JUL. 31 2:56 P.M. ET Some questions and answers about Claria Corp.'s new strategy:
Q. Are pop-up ads going away entirely?
A. No, but Claria says it is scaling back that business and might one day eliminate pop-ups entirely.
Scott Eagle, Claria's director of marketing, says the company has been winding down bundling deals with makers of free software. It recently terminated a deal with Sharman Networks Ltd., makers of the file-sharing software Kazaa. (Sharman officials, though, claim unrelated disputes were involved but refused to elaborate.)
Nonetheless, other distribution deals have yet to expire, and Claria still makes the pop-up-producing software available when downloading its eWallet password-management software.
Q. How will Claria software get distributed now?
A. Claria's software is on some 40 million desktops, but keeping it there is a challenge given anti-spyware programs that identify such software as threats. Since the company's founding in 1998, four times as many copies have been removed or rendered inactive as people get new computers.
To get on more desktops, Claria figures it needs to partner with developers of toolbars and instant-messaging programs as well as with reputable Web sites. But the company has encountered resistance because of the pop-ups, Eagle said.
Claria is thus developing separate software completely free of the pop-up functionality that will enable targeted ads based on users' surfing habits. Claria has yet to finish writing that software, but once it does, it hopes to begin signing distribution deals. A test version is expected later this month.
Q. Are rival adware companies going to follow Claria in moving away from pop-ups?
A. Yes and no. One rival, WhenU.com Inc., isn't scaling back its pop-up ad business, and Chief Executive Bill Day believes pop-ups remain viable if done right. But Day acknowledged plans to expand into traditional ads in the next six months, also using behavioral-targeting technology. He wouldn't provide details.
Q. What's all this talk about Claria? I thought the company is Gator.
A. The company changed its name in 2003 as criticism of its practices mounted. The company claimed the name change was a response to it having significantly broadened its portfolio. The original product, eWallet, continues to bear the Gator name.
Q&A On Claria's New Stragegy