Consumers typically see other consumers as the most credible source of information about companies and their products, therefore encouraging viral marketing ans social networks.

Ryan Moss
Research Analyst

Viral Marketing and Social Networks recently received good news when it was reported in Edelman’s Trust Barometer that consumers tend to trust other consumers more then any other source of information. According to Edelman’s Trust Barometer, about 60% of the consumers surveyed said that consumers like them are the most credible sources of information, encouraging news for companies that engage in viral marketing. Additionally, social networks often include features such as blogs, and online ratings and reviews that will continue to grow in popularity as consumers use them to gather information. In fact, according to a report by JupiterResearch titled "Social Networking Sites: Define Advertising Opportunities In A Competitive Landscape" online social network users are three times more likely to trust the opinions of fellow consumers over advertising when making a major purchase decision.

Research from the IBM Institute for Business Value suggests that there are several reasons why Internet users contribute to social networks and/or user-generated content web sites. The top two reasons are the desire to feel like they are part of a community (31%) and they want recognition from their peers (28%). Regardless of why they make contributions the information they are providing is extremely valuable to fellow consumers and will help social networks continue to flourish.