Digg founder envisions the future of social media advertising

Digg has revealed that it is taking on a new direction for its online advertising offering. The founder believes that social media should be used more in mainstream advertising, and that there is still massive potential within the market.

The site’s current strategy that includes banner advertising does not seem to be working as well as hoped. Financial results last year indicate that the site lost $4million, and in response, Digg is planning big changes to its site and money making strategy. Details are still a bit sketchy but in essence, ads will be voted on and users will be allowed to make comments and generate discussions regarding the ads. The ads that perform poorly would then be required to pay more or even get thrown off the site. It is a new and exciting prospect and one where the public will be able to engage with advertisements in ways that have never before been possible.

Digg also intends tracking ad viewers for data mining purposes, which companies will find useful. Specifically, behavioural and demographic data will be targeted, as the site provides an opportunity for great insight into how a company’s customers will actually behave.

Digg is serious about this new initiative, and plans on hiring an additional seven to twelve ad sales members to bolster its sales team, which currently consists of three staff members.

According to Kevin Rose, the founder and chief architect, “[The success of a new advertising model] is still largely unknown, we are going to be experimenting just like everyone else… however, the level of engagement with the ads is something that we are absolutely going to change.”

Perhaps Digg can do what Facebook and other social media sites have, up until now only promised, that is unlock the marketing potential of the social media platform. We will just have to wait and see if Digg manages to deliver.