Expect many more e-commerce ads on social networking widgets soon. Adgregate Markets, known for its ShopAds network, which lets customers purchase products directly from within banner ads, has purchased widget maker Gydget. Gydget is used mostly by bands to promote themselves on social networking sites (See an example on the left). Adgregate said in a statement that it would now immediately be able to distribute its ShopAds on the 200,000 widgets that Gydget has created.

Terms of the deal were not disclosed, although both companies have raised small rounds. Gydget raised a round of funding in November 2007 from SunBridge Partners and some angel investors. PEHub says that Adgregate has raised roughly $2 million. Gydget was founded by Gerardo Capiel, who is now the VP of product management at MySpace.

• Widget Maker Gydget Raises First Funding Round