This IDC study describes the opportunities and challenges social networks present to companies that do business in the digital marketplace. This document:

• Defines the terms "social network," "social networking service," and "user-generated content"
• Provides an overview of the current state of social networking services in the United States
• Outlines the business benefits of social networks as well as the business models they support and the opportunities and challenges their monetization presents
• Sketches the future of social networking and the strategic threats and opportunities tied to it

"Social networks are here to stay, and they will become even more popular and influential for both media and ecommerce companies. Operators are only beginning to learn how to monetize social networks. Advertising will eventually be big — but some services may never be brand safe enough to attract brand advertisers," said Karsten Weide, program director, Digital Marketplace: New Media and Entertainment.