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Does Web 2.0 really drive business?

Written by Sourav Sharma  · June 24, 2007

The following is a guest post by Sourav Sharma. Sourav is the owner of, a marketing blog with an essence of blogging, social media and search marketing.

We all know that loyalty pays. It’s widely said that more customer involvement will result in building more loyalty. And it is true as well. But the question remains, does Web 2.0 really bring loyalty and business? When we stepped into the Web 2.0 concept, many started believing that it would revolutionize the internet experience, and the user would have the final say. So, advertisers’ move towards these sites was pretty much expected.

Web 2.0 introduced the concept that users can play around with the content, and many seem to love contributing to and consuming that content. Many advertisers started their Web 2.0 campaigns with visions of generating more revenue than before, but the true picture tells a sad story. MarketingSherpa points out the black hole in the concept. According to the research, ads on a Web 2.0 site don’t convert quite as well as ads on traditional “Web 1.0″ sites.

When we talk about traffic, we can bank upon several 2.0 sites (like YouTube, MySpace, etc), but what we are not looking at is the maturity of an audience. The audience of these sites are still very young, so it’s not fair to draw a comparison. In my article SEO – Sandwiched between Conception and Misconception I showed some concern over the many professionals who have started believing that 2.0 sites rank better then non 2.0 sites. For me, this is also not true.

For me, the 2.0 sites have a long way to go compared to sites like Yahoo or CNN or even MSN, which already have established mature user bases and are doing well by changing and playing with various monetization techniques.

So we should give some more time before directly comparing 2.0 and non-2.0 sites.

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6 Responses to “Does Web 2.0 really drive business?”

  1. digitalnomad on June 24th, 2007 7:26 pm

    I agree, but it is just a matter of time. I read where 48% of marketers will experiment with 2.0 in 2007.

    Anyone who is well versed in the concepts as they develop will be the experts when the market matures. Heck the Internet is not even fully developed.

  2. digitalnomad on June 24th, 2007 7:29 pm

    George –
    This is off topic, but if you have experience with Yaro Starak’s course, cut me a message at Link and Blog Challenge. I see you are promoting it here on the top left.


  3. George Manty on June 24th, 2007 7:29 pm


    I am with you, web 2.0 is where it’s at. However, I have been wondering if web 2.0 doesn’t distract visitors. All the chatter may actually distract us from the information we want.

    PS. I have been meaning to contact you, but things have been unbelievably busy. Nice to have you stop by.

  4. Sourav Sharma on June 24th, 2007 11:36 pm

    We can see a trend towards the 2.0 sites – but for me still I don’t see those sites as a revenue model…

    Its a long way to go for them….

  5. Community Building Blog on June 26th, 2007 1:39 pm

    An interesting article. I have to admit that I am a little sceptical towards the whole ‘Web 2.0’ concept.

    – Martin Reed

  6. George Manty on June 26th, 2007 1:55 pm


    It will be interesting to see how web 2.0 evolves.