nurun | ant farm interactive's executive vice president, North America, explains what social networks offer, and who should be using them in their marketing plan and why.

Just when you thought you had the whole world of interactivity mastered, along comes the rise of the social network. Around the globe, it seems this "new" (not really new if you think of sites like Classmates.com, ofoto and Match.com) phenomenon has people scratching their heads asking questions like: What are social networks? Who's going there? Will the social network structure live and thrive or crash and burn? And perhaps most importantly: Should I be thinking about advertising on a social network?

With all the hype you'd think corporate America would be chomping at the bit to take advantage of the potential to gain exposure to millions of people. So, why are companies kicking the tires instead of taking social networks for a test drive? The main reason is because even though social networks are set up to be advertising properties, the conventional definition of advertising (pay for placement, put an ad somewhere, and get it in front of people) simply doesn't work in this environment. And that has marketers and companies stumped.

Therefore, if you're one of the many who are on the fence, wondering, "Should I or shouldn't I?" when it comes to using social networks to build your brand, consider the following:

1. It's alive. Social networks are living, breathing entities. Therefore, if you don't have the stomach for negative feedback or have control issues (meaning, you have trouble relinquishing it), then social networks are not for you. Once you decide to put a message onto a social network, anything can happen; your advertisement can be pushed out toward millions of viewers as a brilliant masterpiece (not brilliant ad) or blogged that it's the most unfortunate concept since New Coke.
2. Think: Social equity. Like a limited partnership, the value of social networks is based on what the partners or members bring into the community. For a marketer to simply advertise on a social network or push messages misses the point and ignores the central idea that makes the leading online communities such as Friendster and MySpace so successful. Messages that are self serving or one way will fail on social networks.
3. Your assets are your best feature. If you want to earn credibility and enjoy positive brand exposure, your best bet is to bring your marketing assets rather than your ads. Do you work with a celebrity who endorses your product or entertainment partnerships? Do you have access to something that everyone wants? The type of companies that will benefit the most from social network advertising are those companies with multimedia or entertainment assets (music, movies, behind the scenes); companies with exclusive tips and advice (fashion and beauty brands that have substantial content and experts about self improvement); and any company provides a value-adding service.
4. Let CRM lead the way. When you examine these social networks, you notice that the dynamic is more similar to customer-based marketing and eCRM than media. If you combine your best marketing assets with your approach to eCRM, you stand a better chance for success as you venture into the unknown territories of the social networks.
5. Don't be afraid to sit this one out. They're significant, but social networks aren't everything, and they're not for everyone. Remember no one (over the age of 14) spends 100 percent of their time on MySpace.

Whether you choose to jump right in or watch cautiously, take note of the phenomenon of social networks because it is a case of giving people what they want and giving them the freedom to create something themselves.

Michael Koziol is executive vice president, North America, for nurun | ant farm interactive. Read full bio.