BREAKING NEWS & VIEWS

Spiceworks Brings Branded Apps to b2b
Monday, June 8, 2009

Branded applications are all the rage on the iPhone and Facebook. The format makes sense on paper. Instead of piggybacking their standard message on media with increasingly invisible banner campaigns, a sponsor creates a widget that performs for users a valuable function or just provides some fleeting entertainment. Even if users keep the app on their blog or social network site for a short while, the sponsor gets a degree of exposure direct to the consumer that no banner campaign can buy. The model has obvious appeal to consumer content publishers and their sponsors, but is there an opening here for b2b publishers as well?

Ad-supported business application provider Spriceworks is trying to carve out such a model for b2b branded apps with charter sponsors Microsoft, TrendMicro and CDW. “We work with them to create self-contained applications they can plug into the Spiceworks interface to perform functions for users,” says Jay Hallberg, VP of marketing and co-founder. Spiceworks is free network monitoring software that boasts 700,000 users among IT professionals. The software is maintained via advertising and marketing served into the interface to a highly targeted audience. In this new program, the company builds apps like a widget for Microsoft that lets IT managers manage their software licenses and for LiveOffice to achive email throughout the company. For tech retailer CDW an app helps users manage their purchase lists.

“We find these tech companies are getting excited because they can solve a daily business problem in the workflow and instantaneously reach an audience of 700,000 IT professionals around the world,” says Hallberg. In fact, one of the appeals of sponsored on-site widgets is that the audience has already been harvested by the content producer. Even as branded applications have become popular in theory, the biggest weakness in the model is distribution. As widget networks, social networks and application marketplaces become cluttered with too many options, it is nigh impossible for the right targeted users to find the right sponsored application without a costly media campaign to direct them.

By focusing a select group of branded apps on a well-targeted b2b audience, publishers like Spiceworks have the opportunity to deliver a widget/app format to sponsors that overcomes distribution woes. For example, security software company TrendMicro saw limited usage of its virus threat alert widget on the general social networks. Within the more tightly targeted and less cluttered environment of the Spiceworks software, it may have a better chance of reaching its target more efficiently. Spiceworks can leverage its own banner ad network as well as email and contextual ads.

Hallberg says that Spiceworks is testing the program with four initial sponsors to glean best practices. Pricing varies and generally is part of larger marketing budgets, he says.


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