Social networking in small business - worth a go or fruitless?

It's a fair bet that at some point you've opened your inbox to find an invitation to join in the fun of social networking, an Internet phenomenon that has worked its way into public consciousness largely through word of mouth and an abundance of press coverage. Whether you enjoy being poked on Facebook, love discovering new musical talent on MySpace or have revealed your deepest secrets on Twitter, it seems that the craze for social networking has taken over the world. It's no wonder the business community is looking to how it can get in on the act.

It's easy to see why aspiring businesses would be enticed by social networks. Earlier this year it was revealed that there were over 14 million users of Facebook in the UK – and considering the huge range of information that Facebook captures from their users, surely this is a simple, effective platform for nabbing new customers?

Sure enough, Facebook offers Social Ads, a comprehensive marketing service that matches companies to specific demographics through targeted advertising. Picking out niches from millions of users is a skill that Facebook have honed well, thanks to their subtle use of detailed user profile information right down to favourite television programmes or relationship status.

However, the efficiency of Facebook's advertising services has been called into question. The reality of social networking is that people log on to be social; they are not there to click on adverts. The likes of Facebook and Bebo succeeded initially by offering a simple, fun place to interact; bring a corporate presence into the equation and users tend to not be interested.

This doesn't rule out social networking as a valid business tool. Many small firms have set up 'pages' with Facebook that act as a one-stop resource for company news and latest product offers; you can attract 'friends' to your page and send them information by e-mail, but the page can be seen 'publicly' and so does not require the reader to have a Facebook membership. A good example of a company page is WeCanDo.biz's Facebook presence.

The reality of social networking though, much like that other new-fangled business tool of blogging, is the constant time and energy involved in getting off the ground, interacting with online friends, and most importantly, keeping your online presence fresh and updated. Also, some businesses suit social networking more than others; Facebook, MySpace et al are still predominantly used by younger, net-savvy audiences, although the demographic is changing as more older users give social networking a go.

Those gurus of innovation, Google, may have pushed social networking for small business forward when they launched Friend Connect back in May. By simplifying the technology into 'widget' form, Friend Connect makes it easier than ever to bring the functionality of social networking to your own web pages, in theory converting your visitors into 'friends' who are inspired to regularly return to your web site.

I'll leave the full explanation to Google, but in summary, Friend Connect has the potential to work in a local business context. Imagine collecting 'friends' who are then alerted to new products or services; in turn they can provide feedback on the product, as well as pass on the news to other 'friends'. At the time of writing, Friend Connect still hasn't been formally released for public use, but when it does surface we will hopefully follow-up will a detailed analysis.

While some may think muscling in on the social networking phenomena is a necessity, it's also important for them to remember the primary reason why people enjoy these sites – the enjoyment factor. That's where subtlety becomes important; sure, online tools are more accessible and exciting than ever, but businesses need to connect with the trends of the day without it changing the face of their own day-to-day business.

Talking to Businessweek, leading web expert Peter Delgrosso from web.com gave his tu'penny worth on the social networking debate:

"For the most part, these social networking sites should be viewed as complementary to your online presence. Think of it as a nice-to-have, not a must-have. When used properly, it is something that can gain your business some attention. However, you need to realise it shouldn't be seen as a replacement to your traditional online presence."

While most businesses have pushed ahead with plans to capture the attention of the internet generation, it seems the jury's still out for some. We will cover social networking in more detail in the coming months; in the meantime, if you have used these tools as part of your company's online presence, then please let us know your opinions by leaving us a comment below, or via e-mail – businessblog@friday-ad.co.uk.