Lance from RockYou was on my panel at the WidgetSummit. Interesting that they are not just a widget distributor/creator but also the leading ad network for widgets. They claim an average CPM of $1 on in-widget ads, but my sense is that most buyers are other widgets, not necessarily mainstream advertisers.
They are doing CPI deals = “Cost Per Install.” Sounds like a good model considering that the main objective of advertisers is connection with end users.