Looking at Google's help information, it looks like it is hurting the campaign:
"The Quality Score related to Ad Rank on the content network is determined by:
-The ad's past performance on the site in question, as well as on similar sites"
I wanted to see what thoughts people had or if I'm reading too much into the above language.
"The ad's past performance on the site in question, as well as on similar sites"
My guess is that Google addresses this by categorizing "similar sites". If your performance on social networking sites is similar to other advertisers (which I believe it is) - then, your results on these sites should not be a detriment to your overall efforts.
johnnie, Google has explicitly stated that content network CTRs don't affect search. The trick with the content network it to run that in a seperate campaign and use site exclusion to weed out poor performing sites. I've had good success doing that with slightly lower bids than search campaigns.
Khensu, that's probably a good rule of thumb. Honestly, I don't mind the extra impressions (there has to be some limited brand effect), but not if they are hurting the overall content campaign.