Web 2.0 is a buzz term that highlights the way in which the internet is now understood and absorbed. Formally Web 1.0 was all about receiving content that is a company, individual or group would place information on the web and a consumer or user would access that information it was a one way process. However, with web 2.0 suddenly the internet and the www is far more dynamic as users are able to communicate with each other as well as will other companies. Social media networks is a prime example of how web 2.0 works as users can share links, publish content and even respond and write to each other in either a formal or informal manner.
This has many positive ramifications for companies as well as some negative ones.
Firstly, the positive: Companies can now truly understand what consumers are looking for out of their brands, what elements of the product work and what elements need changing. This can allow them to tailor are product that best suits the user. Furthermore, as 'Web 2.0' is dynamic, it allows companies to not only tailor the product to suit the masses, but tailor the product to suit the individual. Take YouTube for example; YouTube automatically stores a record of clips and videos that you have watched and compiles a list of recommendations, the same can be said for online book stores such as Amazon which can suggest to you other books in the product category or other products users have chosen.
Many other online shopping stores, and even blogs are using this form of personal recommendations to drive sales.
Moreover, this concept of targeting the individual extends to the long tail theory, this theory highlights how online stores can tailor their product not only to benefit the majority but also a minority of users. For example netflix, or itunes can store a far greater selection of movies online then it would be possible for a store of bricks and mortar to stock. This means that movies that normally appeal to a very small niche of the customer base can be sold and even stocked as with the internet it becomes viable. The same can be said for online clothing shops as the internet is their shop-front the can keep far more stock in wear-houses without a smaller need to run stock clearances.
Despite this abundance of positives there are some negatives that come along with user generated content.
Due to the nature of the user generated content, the overall content is out of the hands of the companies. Word of mouth and the freedom of speech the internet allows dictates that companies cannot control all that is said about them.
PR disasters run wild as the gain momentum through the voices of the many users of the internet and social media
A prime example of this is how the BP oil disaster was highlighted on Twitter.
A Twitter user created a satirical BP twitter account this account became extremely popular during the high of the BP oil spill disaster earlier this year and reached far more followers then the real BP did. Many people experienced the company almost uniquely through the eyes of this satirical BP twitter.
a quick look at the Twitter accounts stats indicate just how popular it is:
What’s more users can share negative PR and publicity like the Greenpeace campaign to put pressure on nestle to stop using Palm oil in the kitkat and look for an environmentally friendly alternative.
This Greenpeace youtube led to the Nestle fan page being flooded with negative publicity!
The effect of this campaign is clear with Nestle bowing to the pressure of Greenpeace and changing the way they Nestle makes the confectionary.
If your a business make sure its working for you and not against you!
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