Marketers’ presence on the sites is growing, and is drawing consumers’ free
media time less than a year after brands took to the social network scene. Yet,
while one some see it as a desirable inevitability, others caution that
participation with a brand is not always endorsement.
MediaPost Publications – Marketers Make Friends With Savvy Online Consumers – 01/21/2008
LENDING CLUB, A FUNDS EXCHANGE and lending network, launched this fall … on Facebook. As a social network, Facebook helps consumers build trust in the brand partners presented to them, says Lending Club COO John Donovan.
Word-of-mouth–or rather word-of-mouse–marketing is a natural outcome of social networks. Consumers compile connections and further feather their nests with friends of friends. Lending Club’s business model leverages these links, inspiring borrowers’ responsibility by engaging investors from their communities or extended social groups. (Lender funds are aggregated before monies are distributed to borrowers, reducing lender risk further and adding anonymity to the borrower’s side of the deal.)
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