Digital: The wide world of widgets

Widgets are internet applications that can be downloaded to a desktop or placed on personal websites, blogs or profile pages. They have been around since the early days of the internet, in the form of calculators, world clocks and weather reports.

However, the rise of social networking sites has led to an explosion in the popularity of widgets among consumers keen to personalise their internet experience. This in turn is prompting advertisers to invest in using branded web applications to become part of the online conversation, rather than attempting to interrupt it with ads.

According to comScore, more than 43 million consumers in western Europe - almost 25 per cent of the population - regularly interact with widgets. One of the most popular is Facebook's FunWall, used by around 2.9 million consumers each day to upload pictures, videos and greetings cards. Facebook alone is home to 21,924 widgets, which are used more than 34 million times every 24 hours, according to analytics firm Andonomics.

Despite widgets' popularity, advertisers spent less than £8 million creating, promoting and distributing them last year, according to eMarketer. One reason is that branded web applications are incredibly cost-effective to produce. Brands pay only the development costs, sidestepping the need to buy media space by relying on users to distribute them virally.

There are various options available to advertisers keen to get involved in widget advertising. The most common involves investing in the creation of their own bespoke web applications. T-Mobile recently adopted this strategy with the launch of its MyFaves widget on Facebook, allowing users to morph up to five of their friends to discover what they would look like as one person. "This application promotes the MyFaves tariff while allowing users to have a bit of fun morphing their top five together," says Vanessa Potts, head of post-pay at T-Mobile.

Motorola is also planning to invest in branded widgets over the coming year. Andrew Morley, its vice president of marketing EMEA, says: "Our duty as marketers is to reward the time that consumers spend with our brand online with value added functionality, thereby creating a mutually beneficial value exchange."

Coca-Cola launched the first commercial widget for Joost, the global internet TV platform. The Coke Bubbles application allows consumers to personalise and share video clips from the service with their friends. "Widgets are a lot like bringing a dish over to a friend's dinner party," says Stafford Green, European group director of digital marketing at Coca-Cola. "You get invited in so you really should contribute something tasty to the meal."

For advertisers daunted by the prospect of creating their own widgets, it is possible to sponsor existing web applications. Widget developer RockYou! has sold sponsorships of popular Facebook applications to advertisers including Paramount Pictures and CBS News. Widget service companies such as ClearSpring also allow advertisers to buy banner ads within web applications.

A recent study by Universal McCann claims that to create successful widget campaigns, marketers must avoid gimmicks, use subtle branding and focus on adding value to the online experience. Branded web applications will achieve maximum reach only if they are spread across the internet virally by consumers, which means they need to be compelling.

Brian Dargan, head of planning at Digitas, which has created digital campaigns for P&G and Vauxhall, says: "Before jumping on the widget bandwagon, brands have to think carefully about what value their brand brings, its role in its customers' lives and where it should exist in the online universe. Otherwise, like 99 per cent of widgets, it will not be used."

WIDGETS AT WORK

Money talks Amazon.com recently launched Amazon Widgets, featuring products from the online retailer on blogs, websites and social network pages. Consumers using the widget will be allowed to take a 10 per cent commission from anyone who makes a purchase as a result of the widget.

4 OUT OF 5*

Egg-heads Cadbury created a widget on Bebo to promote its Creme Eggs in the run-up to Easter. The web application allows internet users to destroy or rebuild each other's Creme Eggs by performing virtual activities such as hugging or karate-chopping the eggs.

3 OUT OF 5

Behind the wheel BBC Worldwide launched a Top Gear widget allowing consumers to access the latest news updates from the car show's website. Users can either install the application on to their desktop or on to their favourite service such as Facebook, iGoogle and Windows Live to keep them up-to-date.

3 OUT OF 5

Horse trading Sony Pictures supported the launch of its adventure film Waterhorse - The Legend of the Deep with a series of widgets featuring movie trailers, banner ads and promotional games. Users can use the web application to personalise their blog or social networking site. 2 OUT OF 5.