Attack of the Advertising Widgets

Widgets are being turned into advertising delivery systems. Their nature – rich media applicatons that are easy to build, customize and add to a site – also make them an attractive way to add advertising to small sites. Google is now testing gadget ads, and we’ve written about services like boobox and AuctionAds (a sponsor) that easily ad affiliate advertising to a site via widgets. Last week eBay also launched “to go” widgets that let publishers embed ebay listings into websites, although for now there are no affiliate payments tied to those widgets.

Two more are coming this week. Tonight Silicon Valley-based Tumri is announcing a new product called Tumri Publisher, and Seattle’s Mpire will announce an advertising widget later this week.

Tumri Publisher, which is described here, allows users to create highly customizable widgets that promote specific products on their websites, in exchange for an affiliate or other fee. Tumri has twenty or so direct relationships with ecommerce sites like Overstock, Walmart, and others to promote their products. Most advertising pay on a purchase, although at least one partner pays a on each click to their website.

Tumri splits revenue from the advertising 50/50 with advertising, and they say they’ll pay up to 70% of proceeds to larger publishers.

The widgets are javascript powered; the company says Flash versions are coming soon.

Tumri was founded in 2004 and has raised $6.5 million in a Series A round of financing from Shasta Ventures and Accel. They are currently closing a second round. They have 31 employees (16 in India, 15 in Silicon Valley).