Rapid growth predicted in Web 2.0

There will be rapid growth in the amount firms spend on Web 2.0 tactics such as blogging and social networking, a new report has claimed.

A study conducted by Forrester Research has forecast that the amount spent over the next five years will see annual budgets reach $5 billion (£2.3 billion) by 2013.

More than half of the businesses surveyed by the research firm reported that Web 2.0 is to be a priority for the future of their marketing efforts.

This is because the medium is seen as a new way to build relationships with clients and prospective customers and to use their employee skills.

Despite predicting such extensive growth, Forrester reports that there is currently relatively low spending within the sector and Web 2.0 marketing is in its infancy.

However, analyst G Oliver Young commented: "In the long run, the effect of Web 2.0 will be enormous."

Recently, Reggie Bradford, chief executive officer of social marketing firm Vitrue, told Adotas that marketers must resist the temptation to treat social media as a fad and integrate it into their long-term marketing mix.