Businesses Need To Monetize Web 2.0

An increasing variety of companies are seeing their business models change as communication services, information and entertainment content moves online.


For many telecom service providers and media companies, organizational survival is at stake, according to In-Stat’s new report, “Monetizing the Internet: Using Web 2.0 Business Models.”


Businesses must do more than just adding functions, such as links to social networking sites, Twitter messaging, chat rooms, and user comments/feedback. These function may help marketing and customer retention, they do not represent a Web 2.0 business model.


“Web 2.0 business models encompass an ecosystem of partnerships, designed to leverage both internal and external knowledge and assets,” says Keith Nissen, In-Stat analyst.


“End to end ownership of the entire business model is a dying breed. Telecom operators, media companies and others must modify their business models.”


In-Stat found the following:


78% of heavy Internet users regularly use two or more social networking sites.


Operators have a key opportunity to provide consumers a “Personal Information Center” (PIC) portal. For example, 66.6% of respondents are very or somewhat interested in aggregating access and sharing of personal images through a PIC.


Personalized content delivery and advertising is a key success factor. Currently, two-thirds of users never click on Internet ads.