By Tim Ferguson
Friday, July 06 2007 12:18 PM
URL: http://www.zdnetasia.com/news/internet/0,39044908,62027813,00.htm

Social networking sites are not generating significant online retail sales for companies looking to exploit the growing phenomenon.

The networking sites have little influence on where people go to shop online, according to a United States survey by Jupiter Research.

Only 12 percent of online shoppers quizzed said they buy more than planned as a result of using a social networking site.

The analyst's US Retail Consumer Survey, 2007 also found 53 percent of online shoppers go straight to the site they want to buy from, rather than being directed there by a social network site. Just three percent said they use blogs as a route to online shops.

Jupiter Research analyst Patti Freeman Evan said shoppers are looking for fundamental information when researching products online--rather than entertainment or social interaction.

She added that despite the attention on social networking from a branding and advertising perspective, sites simply don't offer the convenience and efficiency of retail sites.

David Schatsky, president of Jupiter Research, said there is a tendency for organizations to gravitate towards the latest way of "getting noticed" without knowing whether the approach will work.

He added retailers would do better to evaluate what is effective to make a stronger impact, rather than just following a trend.

But the report indicates social networking sites serve to reaffirm purchasing decisions, with 29 percent of respondents saying they make better decisions using them.

Tim Ferguson of Silicon.com reported from London.