Web 2.0 is open source software, blogs and RSS feeds. Well-known Web 2.0 companies and sites include Skype, MySpace and Flickr.

The essential difference between Web 1.0 and Web 2.0 is the ability of the reader to interact with the site. While Web 1.0 is largely based on giving information to readers, for example brochure sites, Web 2.0 represents more of a conversation between websites and the entire internet community.

Originally used as a trendy way to indicate an improved form of the internet, the term as coined in October 2004 now contrasts Web 1.0’s stand-alone static HTML web pages, with the new open, dynamic Web 2.0, where social networks are king, and the emphasis is on collaboration and syndication. We are told the new Web will be more interactive and therefore more democratic, as the exponential growth in open source software, blogs and RSS feeds indicates.

What does Web 2.0 mean for online marketing?

In the fast-approaching future, getting your site into more prominent positions in search engines and in prominent places online will be different. Understanding search engines will remain extremely important for online marketing success.

Web 2.0 is fast turning the net into a land of intertwined interest communities. It is these communities that will “judge” your site, and therefore the better the content and the more interactive your website, the better these ‘communities’ or ‘hubs’ are likely to rate you. It’s all about creating interest and encouraging readers to return on a regular basis.

Ask (formerly Ask Jeeves) are the first to change their method of ranking sites from the Web 1.0 to the Web 2.0 approach. Their ranking algorithm is now built around the core concept of expert communities or hubs. Even thought Ask represents only 2-3% of searches online they are obviously trailblazers and we expect the likes of Google, Yahoo! and MSN to follow suit.

LeadGenerators predict that Web 2.0 will have the effect of levelling the playing field again. This is great news for small to medium size companies who are feeling the pinch and are being squeezed out of traditional SEO and sponsored links programs due to high costs. The opinions and the involvement of these communities with your site will become more important for your business than increasing your online budget. Web 2.0 will reward quality; and if your site is good enough and visible enough; you’ll be successful!