Digg’s Next Business Model
Recently an article about Digg’s founder, Kevin Rose, hit the front page of Digg. This was a very long article, so I decided to bookmark it and read it at a later date. Last night I was reading the article and came across an interesting piece of information.
In the article they talk about a new plan to sell targeted ads with the use of the Recommendation Engine. Here’s the excerpt from the article. . .
The idea is for Digg to be a conduit for personalized news and, eventually, personalized advertising.
This is one of the reasons why Google has done so well with Adwords. When someone searches Google for ‘iPhone Apps’ you will not only get results pertaining to iPhone Apps, you’ll also get sponsored links from advertisers that are targeting the ‘iPhone Apps’ keyword.
This makes the ROI much better than if you bought advertising from a website(like MySpace/Facebook). I don’t think Digg will do as good as Google is doing, but I think it will definitely help take Digg to that next level. It will benefit advertisers to show a banner ad only to only visitors browsing the [category name] here. Even though Digg is used by a ‘highly technical’ audience, why would a Tech company want to show their ads to people browsing the Sports Category(it works both ways).
Thankfully this is something we don’t have to worry about. Normally when a website introduces a new advertising model, the visitors could get paranoid. The possibility of ‘new ad spots’ can ruin a good website. I wasn’t happy when Digg used tricks to increase pageviews. . .but I think Kevin is smarter than to ruin the experience with obtrusive banner ads.
And if he does. . .I guess we can always use Adblock.