Digg's Money-Making Strategy

Two articles and a post at Digg’s blog this week all discuss the progress of Digg Ads, the Digg-able, bury-able ad units on Digg’s homepage.

Mashable describes the Digg Ads product better than I do:

“DiggAds is powered by a complex auction-based system that attempts to serve users with the highest quality ads — Digg assigns its own quality score to ads — while factoring in the advertiser’s bidding price. It’s like Google Adsense but with quality scoring. The idea is to reward high quality ads with lower CPCs; the more diggs an ad gets the less the advertiser pays.”

Bob Buch on Digg’s blog says:

“In the first four months, DiggAds has been extraordinarily successful for Digg. From a revenue perspective, things have been great — we view this as a positive sign that giving users control over the advertising they see is a good user experience.”

And Liz Gannes at GigaOM says:

“Social networking behavior — endless repetitive page views, unvetted content — isn’t a great fit for traditional forms of online advertising. Early attempts to bring search or brand ads onto sites like MySpace and Facebook had pathetic results compared the trajectories of the sites’ popularity and attention. But now, a few years in, social media companies are starting to discover how to advertise to their own audience. And in the last five months, Digg has figured out a model that makes sense. So much so that its new site-specific ad formats already account for more than a third of its revenue.”

(Liz interviewed me for the article.)

  1. # uberVU - social comments said: February 26th, 2010 at 7:13 pm

    Social comments and analytics for this post…

    This post was mentioned on Twitter by chasnote: Mashable, GigaOM stories on Digg Ads revenue, http://bit.ly/9DbmCN

  2. # L'argent de Digg stratégie de prise de said: March 17th, 2010 at 12:41 pm

    [...] Deux articles et un poste au blog de Digg cette semaine discuter de tous les progrès de Digg Ads ", le Digg-mesure, enterrez-les ensembles d'annonces en mesure sur la homepage de Digg. Mashable décrit le Digg annonces produit mieux que je fais:" DiggAds est alimenté par un complexe auction-système qui tente de servir les usagers avec les annonces de qualité les plus élevés – Digg cède ses [. . . ] URL article original: http://chasnote.com/2010/02/26/diggs-money-making-strategy/ [...]

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