As MySpace and other social networking sites have grown, they have drawn more and more ad dollars. Last week, Facebook tapped Microsoft for ads, while MySpace recently forged a similar deal with Google. In addition, ad holding company Interpublic Group recently bought a small stake in Facebook, and promised to purchase ad inventory on the site.
Peter Blackshaw--chief marketing officer for Nielsen BuzzMetrics, which monitors online "buzz" about a variety of topics--warns that the growing corporate presence on social networks is a topic of significant discussion among users.
"Advertising can be a huge turn-off if over-deployed," he cautioned. "As advertisers try to figure out the CGM space, they're kind of blurring the line between authentic content creation and advertising. That could definitely backfire."
He added that MySpace was particularly at risk. "MySpace is introducing this more blended form of advertising, in which brands can create their own pages and have their own friends list, and that's the zone that is sort of unproven," he said. "It potentially has a higher turn-off factor because consumers may perceive it as 'over the line.'"
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