Social networking sites have become the latest popular phenomena exploding across the internet. These sites have experienced phenomenal growth both in terms of numbers of users and the rate of growth. For example, the site MySpace.com reported 114 million visitors in June of 2007, while Facebook experienced 300% growth in 2006.

Additionally, sites like Badoo in Europe (12 million), Cyworld in South Korea (21 million users), Hyves in the Netherland (3 million) Orkut (owned by Google and popular in Brazil and India-67million)and Mixi in Japan (9 million) indicate the phenomena is truly global in scope

Having monthly traffic in the millions is significant. Such large numbers have attracted the attention of businesses seeking ways of capturing the attention of the potential customers.

Consumers now talk and interact with each other over the internet. This means that news about a product, whether it is good or bad news spreads quickly and broadly. A disgruntled customer can spread the message around the world with a few lines written from their keyboard. Their message could influence the opinions of potential other consumers faster than correction can be made in the product.

This shift in consumer focus is a result of new technologies popularly referred to as Web 2.0. These new internet technologies place more control in the hands of the consumer. The challenge within Web 2.0 is for the marketer to obtain the consumers attention and maintain that attention. Not only must the attention be obtained, the reputation of the product is essential. The internet allows consumers to rate compare and discuss products with other consumers. In many ways the internet reduces the incidence of quacks and swindlers.

With such potential impact, it is important that businesses understand the impact of “Web 2.0”. This new approach means that Businesses will want to connect with and interact with those who use their products in an interactive manner. This trend of having increased interaction will become even more crucial since increased interactivity and personalization are some of the hallmarks of future technology and what “Web 3.0” promises to be.

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