VentureBeat spotted a new Digg ad unit we’ve been expecting for a while: One that lets users vote it up or down, just like a normal user-submitted Digg story.
The theory is that Digg will be able to charge a higher rate per impression because advertisers will know their ads will only get a lot of them if its an ad that users really take to.
(Can you tell Digg is a Silicon Valley company, not based on the consumers-will-get-their-huge-ads-and-like-it East Coast?)
Digg needs the theory to prove out.
At the beginning of the year, BusinessWeek reported social news site Digg’s first three quarters of 2008 saw revenues of about $6.4 million on 30 million monthly uniques for a $2 million loss. Since, sources close to the company have told us those figures were low.
But if they were close at all, that would be extremely disappointing for a site that once wanted to sell for a price near $300 million.
Luckily for Digg, its CEO Jay Adelson has kicked the company into gear this year, hiring up a sales force and pushing out new ad products. In April, he shared the following details about the company:
- Plans to hire its own ad sales force are proceeding apace. Digg’s already hired a rep in New York, where it plans to open an office in the coming months.
- Despite what you’ve heard about its finances, Jay says Digg will be profitable before 2010.
- Digg’s premium ad inventory rates are healthy — up over a $10 CPM. That’s pretty good for a social media site, and a good reason for the site to rely less on Microsoft to sell its ads.
- In the very long term — think in terms of years, not months — Jay tells us Digg is looking at ad revenue opportunities off Digg.com itself. “We’re always looking at new opportunities with our publishers and there could be ways to help them monetise as well,” he said.
Here’s what the new ad looks like:
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