Razorfish recently conducted a survey of its Social Network users, and based on the results of over 1,000 responses they do not mind the presences of advertisements on the sites. Given there are some social networks that do a better job of integrating advertisements into the their user interface than others, making the advertisements integrated into the experience instead of a large flashing portal on the side of a page. The survey says 76% do not mind seeing the adds and 40% actually purchased from them.
The article goes on to discuss the value proposition and monetization strategies that exist in social networks, and how companies are being proactive in investigating these spaces. Razorfish's suggestion is that content and services distribution is becoming more important than Web destinations. The development of widgets to promote word of mouth marketing is a growing strategy as well as targeted recommendation marketing. sixty-five percent of survey respondents said they made repeat purchases from a Web site that sent them a recommendation based on their purchase history, and there exist opportunities to use social network feed information to develop applications around peer-to-peer recommendations as well.