There's a nicely written piece on widgets and marketing in today's Adage:
...Branded widgets are the refrigerator magnets of the Brave New World. These compact, portable little software apps -- from video players to countdown clocks to makeup simulators -- are inexpensive to distribute, free to the user and (often enough) distinctly useful. At a minimum, they carry an ad message wherever they go.
That's at a minimum. At a maximum, the widget is something like the magical connection between marketers and consumers, not only replacing the one-way messaging long dominated by media advertising but vastly outperforming it. Because online the link is literal and direct, and along its path, data of behavior, preference and intention are left at every step. Oh, and your target consumers actually go out searching for your branded gimcrack. Oh, and they display it within easy reach. Oh, and they pass copies along to their friends and associates. Oh, and because they've been turned on by a friend, they are hospitable and receptive recipients. And, oh, in case this didn't quite register the first time I mentioned it, the barriers to entry are preposterously low. "The money is a joke," says Hillel Cooperman, ex-Microsoft big shot and founder of small Seattle software-development shop Jackson Fish Market. "It's a rounding error in the marketing business."

