Although some widgets are simple icons, graphics, or links to a YouTube video, others have a great potential as advertising portals on blogs, social networking sites, and personal Web pages.  Widget advertising allows users to become Internet distributors, highlighting their favorite products, services, or Web sites and linking accordingly. 

Recently, the number two social networking site Facebook opened its users’ profiles to widgets with overwhelming success.  Nevertheless, many advertisers and Web sites have yet to fully comprehend the potential of widgets.  Myspace, for example, does not allow widget integration on its pages, which has proved problematic in light of its competitor’s success.

Many developers, including Clearspring Technologies, RockYou.com, and Gizmoz, have formed a widget marketing association to spread the word about widgets and also define their standards of use. 

Combating falling print revenue and looking to increase online advertisers, newspaper companies, such as Gannett, could reap benefits from following the widget trend with their Web sites.  Widgets have the potential to profoundly affect the Internet, including a shift away from Web portals and search engines. If the industry embraces the widget revolution, the Internet may soon see more interactive and profitable advertising on newspaper websites or linking widgets sharing the latest headlines on a personal blog.

Source: Business week here and here through Paid Content