Tuesday, October 23, 2007

Widgets: Online Advertising’s Newest Tactic

Widgets, a word formerly known only to economics professors and business students as the term used to describe any number of unnamed commodities, has taken on new meaning with its emergence into the digital world. Defined as “mini-Web applications (such as the New York Times Reader pictured at left) that are downloaded onto a desktop or transported into personal Web pages, blogs or social-network profiles,” widgets are quickly becoming integrated into marketing campaigns for financial services, automotive products, and consumer durables; even personal care companies are making inroads into widget marketing. Such widespread popularity has caught the attention of the marketing world, which is now leveraging the new technology to reach out to consumers via their most trusted sources of information: other consumers. Through effective use of this medium, marketers can engage with consumers, drive traffic to websites, and now, with the latest technology, measure the success of incorporating widgets into integrated marketing campaigns.

Widgets are fundamentally user-driven programs, meaning that consumers may choose whether or not to engage with them. As I have mentioned in earlier posts, this has its advantages and disadvantages. Fewer people may receive a message, but those who do are much more likely to be attentive and attuned because it stems from widgets they have taken the initiative to include on their own desktops or websites. As Chris Cunningham of Online Media Daily rather bluntly puts it, “That widget isn't there to pay the sales force; it's there because the person whose words or photos we're coming to see every day likes it.” The key to widget marketing is in maintaining a “practical extension of your brand a microcosm that delivers the same brand promise.” It must be a functional addition to a consumer’s online experience that underscores the key values that the sponsoring company holds while providing extra value. Otherwise, consumers will not make the effort to engage and the widget becomes just another failed advertisement.

When used appropriately however, a widget firmly ensconced on a consumer’s website or desktop can serve as a fantastic reminder ad, keeping a brand or product fresh in the consumer’s mind. Acura’s RDX Traffic widget (seen at right) is one such effective device. It provides real-time traffic updates directly to users' desktops in over thirty cities. The brilliance of this widget is that it is providing a valuable service that will be utilized often, so Acura will be kept in the forefront of the users’ minds, while at the same time it is improving brand image by underscoring the company's efficiency and reliability to (typically) younger, tech-savvy consumers. The next time an RDX Traffic widget user is in the market for a car, Acura will almost certainly be one of the brands that come first to mind.

Once the initial wave of adapters have embedded widgets into their websites, secondary adaptation can increase exponentially. In fact, YouTube, a popular video streaming site with content uploaded by users, owes its explosive success, in large part, to widget technology. According to Deepak Thomas and Vineet Buch of the Start-up Review, “YouTube allowed users to easily embed any hosted videos on web pages or blogs. This turned out to be particularly popular with social-networking websites, especially MySpace. The inbound links from these ‘widgets’ also helped YouTube increase its page rank on Google, thereby driving traffic via natural search.” In addition to natural search, hosted videos also directed interested consumers to the YouTube website, thereby increasing traffic in two ways through a single device installed by choice by consumers. Other companies attempting to dialogue with their consumers have an excellent opportunity to mimic YouTube’s success by encouraging widget sharing among consumer friend groups, first by creating a unique and useful widget, then by making it easy to download to other sites or 'click through' to the product homepage.

Despite such success stories, some companies have been reluctant to utilize widgets. However, recent technological developments in the area of tracking widget campaigns are making this viral and heretofore somewhat mysterious application a legitimate advertising medium. Marketers now have the ability to track views, usage, and uploads of their widgets and can use those data to extrapolate the effectiveness and contribution of widgets to their campaigns. This demystification of the proverbial advertising budget resonates well with C-suite executives. In fact according to Cunningham, “Widgets have rapidly earned a place at media strategy tables ... RFPs are now coming out that expressly include sections on 'Widget Brief' or 'Widget Strategy' ... Advertisers who have worked with widgets in the past are clearly putting a lot of resources into weaving them creatively and effectively into subsequent campaigns.” Hopefully those still on the fence will take note of this growing phenomenon and embrace the accountability it brings to the table. Anything that takes the guesswork out of promotional campaigns is worth at least one try!

1 comment:

GA said...

Your post brings up a very interesting and current topic in today’s online advertising world. I thoroughly enjoyed the progression of your post which led me from a broad perspective of the new use of widgets, how companies are using them, and concluding with the increasing usage of widgets as “a legitimate advertising medium”. Online advertising is growing rapidly and advertisers are continually finding ways to target consumers. I personally like the idea of widgets because consumers must decide whether or not it is worth downloading the application, and like you stated if, “consumers will not make the effort to engage the widget becomes just another failed advertisement.” This type of application will allow consumers to indirectly give feedback to advertisers of what they would and would not like to see. I really liked your use of examples like Acura and YouTube in your post because they help bring the widget application to life, and give readers a way to see some of the various widget products available to them. The Acura widget image is a little blurry, so it might be helpful to find a little bigger image so that your readers can view the widget more clearly. I might also add some additional statistical information about the success of these widgets and how many consumers are actually using them to strengthen your argument. Unfortunately, I did have trouble accessing some of the links because they required me to open up an account with MediaPost Applications. Although the account is free it may deter some readers from being able to refer to some of your sources. I also had trouble with accessing the hyperlink on the word “key”. Nonetheless, I did like how you referred your readers to “earlier posts” because it also brings attention to the other excellent blog posts you have recently written. I also liked the labels you utilized for your post because they overlap with your other labeled items demonstrating an overall theme for your blog. This is an insightful post and I look forward to reading it in the future.

 
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License.