Be subtle on social networks, businesses advised

23rd June 2008

UK firms were last week warned that a brash approach to marketing on social networking sites could be detrimental.

The Social Media Portal's (SMP's) Tim Gibbon recommended that companies ensure they understand the aims of websites such as LinkedIn, which was last week valued at $1 billion (£512 million).

Mr Gibbon claimed that it is possible to combine "commercial sensitivities" with the central purpose of social networking sites - to "educate, enlighten and share experiences".

However, firms that adopt the "hard sell" approach may find themselves shut out of this lucrative arena, the SMP representative added.

LinkedIn's £1 billion valuation emerged last week after a funding round led by the Bain Capital private equity firm invested £53 million into the corporate networking website.

According to Mr Gibbon, the advantages companies can gain by using online communities in an informed way range from market research to increased opportunities to network with other firms in their sector.