Web 2.0 has revolutionized the way online advertising is happening. Now, instead of spending a large budget on blanket advertising techniques, advertisers can target specific audiences while cutting costs, connecting with customers and improving the chances of getting a sale.

Pay per click (PPC) remains one of the most effective—time and cost wise—ways of advertising on the internet. Your best option is still Google Adwords. How does Adwords relate to Web 2.0? With Adwords, you can target specific sites where your ads will run. All you have to do is research which social networking sites or blogs you want your ads to run on. Many major blogs and social networking sites syndicate Adwords ads. Just make sure you target the right audience.

Another technique is creating ad interactivity. Web 2.0 advertisers are thinking up clever ways to engage visitors with ad content. It might be a quiz or a survey after which a visitor is offered an incentive to download.

There are also new advertising opportunities emerging on social networking websites like FaceBook. On FaceBook you can buy traditional banner ads that will be placed at the top of pages. Also, you can buy flyers that can be targeted at a particular university, company or group. These are a great way of targeting a specific audience and can be bought for as little as $5 per flyer.