Social Networks Go (More) Commercial

This week, it was reported that MySpace and Facebook, the Internet’s two largest social networking hubs, are stepping up their efforts to turn their popularity into profit.

Facebook announced that it will start letting advertisers interact with its users, even when they aren’t on the Facebook site. The goal is to help advertisers sell services and target their advertising.

Meanwhile, MySpace’s plans center on democratizing advertising, and making ad space available to more people. Their plan is to lower the bar for buying ads and rolling out a self-serve model that allows everyone from bands to politicians to buy advertising on MySpace.

Will this commercialization of social networks spell the end of the social networking craze?

MySpace’s motto, after all, is “a place for friends” — not “a place to buy stuff.”

However, we can’t deny that social networks are the ideal place for advertisers to play. With important consumer data right at their fingertips, advertisers can precisely target their messages on social networks. In addition, consumers have already shown a remarkable affinity for sharing opinions on their social networking pages, including favorite products, movies, and more. Advertisers are merely seeking to capitalize on this trend.

And in an era where consumers look to other consumers – and, ideally, their friends — for reviews and recommendations, social networks are a goldmine.

Of course, it’s also possible that this commercialization could backfire and drive users away from social networks. However, the most lucrative demographic for advertisers — young people – grew up with advertising, and may be able to accept or even embrace it as part and parcel of their social networking experience.