Digital Marketing and Technological Insight

The monetization of any “Web 2.0″ website is a hot topic, regardless of how much traffic and/or buzz they have. At some point you have to make money, not just spend it. Digg, the leader in social bookmarking, announced yesterday their plans to further monetize their traffic by incorporating ads into the main Digg “river” that users can either Digg or Bury. How users react to the advertisement will determine how much the advertiser will end up paying.

Today, we’re announcing our plans to roll out a new advertising platform — Digg Ads. Digg Ads will give you more control over which advertisements are displayed on Digg. The more an ad is Dugg, the less the advertiser will have to pay. Conversely the more an ad is buried, the more the advertiser is charged, pricing it out of the system.

You can see what Digg Ads might look like here.

From a users perspective I like the concept of Digg Ads, of course having no ads would be ideal but Digg has a right to make money. However, having the ability to control what I want and don’t want to see makes the idea of integrated ads somewhat bearable. From an advertisers perspective I absolutely hate Digg Ads. First I cant imagine many ads will actually get Dugg very often, the majority of people will choose to bury ads - especially in the beginning. On top of that, not having a clear understanding of end cost isn’t appealing at all.

The concept of Digg Ads will surely  interest some advertisers enough to run a few tests. But, since there is no shortage of  high-traffic sites that target the same demographic , don’t expect Digg Ads to stay up for very long if it doesn’t catch on.