The rapid development of Web2.0, leading to vicious competition users aesthetic fatigue

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The Web2.0 boom, which sprang up in 2005, was hot in 2006, with anxiety at 2007.

The essence, Web2.0 in essence did not create an updated profit model, still rely on clicks and traffic in exchange for advertising.

Look at Web2.0 's benchmark corporate YouTube, which does not even make a profit-making machine to find a better way to make money.

An unprecedented and powerful combination, google+youtube are so embarrassed, which reminds the industry to Web2.0 more calm, these Web application models are indeed exciting, but the profit is painful.

The rise of happiness, the annoyance of profit

Web2.0 with the continuous development of internet broadband and personalization, new applications are emerging. RSS (Automatic subscription), SNS (six degree space), tag (tag), Peer-to-peer (point-to-point)-these concepts have become the application of many network users.

Search, photos, music, video, mashup Applications (MASH-UPS), wikis (wikis), blogs, communities--together they form the rich content of the Web2.0 boom.

The core of Web2.0 is user-generated content. According to Bill Tancer, an analyst at market research firm Hitwise, 12% of all online activities for U.S. users are related to visits to Web2.0 sites, compared to 2% two years ago.

But so far, Web2.0 companies still lack a successful profit model. Web2.0 website 139.com CEO Han Yutong said that the current Web2.0 industry is confused, is last year the entire industry "chasing star" the normal results, many Web2.0 enterprises are not profit model, and lack of stable real service, so that consumers and investors disappointed is inevitable.

"In the Web2.0 site, only after the noise dispersed, good sites will survive." "Portal Blog website Blogbus CEO Shanyi that Web2.0 's soul lies in user experience and innovation breakthrough." The only thing that doesn't survive is a Web site that is purely imitation and totally copycat. Whether Web2.0, or Web1.0, or other Internet companies, if the lack of value of the soul, and no innovation breakthrough, the result will die.

As the video-sharing boom has surged, YouTube-like video-sharing sites in China have opened more than 500 in a year. After the social networking site MySpace was acquired by Mr Murdoch, more than dozens of copycat internet companies have sprung up in the country.

This situation exists both at home and abroad. This accelerates the vicious competition of Web2.0, which makes the users involved in Web2.0 feel "aesthetic fatigue".

Bill Tensell Statistics found that only 0.16% of all visitors to the video-sharing site YouTube visited the site to upload videos for others to watch; Similarly, only 0.2% of all visitors to the photo-sharing site Flickr visited the site to upload new images. The vast majority of Web2.0 users are not much different from those who watch TV on the couch all day, and prefer to watch rather than create.

It is not to be overlooked that, despite the low level of user participation, the number of visits to the Web2.0 Web site has increased by 668% over the past two years. Fereste, a renowned consulting firm (Forrester Research Inc.) The survey shows that the demand for Web2.0 technology continues to grow, but the Web2.0 technology is favored by big companies, the report said.

The Fereste market research company surveyed 119 CIOs and more than 500 company employees. The findings show that they have a strong demand for Web2.0 technologies, including blogs, wikis, podcasts, RSS, social networks, and content labels. At present, well-known software vendors such as IBM, Microsoft, SAP, Oracle and BEA system have started to integrate Web2.0 technology into their products, and the integration of products is more convenient for enterprises to use.

Fereste Market research company Analysis said that some smaller, more single business Web2.0 technology companies to seek greater development, should be with the larger companies to cooperate, because the current situation, the integration of the Web2.0 market will still be the trend.

Investment fever is still being sold as a major outlet

Global Web2.0 startups gained $844.4 million trillion in venture capital in 2006, up 108% from 406.2 million U.S. dollars in 2005, according to data from market research firm Venture One and the international accounting firm Ernst and New.

American Web2.0 start-ups remain the main target of risk investors, accounting for four-fifths of global Web2.0 corporate financing. Data show that a total of 126 Web2.0 companies in the United States to obtain venture capital, the total financing amount of 682.7 million U.S. dollars, a total of 20 companies in Europe to obtain venture capital, the total financing amount of 100.5 million U.S. dollars, a total of 21 companies in China to obtain venture capital, the total financing amount of 61.25 million U.S. dollars.

Stephen Harmston, Venture one global research director, said that although VCs still had a strong interest in Web2.0, the size of each deal was small.

He thinks that many people think Web2.0 into the bubble period, but from the data, this is not true. Web2.0 is still at the primary stage of development, with frequent investment activities but small scale. Venture One's survey shows that the average valuation of global Web2.0 companies is just 6 million dollars before they can get venture capital. By contrast, the average American start-up was valued at $18.5 million trillion in 2005.

Investment worries about Web2.0 are also emerging. According to Sadie consultant data statistics show that the second half of 2006 Web2.0 venture investment in the first half fell 30%. The latest figures released by the Financial Research Institute Dow Jones, Venture one and Ernst&young show that venture capitalists invested 455 million of billions of dollars in new Web2.0 companies in the three quarter 2006 years ago. However, no Web2.0 company has been listed for 2006 years, and only 4 companies have been bought. Meanwhile, several Web2.0 companies have shown signs of a recession.

"I think the grass roots of the internet are just beginning to show." Senior Internet source Wang Whinan that it is too early for Web2.0 to withdraw.

However, the ultimate goal of many Web2.0 startups is not to develop into a big company and eventually go public. Most Web2.0 companies hire only a handful of employees, hoping to become targets for big companies. The data showed a total of 167 Web2.0 transactions in 2006, up from 95 in 2005 and 35 in 2004.

Facebook's 22-Year-old founder Mark Zuckerberg, a social-networking site, sits on a Web2.0 gold mine, but could be broke if he misses a chance. Facebook is the second largest social networking site in the United States, with revenues expected to exceed $100 million trillion this year. Zuckerberg repeatedly rejected other companies ' requests for acquisitions last year, including Yahoo's 1 billion dollar offer.

Many Web2.0 entrepreneurs are faced with the choice of development or sale. Video sharing and social networking sites are particularly prominent. Many traditional media companies have made acquisitions to get involved in this high-growth sector.

Affected by this, Web2.0 company's price "rising." In 2005, News Corp bought the largest U.S. social networking site in myspace;2006 year at $580 million trillion, and Google bought the US's largest video-sharing site YouTube on a 1.65 billion dollar stock.

According to Thomson Financial and the American Venture Capital Association, emerging companies with VC backgrounds averaged $114 million in 2006, up 19% from 2005, to a record high since 2000. During the dotcom bubble, the figure had been as high as $337 million trillion.