Collectively, Web 2.0 applications are commonly referred to as social media because they have moved the locus of control for mass communications from large organizations to individual users.

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This statement is true. Web 2.0 applications allow individual users to create, share and interact with content, which has led to a shift in power from large organizations to individuals in terms of mass communications. This shift has resulted in the term "social media" being commonly used to describe these types of applications.