Most internet marketers have a certain set of tools in their arsenal to research niches to work in and ideally make money from as part of their online business. These tools typically include keyword research tools such as WordTracker, Overture and a multitude of other variations of what is effectively the same tool.

People may also use forums, groups and even offline methods to uncover markets they may have never thought about or that simply seem popular or profitable.

However, these tools and methods are quickly becoming outdated. Not because they don't work, but because they can often be counter-productive. The secret lies in looking elsewhere for your market research.

Why so?

1. Search Engines are not everything to everyone

Since the dawn of Web 2.0 (interactive community driven websites) the landscape by which we find markets has exploded. There is a big misconception that people only use search engines to find what they are looking for.

Sure, many people do use search engines but when you look at the popularity of websites such as YouTube, MySpace and various other Web 2.0 sites, it is clear to see that they are overtaking some of the most popular search engines in terms of daily users. This means that people already know where they want to be, so they don't use a search engine to get there.

After all, if you knew the address of your friends' new house and how to get there, would you still call them up ask for directions?

So what does this mean to you as a marketer? It means that thousands if not millions of people are bypassing the old fashioned way of typing keywords into the search engines. Therefore, your standard tools to research these keywords people are typing into the search engines are becoming less effective - if people are not entering the keywords into the search engines in the first place, they are effectively going under the radar. Sure, they may still be looking for certain things, but you are unable to track what these certain things actually are.

2. Keywords are inconclusive

Many people form their entire marketing campaigns around keywords. Although analysing keywords can identify demand for certain products and information online, there is a fine line between picking keywords that are effective and keywords that are utterly useless. It's a long process to master keyword research and can be potentially disastrous if you use poor keywords - particularly if you are spending money advertising on such keywords using Google Adwords for example.

Although keywords are quite often hit and miss, there is still a need for keyword research tools in your niche market research. However, it all depends on which stage you employ such tools. Certainly to get ahead of the fierce competition these days, using standard tools is simply becoming weaker and more and more competitive each day.

In order for internet marketers to survive the new millennium of internet marketing and not get caught behind, it is essential that Web 2.0 is embraced and fully incorporated into all of our marketing efforts.

In terms of finding niches and general market research, the Web 2.0 phenomenon could be the most important vehicle in your daily niche marketing ventures.