PARIS: First came the soaring ascent of online social networking sites and now comes old fashioned soul searching about a sprawling universe where staid advertisements can scrape up against profiles of giddy young professionals and pages devoted to self-proclaimed angry "straight, white men."
While sites like Facebook, MySpace, Bebo and Habbo Hotel have a powerful allure, the companies that run them are finding themselves on the front lines of criticism about fast-evolving standards. Some of the criticism in Britain involves advertising for junk food that is migrating to the sites from children's television programming, where such ads are now banned, and corporate concern about employees distracted by time-sapping virtual networking.
For traditional advertisers rushing headlong into this new territory to reach tantalizing, young users, the ultimate nightmare is the surprise of sharing virtual real estate with risqué material or racist rants.
"Ultimately there are going to be mistakes and unfortunate incidents," said Debra Aho Williamson, a senior analyst with the research firm, eMarketer, and the author of a report predicting that global advertising spending on social networks would grow to $3.6 billion by 2011 from $445 million this year.
"Social networking content is very dynamic and it's always changing," she added. "We're moving to a world of user-generated content and it's changing on a minute-by-minute basis. I think marketers are just going to have to get used to it."
Online advertising is a vital part of development for social networks, which have grown dramatically in the past two years with MySpace attracting more than 114 million visitors internationally in June, followed by Facebook with 52.2 million and Bebo at 18.2 million, according to comScore, an Internet tracking service. And all of those sites are feeling some growing pains.
In London, with the number of Facebook users swelling, government agencies and six companies, including Vodafone, Virgin Media and First Direct, made a jumpy, temporary exodus from the site this month. The companies withdrew advertising accounts from Facebook after their brands surfaced in blind purchases alongside a page for the anti-immigrant, right-wing British National Party.
Now the party's Facebook profile has been whisked clean of advertising, but the government's Central Office of Information has temporarily pulled advertising until it receives assurances about appropriate placements.
Other companies are jittery for other reasons; Credit Suisse and Dresdner Kleinwort cut off company access to such sites because of concerns about unproductive use of work time.
"Access to Facebook is denied by our automatic Web site filtering software as it may contravene our Internet use policy," said Murray Parker, a Dresdner Kleinwort spokesman. "Dresdner Kleinwort only provides Internet facilities to staff for the purpose of conducting company business."
MySpace and Bebo, which has evolved into the most popular social site for European users, have already given their assurances to British government authorities. Facebook, as well, announced last week that it was developing new systems to allow advertisers more control.
But the controversy in Britain has had an impact on all companies in the social networking category, many of which have been taking steps to highlight their ethical responsibilities, by hiring special "safety officers" or to refuse ads for profile pages.
"Bebo, unfortunately, gets tarnished with the same brush as Facebook, which is very new in the U.K. market," said Mark Charkin, head of Bebo sales for England and Ireland.
The British flap happened just after Bebo rolled out an edgy new series called KateModern, which it had commissioned from the producers of infamous and fictional Lonelygirl15, a Web series about a young girl named Bree. The ambition is to attract more users to the site, but also to tap a new revenue pool by integrating products into the story line to give advertisers greater exposure instead of click-through advertising banners.
The advertising is just starting to surface, like a glimpse of a Microsoft brand on a computer. But Charkin said no ads would appear in the more serious and dramatic scenes. Orange, Proctor & Gamble and Buena Vista, have all signed up to give their products bit parts, according to Charkin.
Bebo and Habbo House, an animated world with sites in 19 countries that draws users between the ages of 10 and 16, are both integrating candy and food advertisements into their sites, which has drawn particular criticism in England, where authorities banned junk food advertisements in April for television programming aimed at children aged 4 to 9 years. At the start of next year, the ban will extend to programs for viewers younger than 16.
Bebo has been running a campaign for Skittles candy, "A World of My Own," that offers users a chance to create their own ads. Habbo Hotel, with its headquarters in Helsinki, Finland, incorporates brands like Burger King or Juicy Fruit gum, into the public spaces where players hang out in rooms with shiny tile floors and counters that look very similar to a fast food restaurant. "We think the future is having users acting or interacting with your brand. How do we solve that?" said Henrik Hoglund, who leads advertising sales for Habbo. "By setting up a competition, a quest and other things that can activate brands."
Habbo, according to Juhani Lassila, a company spokesman for Sulake, the parent company of Habbo, has adopted a code of following the rules in different countries; in the case of Britain, it is not showing the Burger King advertisements on local sites.
A Bebo spokeswoman, Sarah Gavin, said the company was working with the British regulator Ofcom and was following guidelines from the U.K. Advertising Standard's Authority.
Some institutions have reacted by building their own walls. A number of schools, companies and government authorities are filtering out social networks by blocking access. That counter-reaction has been building over the past three months, said Greg Miller, the head of sales for Email Systems, a Web services company, which also filters billions of mail messages a month for hundreds of private and public clients.
"Social networking has come into the fore in the work space," Miller said. "People knew it was there, but they were quite happy to not necessarily ignore it, but to accept it. But now it's gotten to the point where they can no longer tolerate it."
But the desire to communicate about personal issues is a powerful force. One of the newest entrants into the field is an international Web site called Respectance, which is creating a virtual memorial for the dead that enables surviving friends and relatives to create and share user-generated tributes and obituaries.
Ultimately, the company's founders and investors want advertising, but they are moving into untrammeled territory while striking the right dignified tone. "This has to be handled very carefully," said Barend Van den Brande, a partner in Big Bang Ventures, a Belgian venture capital fund that has invested in Respectance. "What you don't want to see is an ad for a BMW on your grandmother's obituary."
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