The BANG Theory

There has been a lot of play lately about the data from emarketer about the size of the widget ad market:

So far, widgets and applications are garnering far more attention than actual ad dollars. Although consumers are increasingly using them, eMarketer estimates that US companies will spend only $40 million in 2008 to create, promote and distribute widgets, up from $15 million in 2007.

Sounds like nothing but that’s missing the point. Advertisers are clamoring for widget advertising but don’t know what to do with them. Widgets are viral…by their very nature…but companies are figuring out how to advertise on them and not screw up the scenery. And, site publishers see them as an opportunity to make some coin for their content but haven’t yet found a lot that is interesting. For those of you that haven’t read Gladwell’s The Tipping Point, it’s my take that you’ll soon see a real life case study open up before your eyes.