What is Digg?69 Comments
- Bob042, on 10/12/2007, -0/+46As much as I hate MySpace, I wish I had a website with a giant collectively idiotic user base sometimes.
- mek2600, on 10/12/2007, -2/+44Kinda like the one Kevin Rose has?
- rauz, on 10/12/2007, -1/+38All that money goes straight into the account their programmers and server technicians use to fund their crack smoking habit.
- ifonly, on 10/12/2007, -0/+35Perhaps with that money they could hire a decent designer!
- Ujjay, on 10/12/2007, -1/+29Catch the myspace monkey and win 25 MILLION DOLLARS!!11
The fact that they make their money from scams like those makes me wonder how much the companies are really making, taking your credit card information. - ifonly, on 10/12/2007, -0/+23No?!?!?
- edzieba, on 10/12/2007, -1/+21Yes. I'd spend it all on bandwidth.
- AndrewNorris, on 10/12/2007, -0/+18Myspace is the bane of American youth.
- phlux, on 10/12/2007, -0/+14This has been known for a long time. I have written about it before as well. The thing to remember is the myspace deal with google. Google agreed to pay myspace 900 million over 3 years to supply ads to their users.
900 /3 /12 = 25M
The open question was if google was exclusive provider or not.
So if they are making 25M off google alone - but making 30M/mo it measn that they make 5M per month off other ad partnerdships.
Also using the 30M and the number of users that is known on the site we can easily determine their CPM values... (we will need to make some assumptions though such as the % of ad inventory sold)
If you use the following formula:
Revenue = (CPM * (traffic / 1000) * Pageviews ) * % of ads sold
We know that pageviews are in the 40 per user-session range
we know that their monthly traffic is 20+ million users (thats unique visits per month - not total accounts registered)
We know their monthly revenues.
Assuming 100% of ads sold with 20M users and 41 pageviews and 30M in revenue that would place their CPM value at 1.35
Now - there are a lot of adjustable variables here... their true monthly traffic could be much much higher - but all the other numbers are the same, thus resulting in a much much lower CPM value.
but I did some research into the active accounts. I had a script run and crawl a very very large number of accounts and look at the "last login date" - I found that roughly 48% of their accounts are stale.
but I wont go into that data here... - inactive, on 10/12/2007, -3/+17Here is something that the Digg community amazingly STILL hasn't grasped...Just because YOU think something is stupid, does not make it so. The rest of the world thinks YOU are stupid, and always have. Seriously..there is nothing worse than idiots who think they are smart.
Digg has TONS of problems with the site, and I am not just talking about the fact that the aveage user is ***** idiot, yet thinks he is better than others. I am talking about 5+ second load times for many pages, getting booted out every 5 minutes and having to log in again, etc. - WarpedWarhead, on 10/12/2007, -1/+13Wow, that is crazy! Could you imagine making 25 million dollars a month?!?!
- pcrepairshop, on 10/12/2007, -0/+11No wonder they don't care about re-design
- konforce, on 10/12/2007, -0/+11Haha, so true. They still haven't figured out how to stop JS from being inserted into profiles. I wouldn't be surprised if there were "underground" viruses currently collecting all sorts of things via embedded JS. (Well, actually I think even most hackers avoid MySpace like the plague.)
But really, what do they care? If people want to flock around crap like flies, there's no need to give them anything else. - Bean945, on 10/12/2007, -1/+11It's too bad MySpace doesn't force you to logout.
- clubmasta2, on 10/12/2007, -1/+9First you have to shave his legs
- brianbb98, on 10/12/2007, -1/+8not many coments. you'd think many of the myspacers would be on here all like "wowomgerzlol!!1!!1"
- mickeyknoxxx, on 10/12/2007, -1/+8@bean945
Oh it does. Than it provides you with a fake log-in screen designed by hackers to steal your password.
nothing like myspace. - AndrewNorris, on 10/12/2007, -1/+7Still saddening to know that our society would rather post dumb pictures of themselves rather than read consistently updated news.
- inactive, on 10/12/2007, -2/+8konforce...Kevin Rose feels the same way.
indicas...by still using M$, you prove to be FAR less intellgient, and mature than the average Myspace user. - succubuskiller, on 10/12/2007, -0/+5Nice post phlux. I was also going to point out the Google funds, since it fits in nicely with the numbers we know from the Google deal.
- BrownV, on 10/12/2007, -1/+6Maybe they should hire a web designer with all of that money
- Markpdotcom, on 10/12/2007, -1/+6Because they use coldfusion... its not as sturdy as regular web tech...
- phlux, on 10/12/2007, -0/+5BTW - you can apply the same formula to Digg.
While there is a lot of speculation on the actual ad revenue dig is making - there have been rumors of 800K per month. If this were true, knowing that they average 4 pageviews per user (digg is a place people come to leave (e.g. click links)) then we can determine that Digg has a CPM of ~1.1
Although assume the CPM remained constant - but readership increased, as there were some numbers showing digg traffic as high as 20M users per month the revenues would be between 1.3 and 2.6M per month, depending on ad inventory sold.
So a 20-30M annual revenue is quite good for digg.
Again - assumptions based on heresay ;) - maggot4life, on 10/12/2007, -0/+4Maybe they could spend some of that money on a couple servers? No? OK, didn't think so. Keep sucking ass myspace!!
- paulmdx, on 10/12/2007, -1/+5Sadly, I hear ya.. The auto-logout has been even worse than normal today. Also the DHTML within the Digg comments is nice and all, but they seriously need to improve it when the comment count >100.
- newfoundnoise82, on 10/12/2007, -1/+5ah the myspaces, looking at most pages on there will hurt the brain, eyes and possibly the senses.
amateur web design at its lowest. - Samsong, on 10/12/2007, -3/+7I can never catch those fricken things...
- Markpdotcom, on 10/12/2007, -1/+5*Hugs FF and Ad block pro* :)
- Remmy, on 10/12/2007, -0/+4@broomett - I'd ike to see a source for your information in the decrease of traffic. Also, what's wrong with using digg as a news source? Users post stories from the top news sites here. You just filter out the stories that are not of interest to you.
- Jeffler, on 10/12/2007, -1/+4Yeah, ywong, except Google doesn't own MySpace.
- there, on 10/12/2007, -0/+3 Surf Myspace.... this way you too can contribute funds to the next war Rupert wants.
- kenhigginson, on 10/12/2007, -0/+2They also get a percentage of the money spent on lollypops used to lure kids into pedobear sex.
- inactive, on 10/12/2007, -0/+2Facebook doesn't generate NEARLY as much. Not even the same order of magnitude. It is also not all profit. If Myspace generated $25 millin, then Facebook MIGHT generate about $5 million. And let's be conservative and say that $4 million is profit. Now you are looking at 20 years before it pays for itself. And in 20 years, no one has any idea what will happen with the internet.
- inactive, on 10/12/2007, -1/+3The booting problem has been ongoing for about a week now with me. And the load times are just ridiculous. It has gotten to the point where if a story has over 150 comments, I don't even bother clicking on it because it wil take over a minute before I can do anything with it. Granted, I don't have the fastest computer around, but I don't have the slowest one either. Basically, any story that is on the top 10 for the day list are off limits to me.
And forget about trying to edit your comment. It takes over the 2 minutes you get to edit just to get to the point of being able to accept edits. - zmigliozzi, on 10/12/2007, -0/+2and the site works so well.
- Thulcander, on 10/12/2007, -0/+2I'd like to see the Myspace Bandwidth bill. It seems everyone and their mother have profiles.
- inactive, on 10/12/2007, -0/+2don...what are you basing that on? Give some precedents that shows that a website generating that kind of traffic generally gets MORE ad revenue per month. We are all eagerly awaiting your follow up.
Should be easy. Just ONE website that makes more than $25 million a month in ads, with similar, or less traffic than MySpace. - tuzziel, on 10/12/2007, -0/+2I helped my mom create a MySpace profile... then her new prick-boyfriend helped me out of my old home.
- akinder, on 10/12/2007, -0/+2Actually, that is most of the problem with myspace, instead of building it to scale properly, the code is *****, and the answer to 'technical issues' is to just throw more servers into the mix. I'd say most of their revenue is spent buying new servers, when they should just optimize their code to run on about half of the hardware they have now.
- Hindu_Wardrobe, on 10/12/2007, -1/+2Well said, sir (or miss), well said.
I mave a memory of digg ***** itself up. I don't know what I did, what it did, or what anything did, but it ***** itself up. The comments were all re-arranged, buttons scattered throughout the place, all because I clicked sometime twice on accident.
Too bad I don't have a screenshot. - mickeyknoxxx, on 10/12/2007, -0/+1@nathos
No it was my mom. - RSundvall, on 10/12/2007, -0/+1MySpace is a giant rip-off. They lie about their traffic. I have proof. They claimed 55 click throughs on one of my ads and all of my tracking software AND a study of my raw access logs showed only 15 click throughs. I have similar results on other ads as well. How could I then trust their impressions claims? When I complained and asked for my money back they said my only option was a 7 day out clause. I paid $5,000.00 for a month which comes to about $167.00 per day. Well two days before my contract ran out they ran $2,249.00 worth of impressions! They basically STOLE MY MONEY because I complained. DO NOT waste your ad money on this site. These are the most unethical people in the business.
- Remmy, on 10/12/2007, -0/+1Welcome to freedom. Everyone is allowed to have an opinion and express it. If you disagree with it, guess what? That's your right. There is nothing to grasp here. It's an open exchange. Digg has it's problems: Spamming, gaming, etc... but someone thinking something is stupid while you disagree isn't a problem of the digg community. It's your problem. Calling someone an idiot for not being interested in what you or "the rest of the world" is interested in makes you out to be the fool, not them.
- GoDawgs7, on 10/12/2007, -0/+1$25mill a month and it still sucks...
- 1000RainyDays, on 10/12/2007, -0/+1Hmm..so then why doesn't myspace have servers that are worth a damn? I'll think of that $25 million X 12 everytime I see the "error" screen from now on...
- betona, on 10/12/2007, -0/+1$25 million is all? I used to work for a portal that isn't nearly as large as MySpace and we made a lot more money than that. I would've figured their revenue would be closer to the $1B/ year level.
- nathos, on 10/12/2007, -1/+1I thought I saw your mom on myspace!
/i keed - inactive, on 10/12/2007, -1/+1"$25m is damn low for a website that generates that much traffic."
Maybe advertisers realize that no one who uses MySpace has a legitimate job. - inactive, on 10/12/2007, -0/+0stickam ftw
- Zergo, on 10/12/2007, -0/+0not too surprising that they make that much on ads. I mean they'll put anything on as an ad, including spyware (reference: http://blog.washingtonpost.com/securityfix/2006/07/myspace_ad_served_adware_to_mo.html)
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