• by Gavin O'Malley  @mp_gavin, June 10, 2008

White-label widget maker KickApps today is expected to announce a distribution deal with widget syndicator Clearspring Technologies. As such, Clearspring has agreed to promote KickApps' new WYSIWYG Widget Studio, a self-service widget-authoring environment, to the Clearspring user base.

Over the last two years, widgets have surged in popularity because--unlike pop-ups--their presence is controlled entirely by the users themselves and they are generally used to complement social networking and blogging experiences.

Indeed, according to comScore, nearly 148 million U.S. consumers, or 81% of Web users, viewed widgets in November of last year. Widget ads, meanwhile, are expected to boost social network advertising by 70% to $1.6 billion in 2008, according to a recent projection by eMarketer.

With the combination of WidgeADs, KickApps' format for widget advertising, and Clearspring's widget platform, the joint solution will attempt to provide an end-to-end solution for publishers and marketers to monetize widgets.

The new partnership will enable Clearspring customers to more easily build their own rich-media and interactive widgets, while KickApps will use Clearspring's distribution and tracking services to provide one-click distribution and analytics to KickApps Platform users.

"We're reducing the barriers to entry for publishers and Madison Ave. to begin monetizing widgets using WidgeADs," said Alex Blum, CEO of KickApps. "Our partnership with Clearspring brings together the core pieces that will define this new market opportunity."

Each with their own twist on the platform business, KickApps is one among an estimated 40 white-label social service providers--including ONEsite, Userplane, LiveWorld, SixApart, Ning, CrowdVine, Dave Networks, CollectiveX, Me.com, iBelong, and Haystack, to name a few.

Amid rapid consolidation in the space, rumors surfaced earlier that AOL is closely eyeing KickApps for a reported price of $90 million.

The Web software maker--which makes widgets for companies, which it helps them monetize--has so far raised $17 million in two rounds of venture capital financing, the most recent in August 2007.

KickApps clients include ABC Family, CW Television, Scripps Network Interactive, HBO, and Cinemax, to name a few.

Clearspring, meanwhile, recently raised $18 million in a third round of funding from New Enterprise Associates, Novak Biddle Venture Partners and other investors.

The McLean, Va.-based company also announced that New Enterprise Partner Harry Weller and Capital One co-founder Nigel Morris have joined former AOL heavyweights Ted Leonsis, Steve Case and Miles Gilburne on its board of directors. Clearspring has raised a total of $35 million in venture capital to date.

With the fresh cash infusion, the company plans to expand its widget advertising products and further develop its ad network that spans more than 80 social networking and other sites including MySpace, Facebook and Blogger.

Clearspring already tracks almost 4 billion widgets monthly, working with marketers that have included Honda, Snapple, Sprint, Disney, the NBA and Blockbuster. CEO Hooman Radfar said the company now wants to capitalize on the user data it has gathered since launching its platform in 2007 to increase efficiency and better target ads.

According to comScore's Widget Metrix report, Clearspring alone had 126 million unique widget views in March.

Aiming to capitalize on the widget boom, Clearspring faces competition from Google's Gadget Ads program, and a widget ad network recently launched by Gigya.