In a previous post, I poked fun at all the Web 2.0 hype and jargon. I do think, however, that we have entered a new and distinctly different phase of the Internet. IMHO, it’s being driven by the fact that the primary business model for most sites on the web has changed. And it’s this change that is aligning the economic interest of sites to do things like support mashups.
Web 1.0 was dominated by media driven business model – i.e., deliver ads to a captive audience. The goal was to capture users, lock them down (in a “walled garden”). To do this, businesses spent tons of money negotiating multi-million dollar distribution deals with portals (walled garden versions of a search engine) and developing their brand with display advertising.
Web 2.0 is dominated by a lead referral model – i.e., delivering prospects to your advertisers. The goal in is to entice users to your site. To do this, businesses are becoming more open and interconnected within their ecosystem. They are syndicating their content, opening APIs, offering affiliate programs and embracing search. They succeed when they find ways to bring more prospects to their site. As I previously posted, it’s no longer about lock-in, it’s about “love-in”.
Most ecommerce sites are far down this path. Classified publishers are just starting.