They worked on integrating their “social voting” mechanism into sponsored ad placement to provide sponsors and users with a better advertising experience. The users can digg specific ads allowing them to travel up the flow of diggs. Each ad’s cost-per-click is adjusted based upon its number of diggs—higher cost for lesser (buried) diggs. The idea is to encourage advertisers to create ads that are worthwhile to the user, if the ad gets buried, it gets expensive, urging the sponsor to pull the ad down.
Maser boasted that the new platform proved effective, “so far we’ve already tripled our revenue forecast from this initiative.” An Intel sponsored blog earned a 2.2 percent click-through-rate, others earning close to 3 percent, compared with the average regular display ad on Digg earning about .08 percent.
Have you noticed the ads? Have you clicked on any, or Dugg any? Considering the web will likely always have ad sponsorship, what do you think of the new model?
Online display ads account for around a third of the $40 billion online ad market. Advertisers mainly commission display ads to apprise internet users of their presence and not necessarily in the hope of immediate results. But click-through rates for display advertising have slumped to such abject levels that it is just too optimistic to expect immediate results with banner ads.