Can Slide Balance User-Ad Seesaw?

NEW YORK 2007 is thought of as the “year of monetization” for the many Web 2.0 companies built on gee-whiz technology and vague ad-based business plans.

Whether that holds true for the makers of the tiny Web applications known as widgets remains to be seen. Widgets, which often appear on social networking sites, tend to feature mini slide shows, weather reports—anything that can be encapsulated in a small desktop window. For those companies making widgets, the trick is turning their impressive reach—comScore MediaMetrix estimates that they reach 21 percent of Web users worldwide—into a sustainable media business that doesn’t scare off their user bases.