Adweek and the San Francisco Chronicle are both reporting on Digg’s new advertising format which will let site members collectively decide which ads are worth viewing and which ads are not.
“We’re democratizing content,” said Mike Maser, chief strategy officer for the San Francisco company. “Why not let them have some control over the advertising experience?”
Digg will charge advertisers on a cost-per-click basis, adjusted based on how popular the ads become. Ads that draw a higher-than-average click rate and number of Diggs will see their CPC fall. Conversely, ads drawing few clicks and getting buried will see their CPC rise. Ideally, such a system would result in better advertising, rewarding efforts that are appreciated by users and punishing those that aren’t.
“It’s stealing from the logic of [Google] AdWords,” said Chas Edwards, the newly appointed chief revenue officer at Digg.
