According to ClickZ, several advertisers have experienced early success with Digg.com’s new ‘quality based’ advertising system.

Digg’s recently launched ad platform involves a quality based pricing model: ads that are ‘Dugg’ tend to get more prominence for less cost, whilst ads that are voted down result in advertisers having to pay more to keep their ads displaying… to the point where ads that fail to get user approval become too expensive to run on the site.

ClickZ reports that various advertisers using the system have derived click-through rates (CTRs) upward of 2 percent:

Amazon achieved a 3 percent click-through rate with an ad promoting the sale of full-season downloads of television series’ ‘Battlestar Galactica’, ‘Heroes’ and ‘The Office’.

Toyota got a 2.4 percent CTR when it promoted a HowStuffWorks.com article, ‘10 Tips from Happy People’ sponsored by Prius.

Intel got a 2.2 CTR with its ‘2006 vs. 2009 Mobile Internet Devices’ ad.

Interestingly, Intel and other Digg advertisers were helped by a Digg copywriter who guided the brands to develop headlines likely to appeal to the Digg audience. Smart!

Digg, too, is happy with its platform. So much so that not only does the company expect the ad platform to generate more than half the company’s revenue by mid-2010, but Digg is also planning to launch an ad network built on the Digg Ads system next year.

Digg will initially sell standard ad inventory on partner sites, before implementing a more integrated ad platform on those sites.

Source: Zachary Rodgers, “Digg’s Quality-Priced Ads Perform for Toyota, Amazon,” ClickZ, October 14, 2009

This entry was posted on Monday, October 19th, 2009 at 8:57 pm and is filed under Kikabink Lab, Online Advertising, Social Media. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.