Social networking a risk for online marketing

Firms that use social networking sites as a channel for online marketing could be taking a risk, it has been claimed.

Mike Hare, research director at statistical consultancy DataTalk Research Limited, said the technology has a future in e-commerce but remains a relatively untested platform.

"There have been some good examples and some calamitous examples so far in that field and you take a risk because it is particularly interactive," he continued.

Mr Hare went on to say that in terms of marketing the facility is less easy to control than others such as print media, broadcast and mail.

He added that as soon as social networking sites are used, the potential for negative publicity is as great as the chance of positive advertising.

Studies published by market research company Nielsen Online indicated Britons are spending less time on communication and content sites and more on consumer-generated media, and search and entertainment sites.