• CNET News.com, Wednesday, December 19, 2007 11:15 AM

The proliferation of widgets, or embeddable software applications, was arguably the story of 2007. CNET reviews how widgets are changing the way people interact with the Web and what the innovation means for advertisers. Facebook really opened a can of worms in May when the company said it would let third parties develop programs specifically for its Web site. The innovation greatly enhanced the social networking giant's popularity, leading to similar vein announcements from rivals like MySpace, LinkedIn, Bebo, Google and even mobile carriers like Verizon Wireless.

Brand marketers are jumping on the widget-making bandwagon. The potential for these marketing doodads (games, trailers, interactive mini sites) lies in the viral nature of widgets. This week, Ford Motor Co. launched a new online campaign using widgets on AOL's sites, advertising a new in-car sound system. The campaign allow users to either download a free song or view a number of short clips, and of course, you can also grab the widget and embed it on other sites.

"This is an effective way for marketers to share their brand with influencers out there," said Peter Kim, president of Interpolls, which is hosting the ads.

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