Where is Web 2.0 Going

From what I see, it's just the beginning. I define Web 2.0 as next generation internet companies that use social networking, and open publishing platforms for communicating. MySpace, Blogger and HubPages are all examples. So are Flickr, YouTube, Widgetbox and WikiPedia.

Some of the underlying themes are communicating with friends and citizen journalism. Most of the innovations has come through tools like easily posting videos, wikis, and publishing platforms like HubPages.

I suspect that just when Venture Capitalists start calling publishing tools a commodity business, we will see a major breakthrough in innovation. I consistently see new uses for media and believe we are just starting to realize the power of connecting people, communicating and sharing information.

From a business perspective, I think getting in-front of the wave of advertising dollars moving online will be critical to the success. Reach will always play a major role in getting ad dollars from impression based businesses. But, figuring out microeconomics that can scale to a reasonable size business will be key. Can companies succeed on Adsense alone or must they have direct relationships with advertisers? Will business models emerge for widgets? Will community based sites command premium ad dollars?

Without these items, it will take enormous scale to make an attractive business that are acceptable to the public markets. I believe that these questions will be answered and become formulaic in building successful web based media businesses in the next three to five years.