Comments on: DIGG Losing Money Despite Huge Traffic

By: FoolsGold

FoolsGold — Wed, 24 Dec 2008 15:07:33 +0000

Digg Demographic emphasizes heavy net users who are too young to have high disposable income…
Okay. Some options:
Change the Digg Demographic.
Convince advertizers young heavy net users DO have high disposable income.
Convince advertizers that young heavy net users may not have high disposable income but they still have enough of it and do spend it freely and are therefore a good market.
Form one of those dreaded DiggItCliques and use it as a captive tool for enhancing the value of Digg’s first page.

By: johnnycaraveo

johnnycaraveo — Tue, 23 Dec 2008 05:38:11 +0000

I see what you are saying about the Digg Demographic.

By: JoeDuck

JoeDuck — Mon, 22 Dec 2008 21:41:38 +0000

Johnny it seems to me DIGG has had a long time to develop strategy which is why I was so surprised they were losing money even during a very bullish online ad market. Myspace is very profitable and Twitter and Facebook are arguably too new to really value yet though IMHO all these “high traffic / low revenue” websites are still valued in bubble mode.

FoolsGold: Yes that was the idea and I think it still works pretty well as they cracked down on the abuses, but the Digg Demographic is probably not all that desirable to most advertisers as it is weighted to young heavy net users who don’t have all that much disposable income.

By: FoolsGold

FoolsGold — Mon, 22 Dec 2008 20:14:26 +0000

Recollections: DiggIt was some site that allowed someone browing the web and encountering an item of interest to him to indicate the existence of his interest in the item. The large numbers of users were expected to act as an intelligent crowd whose Diggs would reveal nuggets of value. After opening, the site seemed to be troubled by DigIt cliques which had their own agenda. Revenue is apparently derived through google ads that reward clicks.

By: jimmy s

jimmy s — Mon, 22 Dec 2008 18:22:05 +0000

i use the service ://URLFAN which to me is more transparent floating stories to the top, without human editors

http://www.urlfan.com/site/buzz_100/600.html

It’s a little more clear than both digg and reddit when it comes to showing whats moving, since thats what they focus on. according to alexa it’s about to overtake reddit so they must be doing something right.

By: JohnnyCaraveo

JohnnyCaraveo — Mon, 22 Dec 2008 05:11:56 +0000

Hold on a second, what happens when you compare digg.com to other popular sites like twitter, myspace, youtube, facebook, aren’t all the sites losing a bit of money because of the state of the economy? Either way I think digg.com will survive due to its number of unique hits. All they need is a proper marketing strategy. Good luck digg!

By: JoeDuck

JoeDuck — Sat, 20 Dec 2008 23:20:24 +0000

I’d guess that the coming advertising winter is going to *punish* sites that are old but do not turn a profit. DIGG is still considered golden by many so maybe they’ll escape, but I don’t see VC money flowing to prop up bad business models, and if it does … shame on the VCs

By: Rampant Rabbit

Rampant Rabbit — Sat, 20 Dec 2008 18:14:17 +0000

Yes, I have stopped using Digg since i discovered their big mistake. Not telling either.

By: Daniel

Daniel — Sat, 20 Dec 2008 08:17:06 +0000

no wonder google stepped away from the digg deal. but i think digg is doing some major mistakes which they dont see. me not telling