The auto industry, once a top ad-spending vertical, had the steepest year-over-year drop of any of the top 10 industries during the first half of 2008. Despite this overall drop, online ad spending by automakers is still expected to increase. Rather than spend this money on a mass marketing strategy, advertisers must break through the clutter and build relationships with consumers. Widgets are just one way to start 1:1 conversations in the digital space.

It appears that not many auto manufacturers have built and tested widgets yet, possibly due to: 1) Fear of the unknown; 2) Not knowing exactly what to do with them.

Upfront education about the different types of widgets is a crucial step in the planning process. Web widgets live throughout various web pages, such as blogs and browser start pages; desktop widgets live on users’ desktops and tend to be utility-focused. Applications, such as the ones sprinkled throughout Facebook, are also considered widgets. Because they are built for specific platforms, consumers have come to expect options for customization as well as unique and interesting content. Setting clear metrics and objectives, no matter what type of widget is deployed, will provide guidance and help marketers fit them into their overall goals.

By examining existing automotive widgets, it is easy to see very different approaches in the space – features range from mini-games to content feeds to vehicle service information. Brand personality and voice will ultimately shape how playful or serious the widget should be, but today’s economy may push all manufacturers to focus on utility (and value) for their consumers. Below are different options for reaching consumers in a very fragmented digital space.

Incorporate virality
There’s no question that everyone is looking for a free viral impression these days. Funny videos, interesting blog posts and digital photos can be passed around with a few simple clicks. Widgets are often purchased on a cost-per-install model, meaning the advertiser only pays when someone downloads it from a media source, such as a banner or brand site. Viral or pass-along impressions after that are non-paid.

Honda Pilot’s “Readysodes” widget features a video that can be viewed and then customized on the site’s landing page. Rather than having a strong share or “Send to a Friend” call out, they wanted users to place the widget directly onto their pages. Without this simple email or send button, it may be difficult for them to gain the viral traction that most widgets are intended to have.

Partner with content providers
When discussing widgets, especially those with extensive content, there is always an inevitable question: Who’s going to update this stuff? The short answer: Someone else can. By partnering with third-party content providers, auto brands can focus on other areas, such as the overall design of the widget or product information.

Toyota Corolla’s widget, “The Help,” functions like your own Web-based help desk. This widget has options for desktop downloads, which is ideal, given the amount of utility, as well as quick posts to social sites such as Facebook, Blogger and Hi5. The Chef tab pulls feeds from Epicurious.com while the Chauffeur can help you find your way with Yahoo! Maps. The Pilot, Publicist and Broker tabs are populated with information from Orbitz, People and TheStreet.com. By partnering with these publishers, Toyota has most likely saved a lot of time on resourcing and can keep the widget refreshed with real-time updates. Surprisingly, Toyota chose to exclude any company or product information, but it could be more appealing to customers who want to use it without feeling like they are being advertised to when they view their start page or desktop.

The My Ford Service Widget reminds Ford owners to perform various maintenance tasks and promotes special offers from the company.

Target your current customer
Given the current state of the economy, brand marketers should strive to create and maintain meaningful relationships with their consumers. Widgets can provide customer service outside of the normal channels (in-person, over the phone) and become a part of the consumer’s everyday tasks. The Ford Service widget, listed on Yahoo! Widgets, is a simple tool for current Ford vehicle owners. It features maintenance reminders, recall alerts and special offers. Because it was built to live on desktops, it does not have any social functionality. At a very basic level, it could be useful to have a small network of people set their own preferences, especially within the same household (surely there are some households with His and Hers Fords out there … ).

Don’t be afraid to entertain
Entertainment may be a tougher sell these days, but auto manufacturers can appeal to audience segments that want to have a little fun during their day. Widgets are a great way to get snack-sized gaming experiences without having to visit a specific destination site.

The FJ Cruiser Mini Bulletin widget by Toyota features a news tab with stories influenced by the product and brand, but the Dirt Demons racing game is the real highlight. Vehicle and track options are presented before the race begins, and all movement is controlled by the keyboard arrows. Users can log in to save their time and everything is then posted to a Best Times list.

Whether they are useful or purely entertaining, widgets give people another way to interact with brands. They should be supported with other media, cross-promoted within existing channels (e.g. email newsletters) and incorporated into broader marketing strategies. With so many choices across social networking sites, start pages and content destinations, being a stand-out player in the space may just mean being a valuable partner in a consumer’s life.

Related links:

• Honda Pilot Readysodes; Gigya Widgets
• Corolla “The Help”; Gigya Widgets
• FJ Mini Bulletin Widget; Gigya Widgets
• My Ford Service Widget; Yahoo! Widgets

Image credits:
Honda Readysodes, Corolla “The Help” and FJ Mini Bulletin Widget images appear courtesy of Gigya Widgets; My Ford Service Widget image appears courtesy of Yahoo! Widgets