• by Gavin O'Malley  @mp_gavin, July 12, 2007

As opt-in distribution networks popular among young consumers, widgets are on the rise, according to the analysts and agency types who gathered Wednesday in New York for the first WidgetCon.

"This space is just showing some incredible month-over-month growth," said Linda Boland Abraham, executive vice president, comScore. "If I were a widget maker, I'd be touting the young demographic that widgets are reaching."

In North America, more than 81 million consumers--or a full 40.3% of all online consumers--were exposed to Web widgets in April, according to a widget tracking service recently launched by comScore. For now, its Widget Metrix service only tracks widgets--mainly photo and video-streaming players--that can be embedded on Web pages like blogs and social networking pages, rather than desktop widgets. (Notably, it is not tracking YouTube's video players.)

"Widgets are about establishing a relationship with the consumer, and bringing the Web directly to them," explained Hooman Radfar, founder of widget maker/syndicator Clearspring Technologies.

Using Clearspring, Radfar claimed to have increased viewership to a major media property by 50% in six months. (The NBA and Universal Pictures have been Clearspring clients since November, and the company struck a deal with NBC Universal to carry the network's content last month.)

What's more, widgets are on the cusp of a major boost in adoption, according to Ed Anuff, co-founder and CEO of Widgetbox, a widget syndicator that just completed a major distribution deal with Forbes.com. The boom is being driven by what he estimates are some 100 million middle-aged consumers just now discovering the utility of widgets on their home pages.

"Home pages will be the next big shoe to drop," Anuff said.

Also on hand Wednesday was Eyal Gever, co-founder and CEO of technology startup Gizmoz, which just launched a major promotional deal with MTV and Taco Bell (part of Yum Brands!).

Gizmoz lets users upload personal photos to its service, which are then turned into Jib-Jab like avatars that can be distributed throughout the Web via widgets. MTV is using the technology to promote the upcoming MTV Music Awards on Sept. 9.

Demonstrating other uses for Gizmoz technology, Gever showed an action movie clip in which the star character's face was replaced with his personalized avatar's face--the marketing implications of which were obvious. It was, he said, "the mother of all mash-ups."

Something for any widget maker to consider is its relationship with the major platforms like MySpace, Facebook, and iGoogle. That's because these sites presently have a monopoly on the personal pages within which consumers embed widgets. The platforms can therefore dictate the terms of relationships with particular widget makers.

But, while WidgetBox's Anuff acknowledged the major platforms' strategic edge, he said there is room for compromise. "They've indicated that they are willing to work with us," Anuff said.