formats. The results were perhaps surprising given this rise in the popularity of social networks: according to the research, just 5 percent of respondents considered adverts on professional social networks, like LinkedIn, actually helpful in assisting their purchasing decisions on the web. This was only a little higher for personal social networks like Facebook, with 9 percent of the votes. In total, only 4 percent of those surveyed had ever clicked through on a banner advert displayed on a social networking site.

ENCOURAGING INDICATIONS
This low interaction suggests that adverts being used in this space are not yet having the desired effect in terms of audience participation. Despite this, there is some encouragement for advertisers targeting social sites. Less than a fifth of respondents considered adverts an active interference to their online activity, suggesting that they are open to the right kind of marketing and that there is still an opportunity for brands to improve the success of their online campaigns.

Activity from social networking sites is also encouraging. Facebook announced a partnership with Nielson Online to help marketers measure the impact of advertising on the social network. While a report by Interpret LLC suggests that Twitter users would be more open to ads. They are twice as likely to review or rate products, visit company profiles and click on advertisements or sponsors than Facebook or MySpace users are.

Companies need to remember that users logging on to social networks are there to network and not necessarily to shop. In respect of this, consumers need to be targeted in a way that is specific and tailored to their individual needs, meaning brands need to work harder to make sure they convey information which both captures their audience's attention and also enhances the consumer's overall online shopping experience.

AFFILIATE MARKETING
The online world is a vibrant and growing one and brands are continually looking for ways to break through that noise to engage directly with their target consumer. Affiliate marketing campaigns enable companies to spread their net widely and reach out to their consumer through multiple channels in a measurable and non-intrusive fashion.

The key to success is to respond to the consumer's needs: for example, voucher codes have grown exponentially in popularity since the start of the recession, creating an ideal tool for companies looking to raise their online profile and tap into new demographics. We work with a number of retail brands on voucher-led affiliate marketing campaigns to help stimulate sales and attract new customers through web-only discounts.

LinkShare coordinates activity with publishers in line with the brand's core marketing campaigns to help publishers understand the brand in more detail and encourage more interaction and exposure with voucher sites.

The bottom line is that there is no 'one size fits all' approach to affiliate marketing, whether you are talking about the latest social networking trend or a new technology tool. What works for one company may well not be right for another. The success and pitfalls of using ads within social networks is not yet clear and although signs are positive, more research and measurement will need to be put in place in order to verify these green shoots. Equally, voucher campaigns continue to meet with a positive response, but companies will need to work harder to gain consumer attention in a saturated market.

Brands need to invest the time to develop and maintain a targeted and strategic affiliate marketing campaign which closely matches their target audience. Those who do so will see the returns, both in the form of conversions to sale and, at the same time, a groundswell of brand loyalty and increased audience engagement.

* Research conducted in August 2009 with 2,000 respondents through Toluna, the online research panel provider.