phasetwo.org — This phrase must be on the tip of Digg CEO Jay Adelson's tongue. Why is Digg, certainly one of the hottest web properties going right now, being forced more often than not to fall back on Google's Adsense program to generate revenue? (and how many filler "house ads" Diggnation have you seen lately?)
Sep 11, 2006 View in Crawl 4
skunkman62Sep 12, 2006
"kevin, i'll happily crack the phones for you, holler!"that is teh ghey. just like kevin rose.
yeyuiSep 12, 2006
Why does a 'hot web property' have to make lots of money? Isn't enough to just make enough to keep the servers online and maintained, the employees payed? As people in teh know have pointed out, Digg is not losing money. In my opinion, that means they are doing well. Is there oportunity for a profit? I don't know, but I would feel betrayed and stop using the site if those controlling it decided that thier goal was to earn money rather than provide the service.
ahmedfSep 12, 2006
Err Jay - its from the BusinessWeek article and the further followups (started off with breaking even at 3 million/year, and then either you or Kevin stated that you guys were actually losing a bit).
mregusciSep 12, 2006
Digg is the best site on the web, and if any website deserves to be flouting in cash it is you!My career is business development and marketing and I know it makes no sense to point out an "opportunity" to better yourself without also providing possible solutions!Fact: Digg is the best site in the world (okay that is an opinion) with a massive dedicated following (that is a fact). Opportunity: Digg needs an effective way to convert the dedicated viewership into a lucratively consistent revenue source.Possible Solutions: 1. Provide an opt-in e-mail list: -- Send updates, e-mail stories that you think I might digg due to my history, knowing my digg history you will be able to sell direct adds to customers to target me in an opt-in e-mail with the stories you provide.2. Allow your dedicated viewership to "digg" ads: -- You have an amazing concept: USE IT!!!! -- Can you imagine how powerful your site would be to online advertisers if they were able to "try out" ads on your site before they spent a ton of money on a massive internet campaign? -- We, your viewers, could rate ads, comment on them and you would be able to provide that to your customers in "REAL TIME!!!" -- Benefit: I would love to tell advertisers their add is crap! I would also love to tell them that it is good. We, your viewers, are an amazing active potential resource, Use Us!3. I have more ideas but this is getting too long as it is. Lets stop bagging on Digg and give them IDEAS!Digg does not need FM it has us.
psychotronSep 12, 2006
Nobody puts this time and effort into something this complex for fun. Digg has to make money and they are entitled to it.
ccheathSep 12, 2006
there's whitelisting built into adblock and adblockplus BTW
spankaccountSep 13, 2006
Thats funny, I don't see any of the ads...
glennfSep 15, 2006
I'm a little baffled by Anson's post and some of the related material. Anson, you didn't check your facts, and didn't rely on well-known, publicly available information. Federated Media has grown quite rapidly, and has a dedicated sales staff. I signed up with Federated for my Wi-Fi Networking News site -- actually begged to be part of the federation, really -- nearly a year ago. I would love for the money to be better right now, but I love the process they're going through to make sure advertisers understand the value of my site and the others that they represent. I expected one to two years of work on FM's part to achieve the point where my site will be the kind of media buy I have hoped it would be and achieve the sort of revenue per page that makes my sites viable for me to devote most of my time to as a reporter and writer. (Right now, I devote about 20 to 30 percent of my time to it, the rest to print reporting and a combination of entrepreneurial stuff.)Their goal is to work to ratchet up the CPM (cost per thousand ad impressions) as the sites in the federation are able to prove to advertisers that we deliver the editorial oomphf to also provide the advertising punch. The ol' one-two. We, as writers and bloggers and such, don't have to think about this at all. FM does it for us. We just keep doing what we're doing. It takes time to prove out CPMs, it takes time to fill inventories. Agencies and advertisers move on a glacial timeframe, even in the Internet age.I expect that I could have made more money quicker by signing with a different group, hiring some part-time ad guy or gal, or more highly monetizing my pages. None of those seemed appealing. As it stands with the forecasts and deals that FM has kept me apprised of, I expect that averaging the first two years of working with them will be much higher than any other method I could have chosen because even if I'd achieved higher rates in early months, I don't see another model that produces ever-better CPMs. Even Google AdSense, which has been fine for me, suffers advertiser and surfer fatigue.
digitalbuddhaSep 15, 2006
I had a chance to hear Kevin speak at the Future of Web Apps in SF yesterday. With a million uniques a day, I'd say it's time to hold an auction. Who wants to serve up the contextual ads for the next few years? Google? Yahoo? Anyone else? Step right up and submit your bid. It's time to get off the "rate card" mentality.BTW, I appreciate what FM is doing but 40% is a helluva lot of margin to be giving up if you are a breakaway site like Digg.
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