Posted to Ben Finklea's blog on November 6th, 2008

Web 2.0 + Online Advertising $$$ = The Honeymoon is Over

web2_0_0_0.jpgLast night my family was eating at a friend's house and their thirteen-year old son referred to his plate of beef stroganoff as “Barf 2.0”. I couldn’t help but chuckle, to the chagrin of my wife. It suddenly occurred to me in this moment of familial adversity not only how uncomfortable our sofa was, but also how influential the second web-based boom has become in society.

You may have been hearing the term “Web 2.0” quite a bit in the last few years, with new internet-based companies like Twitter, Youtube, and Facebook infiltrating your home. "Web 2.0" refers to the companies who have revolutionized ways for us to communicate, consume media, organize businesses, or to relate to one another. A major misperception of the second web boom is that there is a bottomless well of advertising dollars to go around.

It is true that online advertising has experienced more than 20% growth a year for the past five years, but recent economic trends show there will be a flattening out of sales very soon. Theoretically, all online start-ups in the “second-coming” will be advertising-supported. However, advertisers are becoming more conservative than in the past few years. This means they will be under pressure to justify their buys and show quantitative results for their invested dollars. It is very important that SEO companies continue to evolve their analytical features and to keep up with an industry of the future.