The Internet is currently second only to TV as a frequent “Source of Entertainment”.

Recent research reveals consumers in UK and US recognize social networking as Entertainment. A study by Edelman (the world’s largest independent PR agency) is showing consumers believe social networks provide a higher value experience compared with other forms of entertainment.

Edelman’s annual Trust in the Entertainment Industry surveyed 1,000 18-54 year olds in the United States and United Kingdom to better understand issues influencing consumer trust in entertainment companies. In the US, the rise of the internet as a frequent source of entertainment is most noticeable in the 18-34 group, rising from 27 percent in 2009 to 42 percent in 2010. Also 32 percent of 18-54 year olds look most frequently to the web for entertainment (compared with 58 percent watching TV). In the UK the internet also ranked second in the UK, with 30 percent turning to the web most frequently, compared with 57 percent watching TV.

The study shows 73% of 18-24 year olds in the US consider social networks as a form of “social entertainment” compared to 61% in the UK. Fifty percent (US) and 56 percent (UK) of respondents aged 35-49 also consider social networking sites as a form of entertainment.

Despite the growth of social networks and entertainment, consumers do not currently identify Internet brands as entertainment companies.

The majority of respondents in both the UK and US felt social networking is providing better value than music, gaming and television companies are.

Gail Becker, President of Edelman’s Western region comments, “While not surprising that TV tops the list, seeing the internet rank second as a source of entertainment – evolving from its origins as a source of information – is significant. We believe that all companies today exist in this new era that we call social entertainment and we will continue to see its influence on how consumers and companies engage with entertainment and with each other.”

Personal information was shown to still lead social networker’s concerns with 89% of them saying they would not be willing to give up personal information to access free entertainment.

Jonathan Hargreaves, Managing Director of Technology, Edelman, Europe adds: “The study shows that consumers do value privacy but perhaps they are not considering the personal information that they already distribute freely via social networks. Social entertainment impacts the role of privacy – both in how individuals behave online but also in terms of how entertainment companies use customer information. This new era has created a shift in the trust dynamic and businesses must consider the implications of this in order to nurture future trust in a brand.”

Despite this move towards social entertainment, spending on entertainment continues to stay strong according to studies recent results.

On average, US respondents spend $47 per month (UK spends GBP25/month) on entertainment content, with ease of purchase being a dominating factor.

In the UK consumers who think social networking is a form of entertainment are more likely to have spent more money on entertainment.

Further information on this survey can be found at: http://www.thenakedpheasant.wordpress.com

Nora Whithers, Contributing Author, HowToMarketYourBusinessNow.com