By Tim Ferguson, 2 May 2008 16:07
NEWS
Retailers need to wake up to the potential of social networks in order to tap into the huge numbers of consumers using the sites.
Analyst house Gartner says social networking sites are starting to attract a broader spectrum of consumers with the rise of career-based networks such as LinkedIn and shopping-based sites.
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Hung LeHong, research vice president at Gartner, said retailers have previously seen social networks as relevant only to younger consumers so have not given them the attention they deserve.
Lehong added retailers could create social communities for product feedback and use social networks as an effective marketing tool.
Gartner's tips for retailers wanting to get in on the social network action include looking beyond the big names of Facebook and MySpace due to the huge amount of activity in the area.
Retailers should also look into the potential of viral marketing campaigns on social networks, as well as building third-party applications.
Amazon, for example, recently unveiled its social shopping application for Facebook.
But Gartner warns social networks aren't yet ready for commerce so retailers shouldn't jump in before they have understood implications.
Comments
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1. Lesley payne
As a global recruiter within tjhe niche sector of Risk and Threat ,Networking sites such as Linked In, Plaxo and Ecademy are invaluable in locating potential candidates but the downside is that as an open networker ( necessary to rapidly increase gloabl contacts) you become vulnerable to spam and I now receive a vastly increased number of offers to make me rich or increase my performance! if I am then targeted by online advertising in an aggressive form it may tip the balance and m ake these sites less attractive... advertising is fine but retailers need to be clever as to how it is perceived and delivered.