The bursting of the dot-com bubble in the fall of 2001 marked a turning point for the web. Many people concluded that the web was overhyped, when in fact bubbles and consequent shakeouts appear to be a common feature of all technological revolutions. Shakeouts typically mark the point at which an ascendant technology is ready to take its place at center stage. The pretenders are given the bum’s rush, the real success stories show their strength, and there begins to be an understanding of what separates one from the other.
The concept of “Web 2.0″ began with a conference brainstorming session between O’Reilly and MediaLive International. Dale Dougherty, web pioneer and O’Reilly VP, noted that far from having “crashed”, the web was more important than ever, with exciting new applications and sites popping up with surprising regularity. What’s more, the companies that had survived the collapse seemed to have some things in common. Could it be that the dot-com collapse marked some kind of turning point for the web, such that a call to action such as “Web 2.0″ might make sense? We agreed that it did, and so the Web 2.0 Conference was born.
In the year and a half since, the term “Web 2.0″ has clearly taken hold, with more than 9.5 million citations in Google. But there’s still a huge amount of disagreement about just what Web 2.0 means, with some people decrying it as a meaningless marketing buzzword, and others accepting it as the new conventional wisdom.
This article is an attempt to clarify just what we mean by Web 2.0.
In our initial brainstorming, we formulated our sense of Web 2.0 by example:
| Web 1.0 |
|
Web 2.0 |
| DoubleClick |
–> |
Google AdSense |
| Ofoto |
–> |
Flickr |
| Akamai |
–> |
BitTorrent |
| mp3.com |
–> |
Napster |
| Britannica Online |
–> |
Wikipedia |
| personal websites |
–> |
blogging |
| evite |
–> |
upcoming.org and EVDB |
| domain name speculation |
–> |
search engine optimization |
| page views |
–> |
cost per click |
| screen scraping |
–> |
web services |
| publishing |
–> |
participation |
| content management systems |
–> |
wikis |
| directories (taxonomy) |
–> |
tagging (”folksonomy”) |
| stickiness |
–> |
syndication |
The list went on and on. But what was it that made us identify one application or approach as “Web 1.0″ and another as “Web 2.0″? (The question is particularly urgent because the Web 2.0 meme has become so widespread that companies are now pasting it on as a marketing buzzword, with no real understanding of just what it means. The question is particularly difficult because many of those buzzword-addicted startups are definitely not Web 2.0, while some of the applications we identified as Web 2.0, like Napster and BitTorrent, are not even properly web applications!) We began trying to tease out the principles that are demonstrated in one way or another by the success stories of web 1.0 and by the most interesting of the new applications.
Like many important concepts, Web 2.0 doesn’t have a hard boundary, but rather, a gravitational core. You can visualize Web 2.0 as a set of principles and practices that tie together a veritable solar system of sites that demonstrate some or all of those principles, at a varying distance from that core.

DoubleClick vs. Overture and AdSense
Like Google, DoubleClick is a true child of the internet era. It harnesses software as a service, has a core competency in data management, and, as noted above, was a pioneer in web services long before web services even had a name. However, DoubleClick was ultimately limited by its business model. It bought into the ’90s notion that the web was about publishing, not participation; that advertisers, not consumers, ought to call the shots; that size mattered, and that the internet was increasingly being dominated by the top websites as measured by MediaMetrix and other web ad scoring companies.
As a result, DoubleClick proudly cites on its website “over 2000 successful implementations” of its software. Yahoo! Search Marketing (formerly Overture) and Google AdSense, by contrast, already serve hundreds of thousands of advertisers apiece.
Overture and Google’s success came from an understanding of what Chris Anderson refers to as “the long tail,” the collective power of the small sites that make up the bulk of the web’s content. DoubleClick’s offerings require a formal sales contract, limiting their market to the few thousand largest websites. Overture and Google figured out how to enable ad placement on virtually any web page. What’s more, they eschewed publisher/ad-agency friendly advertising formats such as banner ads and popups in favor of minimally intrusive, context-sensitive, consumer-friendly text advertising.
The Web 2.0 lesson: leverage customer-self service and algorithmic data management to reach out to the entire web, to the edges and not just the center, to the long tail and not just the head.
Akamai vs. BitTorrent
Like DoubleClick, Akamai is optimized to do business with the head, not the tail, with the center, not the edges. While it serves the benefit of the individuals at the edge of the web by smoothing their access to the high-demand sites at the center, it collects its revenue from those central sites.
BitTorrent, like other pioneers in the P2P movement, takes a radical approach to internet decentralization. Every client is also a server; files are broken up into fragments that can be served from multiple locations, transparently harnessing the network of downloaders to provide both bandwidth and data to other users. The more popular the file, in fact, the faster it can be served, as there are more users providing bandwidth and fragments of the complete file.
BitTorrent thus demonstrates a key Web 2.0 principle: the service automatically gets better the more people use it. While Akamai must add servers to improve service, every BitTorrent consumer brings his own resources to the party. There’s an implicit “architecture of participation”, a built-in ethic of cooperation, in which the service acts primarily as an intelligent broker, connecting the edges to each other and harnessing the power of the users themselves.