Social networking 'a good market research strategy'

Category: Web 2.0

June 23rd 08, 11:01

Market research is one of the key advantages of social networking for businesses, one industry organisation has said.

While the main aims of sites such as MySpace and Facebook are to "educate, enlighten and share experiences, expertise and knowledge", Tim Gibbon of the Social Media Portal (SMP) observed that these can be achieved "in tandem with commercial sensitivities".

By developing a sophisticated approach to online communities, firms can conduct valuable market research and get to know their customer base, he advised.

The SMP co-founder and editor was commenting after LinkedIn, the social networking website aimed at businesses, was valued at $1 billion (£512 million) following a $53 million cash injection from a funding round led by private equity company Bain Capital.

Mr Gibbon advised that firms avoid the "hard sell" when approaching social networking in favour of a subtle approach that acknowledges the key role played by relationships in the sector.

This news story was brought to you by Bluhalo, a leading UK digital agency.

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