AOL is on a quest to become a leader in the increasingly crowded widget advertising game. According to an Associated Press report, AOL will integrate technology from the newly acquired Goowy Media Inc. that will let advertisers put their ads on widgets that run on social networks like Facebook, MySpace and AOL's own Bebo.

Advertisers will be able to both purchase ads through AOL's Widgnet ad network and develop their own applications using the Goowy Media technology. The news comes just weeks after AOL announced guaranteed CPM revenue to developers who use AOL's Platform A technology to serve ads in their widgets.

It's nothing but good news for developers, who will share revenue from the Widgnet ad network with AOL. So far, third-party developers have had a hard time profiting from their widget work, and some have even called for social networks like Facebook to create application stores.