Digg Ads profitable for social media site
Social media sites have generally found it hard to make money from traditional forms of online advertising. Which means they’re having to do things a little differently, playing to their strengths. Which is just what Digg is doing with its Digg Ads, a scheme that’s proving profitable for Kevin Rose and co.
Digg unveiled its new advertising platform last June. The idea was to integrate ads fully into the site, with paid-for promotions mixing in with the stories being voted up or down. And it’s worked.
GigaOM reports that Digg Ads are contributing 25 to 30 percent of the company’s revenue, which helped Digg double its revenue in 2009 and make it profitable for the first time. On average, Digg Ads see around a one percent click-through rate, with the Digg-style campaigns faring much better than more traditional campaigns.
Digg currently boasts around 40 million uniques every month but is hoping to build its audience – and consequently its advertising revenue – from a redesign in the near future.
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February 27th, 2010
Reddit is the same.
But they have CPC text.