Web 2.0, through engaged participatory interaction, has brought about radical changes in the online business scenario. It is often explained as an open space for everyone to exchange, add and edit information through web-based communities and hosted services like social-networking sites, blogs, wikis, pod casts, multimedia sharing, content syndication, content tagging services and folksonomies.

Web 2.0 has created a new form of economic value known as peer production, by which the users recommend the use of a product or service. It takes into account user ratings, product reviews, online user forums, feedback and blogs, some of which have become an increasingly credible and trusted source of information for a number of online shoppers.

Participation and collaboration are the two main areas where Web 2.0 is a step above its predecessor. User feedback in the form of ratings, product reviews, and forums are driving forces behind purchase decisions. From a business perspective, customer conversion rate, return visits and promising ROI are the key benefits of Web 2.0.

Partnership with social networking sites provides ample opportunities for marketing, especially for newer products. Word of mouth or viral marketing is a very useful tool for targeting specific user groups. Web 2.0 has redefined the business process, giving it a multi-functional look and triggering engaged customer interaction.

You can visit Web Spiders to learn more about how Web 2.0 can benefit your business.