Word-of-mouth advertising is the defining element of Web 2.0 advertising. It's all about making new connections and expanding your internet presence via social networking.

Web 2.0 advertising through social networking gives you the much needed proximity to your clients, increases the frequency of social contact and changes the dynamics between you and your customers. It creates structured internet communities and puts like minded people in touch with others, where once it was impossible. Social networking, which is viral in nature, keeps the community growing and extends your reach indefinitely.

Social networking sites not only help people interact with each other but also allow them to share likes and dislikes, music and photos as well as video and TV clips. This provides businesses with a perfect platform to advertise and promote their products or services.

You can get a better feel for the market by getting to know more about your target audience including the kind of products or services they prefer. This in itself can save you loads of time, effort and money spent advertising to the wrong target audience