As previously stated, Web 2.0 relies on mass participation. The more you put in the more you get out of it. GiffGaff is an example of this, a mobile network run online through a community, if it’s members help solve other member’s issues or recruit more people onto GiffGaff they are rewarded with credit, and as this expands, more people join the greater the experience and rewards will be.
The way that many websites make their money or cover their running costs is through advertising. Double Click offered an advertising solution that was very web 1.0, you had to have it installed on your server, therefore this was a barrier to getting their software to mass market and making it accessible to the masses! Google oblitered this model with adsense. That the code could be installed into website design, could be featured not only on webpages but also search results and now on mobile devices. This requires very little technical know how and capitalises on “The Long Tail Theory”.
After Adsense out performed DoubleClick with this model, with having hundreds of thousands of adverts if not millions on the web it proved that a multi-platform, mass participation ad service was crucial. This is how Facebook is so successful with their advertising, now with more than 500 million active users, all this information helps them create well targeted ads that they can sell to commercial partners. This links in with knowledge is power, and that controlling that data is key to making it profitable. The more users on Facebook = more people consume your ad = greater R.O.I.
Beyond the obvious threat of file sharing to established entertainment and software industries, the communities that are surround open source projects such as Linux are rising, previously they were less user-friendly, however they are changing this dramatically to great effect with Dell now pre-installing it on certain ranges of notebooks. This operating system gets improved with the more that is being developed for it, but is given away for free. This business model of voluntary work, perpetual beta, donations and free for non-corporate use does present a challenge to the two big market share holders in the market. Apple & Microsoft, a clear effect of this has been Googles open-source phone software Android which has hit the mobile phone market. And they need to do something other than protectionism of their software to defeat it.
Cloud Computing The use of a Web services such as Flickr or Google Docs to perform functions that were traditionally done with software installed on an individual computer. Flickr- users upload pictures to the ‘cloud’ for storage and to be viewed by other users to be tagged and viewed by the community Amazon have a service which allows users to upload their pictures to a secure server in a remote location, at a cost for safe keeping
Google docs- Users can upload and download documents via Google’s servers to be edited in-browser, replacing traditional desktop-based applications such as Microsoft Word Google scholar- Allows the community to browse a huge selection of book extracts in-browser Google Mail- allows users to access their e-mails in-browser without them being physically stored on a pc- e.g Microsoft Outlook Google maps allows users to view cmmunity updated, satallite imagery that can be accessed both in-browser and on smart phones
Twitter- a social cloud where users update news in a real time stream of information, which real time news updates for example can be easily spread.
Free to play games that use your browser, as opposed to downloading the software onto your computer- you can play anywhere.
BitTorrent and P2P file sharing uses Web 2.0 to share files between computers, with each user uploading a small chunk of a file and sharing it across the network.