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Summary:

For as long as I can remember, I have been highly skeptical of the concept of browser plug-ins as a business. Whenever I’d learn of a browser plug-in startup fetching millions of dollars in venture funding, I’d just shake my head. And while my skepticism hasn’t really gone away, I am beginning to view a select few of these players with fresh eyes.

For as long as I can remember, I have been highly skeptical of the concept of browser plug-ins as a business. Whenever I’d learn of a browser plug-in startup fetching millions of dollars in venture funding, I’d just shake my head. And while my skepticism hasn’t really gone away, I am beginning to view a select few of these players with fresh eyes.

What brought on this change of heart? A chance meeting with a senior executive at two-and-a-half-year-old Menlo Park, Calif.-based startup Cooliris, which has developed a software that can be added on to any popular browser on either Mac or Windows and essentially allows you to browse the web in 3-D. I have been using this plug-in for a few weeks now, and I have become a reluctant admirer, as it allows me to sift through copious amount of information — images and videos in particular — very quickly.

Cooliris (formerly known as PicLens) recently hired Shashi Seth, formerly chief of monetization at YouTube, as its chief revenue officer. Last week, he shared some interesting facts about the company. Among them:

  • Since launching the software back in January — and without spending a dime — Cooliris now has 2.4 million monthly active users, and continues to add between 30,000 and 50,000 new users every day.
  • An average active user spends at least 30 minutes using Cooliris to sift through information.
  • There are 9 billion pieces of content that have been shared by their users, and nearly 270 million pieces have been “interacted” with.

Outstanding numbers aside, can Cooliris make money? Seth thinks they can. Indeed, the company recently ran a test advertising campaign that resulted in a clickthrough rate of over 5 percent, a very high number considering that most online ad campaigns get clickthrough rates of less than 1 percent.

The early results have attracted a few advertisers, each of whom are willing to wage a few thousand dollars on the plug-in. And Seth was even more enthusiastic about a new kind of shopping cart Cooliris has developed for Amazon, which in a test led to a total bill of around $32 per cart. As this could be a way for the company to generate commissions, Cooliris is now planning to launch an extended version of that shopping system that would include several other online retailers, including Apple’s iTunes Store and Wal-Mart.

Admittedly, these are early days for Cooliris. But its test stats were intriguing enough that I was inspired to more closely examine the other browser plug-ins are installed on my Firefox browser that I use most often, just to see if there were some with similar utility, usage and potential as Cooliris.

Apart from Cooliris, my short list includes Digg, Adaptive Blue’s Blue Organizer and FoxMarks. While Digg is hardly a browser-based company, those four browser plug-ins all do the following:

  • They offer me something valuable as they try and make money off my surfing habits.
  • With the exception of Digg, the other three mask complex technology behind what seem like simple browser add-ons. Take for instance Foxmarks, which is essentially a simple tool that allows you to sync your browser bookmarks across multiple computers. All this information when harnessed and processed can be used to build a “better recommendation service” for web-based information.
  • Most importantly, they allow me to either save or organize information I gather on the web on a daily basis. And by doing so, they help me sift through tons of information very easily.

If browser plug-ins have these essential qualities, then maybe there’s a stand-alone business there after all. We’ll see.

Image courtesy of Cooliris.

This article also appeared on BusinessWeek.com.

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  1. Wow, I’m really surprised how well Cooliris is doing. The “extension” is pretty good.

  2. The most successful browser plug-in business that I can think of is Sidestep. It gained huge early distribution as a plug-in and then developed a popular website off the back of this service. Some could say it was too slow in migrating the plug in to a fully fledged website, but $200m ain’t bad. http://gigaom.com/2007/12/20/kayak-sidestep-merge/ .
    I think the trick is riding an early, cheap distribution opportunity and then evolving to control more of your own destiny and turning a feature into a company. If the browser plugins above can do this, then I think they’ll be some winners. Come to think of it, the same goes for all the facebook and iPhone apps out there. A few (but not many) will no doubt migrate to the web and become standalone businesses.

    Pete

  3. Trying to turn this:
    https://addons.mozilla.org/en-US/firefox/addon/8464

    Into a firefox plugin BUSINESS

  4. Om,

    I know you probably do not want to hear this but the best plug-in by far is AdBlock. Now, I see a lot of white space when I visit most media sites – including yours. Not to worry, I am still supporting GigaOm by attending the conferences. Cheers.

    —kris

  5. Markus Göbel’s Tech News Comments Sunday, September 28, 2008

    The most successful browser plugin is Adblock, although this might hurt business minded people.

  6. Its absolutely a viable business.

    The browser, as we know, is THE most used application on the desktop today. If applications within say a facebook environment have a shot (i.e. slide, rockyou), the browser plugins can be lot more powerful. The plugins which are apps within another app, they can take full advantage of the pc computing power and advantage of the fact that they are co-resident with the most used application. once installed and activated, the eyeballs will be there.

    the toolbar business for search providers have been a huge success.

    Yoono is another good example.

    Browsers like flock are taking plug-ins/addons to a whole new level as well.

    net – net will totally work.

  7. We in the IE and Chrome browser world rely on Ad Muncher from Australia, which does a fine job in my browsers for years, and has great support. The perfect platform-independent plugin still missing is a bookmark manager supporting all browsers, incl. Opera. And of course ad-block for mobile.

  8. I believe that browsers still lacks the tight integration requied to create a powerful applcation. Right now the most you can do to get some info, launch some application or at most stumple. We have some way to before we see browser as the centralized application of your desktop and that tiem it will give us a lot of integration opportunity.

  9. Om:

    I have been using Cooliris for the past 6 months now, and I absolutely LOVE this product. I find myself using it more and more. I wish they would allow me to surf HTML pages in this interface too, then I would spend all my time in this interface.

    Irene

    BTW, I really like the Ads in their interface. They are the best Ads on the web.

  10. TPile » Blog Archive » Monday Morning Links - Monday, September 29, 2008

    [...] starts tomorrow theregister.co.uk Ixia First to Offer 100 GE Testing Capability techwhack.com Can Browser Plug-ins Be a Business? [...]

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