Fox Interactive Media has released findings from a study that looked at the growth and marketing power of online social networks.
Over 70 percent of Americans ages 15-34 are using social networking sites on a regular basis. The sites see a spike in traffic during primetime hours, which improves communication with family and friends along with building brand connections.
For part of the study, Marketing Evolution, a marketing ROI measurement firm, examined the impact of social interaction on advertising campaigns within MySpace. They found that brands such as adidas and Electronic Arts attributed over 70 percent of their marketing return on investment to the “Momentum Effect.”
The “Momentum Effect”, is a term created by Marketing Revolution that measures the effect of a brand within a social network and examines consumer -to- consumer communication.
The study found that 40 percent of social network users visit the sites to learn more about a product or brand they like, and 28 percent said a friend has recommended a brand or product to them.
Social networks are more popular than other forms of communication and entertainment according to the study. When asked what free-time activity they would prefer, users chose interacting on social networking sites over TV but equal with cell phone usage. For more on this you can read David Utter’s article here.
Social networkers spend on average over seven hours per week on sites such as MySapce, which increased the growth of overall time spent online. More than 31 percent of those who use social networks report that they spend more time in general online after starting to use a social network.
“Users are empowered to create and share, build and maintain relationships and in the process have created an entirely new medium that is deeply integrated into their everyday lives”, said Chris DeWolfe, CEO of MySpace.
“Smart marketers know how to tap into the passion and energy of individuals who care about their products to vastly multiply the impact of their campaigns.”
The study included approximately 3,000 U.S. Internet users, as well as MySpace clients for in- depth case studies.
