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Web 2.0 May be ‘Recession Proof’ — Here’s Why

by Joe McKendrick

A couple of weeks back, I ran a couple of posts (here and here) that talked about how social networking and Web 2.0 technologies may make things different for people in the next economic downturn — be it this year or some other time in the future. New technologies and online services may help empower people to forge through lean times with new opportunities, versus becoming victims of the economy — as has been the case in times gone by.

Rob Paterson just posted this account of a Yahoo employee who was Twittering his way out the door after being laid off. What better way to communicate your situation — and availability for new opportunities — to the world? Truly astounding, and an incredible , empowering resource. That dude probably won’t be spending too much time on the unemployment rolls.

Forrester’s Josh Bernoff has weighed in with some of his thoughts on how Web 2.0 would prevail through a down economy. “Things are different this time,” he opines. For example, we won’t a repeat of the devastation of the 2001 recession, because this is “not a tech bubble” as it was in 2000-2001. “Technology spending is not irrational,” he points out. Agreed.

Josh adds that social networking platforms will flourish in a down economy, however. While advertising may get cut, marketers will see greater value in blogs and social networks. And the best part is that social applications “can be nearly free (think blogs, Ning.com, facebook pages) and even more sophisticated communities are typically $30K to $200K — a lot cheaper than a significant sized ad campaign.” Plus, being all digital and all, social network-based responses are extremely measurable.

So the social networking platforms will do just fine in the event the economy were to go south for a while — and in fact, may even receive a boost from companies seeking inexpensive channels to their customers. And, as I mentioned previously, end users will have that power in their hands as well.

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