• Billboard, Monday, June 4, 2007 11 AM

Widgets are on the verge of changing advertising as we know it. A spate of recent announcements by companies like Google and Facebook indicate that both see a big future in the development of third-party content for their Web sites. Widgets are mini pieces of software developed for Web sites, and in some cases, the desktop. They offer access to Web-based content and information without requiring that users visit a specific site.

What's so great about that? An embedded YouTube video on a social network program is the simplest form of a widget. For content makers, it adds all the necessary interactive advertising information without requiring that users click through to a new browser, opening whole worlds of branding possibilities. Want weather information from The Weather Channel? Add a widget. Want to put a movie trailer for your favorite movie on your site? Add a widget. As a service, users are more likely to interact with a brand.

They're also virally distributed among consumers. Jai Shen, co-founder and chief technology officer of widget developer RockYou, says widgets are like ringtones. Consumers have shown a willingness to pay more for a ringtone than an iTunes song because it's a form of self-expression. Widgets are an accessory that shows off what you are.

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