Web 2.0 refers to new online trends that allow two-way communication and collective intelligence, such as social networking and viral marketing. Businesses can benefit from Web 2.0 by using tools like company blogs, which allow them to communicate directly with customers and increase their search engine rankings. Research shows that blog readers are more likely to purchase products online and spend more than non-blog readers. Company blogs have also shown benefits like building communities, gathering customer feedback, and boosting sales within the first month of starting a blog.