Adware 2.0 Finds a Distribution Channel

Years ago adware was distributed primarily in two forms.

Adware vendors sought out mainstream software vendors to distribute their programs in bundling arrangements. The Adware makers often used a pay-per-install model, paying as much as $1 or more to those responsible for the installation of the ad-delivering components. Often users could opt out of the adware installation.

Malware authors abused the pay-per-install model, silently installing adware via drive-by-download exploits, or instructing already infected computers (bots) to install the adware.

The end of an era
Adware maker Direct Revenue profited from questionable business practices that ultimately resulted in a $1.5 million settlement with the FTC. That settlement included a ban on using affiliates that engage in drive-by downloads and other questionable practices. Shortly thereafter Direct Revenue closed shop; the then adware king was dethroned.
Rebirth
Over time other adware vendors closed, including 180Solutions/Zango/Hotbar and Claria.
The programs created by some of these entities were resurrected by Pinball Corp., which acquired Zango’s assets in 2009.
Recently Pinball began engaging in a reverse bundling of sorts. Rather than partnering with commercial vendors looking to participate in ad-supported software, Pinball is going after open source products, but with a twist. Historically users would run an installer for KaZaa, for example, and adware might be bundled within. Pinball is bundling open-source applications such as VLC, Vuze, and Audacity with their adware, such as Hotbar. One example is (continue reading...)