—For Widgets, VC Money Easy, Revenues Not So Much - GigaOMI think there in lies the bigger problem with the widget sector as a whole: no one seems to have come up with a business model that makes sense. The widgets have become too successful, and have created too much inventory that keeps growing but doesn’t perform as well, forcing advertisers to re-adujust their efforts. Yet you have companies like Sprout getting funded, which tells me that there is a mismatch between market reality and VC expectations and lack of understanding of this sector.
The big opportunity is in analytics that lead to a better widget advertising system does a great job of behavioral targeting. The other opportunity is in developing new kind of ad formats that can be scaled.