Social networking sites have become big business. It’s no secret that the bigger social networking sites out there are making huge profits, and so are the companies that advertise through them. Some might argue that these websites are making money off of their users, and that they’re just using their members. Still, most people who belong to social networking sites don’t think they’re being taken advantage of. They see it more as a symbiotic relationship.

While the owners of popular social networking sites may be using user inputted data such as age, hobbies, interests, and other details to direct advertisers to key audiences, the users of these sites are also using this information to make friends. A member of a social networking site can easily perform searches for people with similar interests. He can then narrow his search by physical proximity to his place of residence. He can further refine his search by age. In short, social networking sites give people the power to meet and interact with people right around the corner who they never would have otherwise met.

The ready availability of this information is perfect for advertisers. Say an advertiser has been hired to promote a new brand of paintball equipment. The advertiser could try to run ads during the evening hours on sports related channels and hope to hit his target audience, but there’s no guarantee that his ad will reach the right people. He could also run a print ad in a paintball related magazine, but that magazine would already be saturated with paintball related ads.

With social media sites, that advertiser could agree to pay X amount of dollars for each advertisement that gets posted to the page of people who have listed “paintball” as one of their interests. Right away that advertiser has found a way to reach thousands of people who know about and enjoy paintball, without wasting a single ad on people who don’t enjoy the sport. This allows advertisers to reach potential clients with mind boggling efficiency.

These sites can frequently also be used to organize events or activities. An event can be planned, and a message can be sent out inviting people. Those who rsvp can be added to a special list of people who will continue to receive updates about the event as the administrators post new information. These guests can also invite other guests, creating a ripple effect. The result is that a community event can draw much larger crowds with much less effort.

Advertisers have only just begun to realize the potential of these websites. As more and more of them spring up in more and more specialized communities, advertisers are bound to cash in.

The most difficult aspect of marketing is not deciding on a message or image, but rather, the distribution of the message to key marketing groups. Radio ads, television ads, print ads, and billboards have all been used in the past to promote products, political candidates, and foundations. The trouble with these ads is that there is very little control over who actually interacts with them. Advertisers can attempt to place ads targeting children during children’s programs, but sometimes the demographics don’t always watch or listen to what the advertising agencies expect them to.

The creators and administrators of these websites see the benefit in terms of cash. For many of these sites, the start up cost was minimal. For the price of some server space, and a little skill, programmers were able to set up social networking sites on the cheap. Established sites aren’t cheap anymore though. Now many of the same sites started out of basements are selling for millions of dollars, and turn millions of dollars in profits annually. For many of the college age kids who start these sites, this means an early retirement.

However, they don’t just give users the ability to meet people right around the corner, but also to meet people on the other side of the world. Many of these sites have built in translators, making it so that you don’t even have to speak the same language as someone to befriend them. A person living in Massachusetts could befriend a Russian based on a commonly listed interest. For many users of these sites, life without them is unimaginable. They make managing friendships, appointments, and activities easy and seamless

Social media sites don’t just introduce people to one another, they also help people who already know each other keep in touch. It’s no longer necessary to send letters out to all of your friends if you move. You can simply send out a message through a social networking site, or update your profile to reflect your new address. Friends will be notified about the change, and you won’t have to worry.

Recently, some social networking sites have experimented with selling the email and home addresses of many of their users. Some sites have claimed that their privacy policy gives them rights to any information posted on their sites and therefore can sell the information to third parties. Whether or not this is legal or ethical remains a heated debate.

Advertisers have only just begun to realize the potential of these websites. As more and more of them spring up in more and more specialized communities, advertisers are bound to cash in.