Digg Digging Itself down?
- 15 Comment
digg is reporting losses
Bloggers deem digg as not only a news resource or a social web 2.0 pioneer, but also as a great traffic resource. If a blog article hits the digg home page, ten thousand visits is something you get easily. Digg is among the top 100 sites on the internet and is obvious from the 30 million visitors per month. This traffic slapped digg with a $4 million loss in 2008, with a quarter to be taken into account. Is digg burying itself down?
Digg heavily relied on the Microsoft search deal, which hinted over $100 million in 3 years. The deal was signed in 2007 and the first year brought in less than $10 million an year. Digg outsources most of the work and the 75 in house employees seemed to be left with little work. But Kevin Rose is looking ahead to double fold the employees, despite the recession. Techcrunch reported digg to have a huge funding of $28 million in September 2008. Where is all the money disappearing? Digg reported a loss of over $2.8 million dollars in 2007 and the trend seems to continue in 2008.
Businessweek reported this digg’s financials (a loss of $4million in 3 quarters so far) and that digg would just get fine by firing most of its staff. With Kevin Rose, piling more money from venture capitalists ($28 million), and the extra employees (a good percentage of them are developers), Digg seems to have an idea in its mind. Is Digg working on new advertising models or will Digg come up with a advertising platform similar to Adsense? Adding to this rumor are the deals between Google and Digg not resulting in a handshake and Google walking away from the deal twice!!
While digg takes a hibernation, other networks like mixx are witnessing sudden boost in their traffic. Will digg be buried? What plans does Kevin has in his mind? Share your thoughts.
mixx traffic growing up
Image source : techcrunch
Other social bookmarking networks and article submission sites, which you should keep an eye on
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15 Comments on this post
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Zentastic said:
I wonder, could increased competition have anything to do with it? I’m not a ardent follower of tech news, but I’ve noticed that there’re more sites similar to Digg out there now (like mixx, which you mentioned).
December 25th, 2008 at 3:35 pm -
admin said:
@ zentastic
Mixx reported a 2005 increase in traffic. But digg’s traffic did not go down. The answer is more people hooked to the internet and more people interested int technology.
December 25th, 2008 at 4:12 pm -
Jordan Kasteler said:
I hope Digg crashes to the ground. They have banned their top users and the content has gone to hell since.
Long live Reddit!
December 26th, 2008 at 12:37 pm -
Anonymous said:
A quick look at Alexa shows a trend for Digg that started during the election season: record traffic declines.
http://www.alexa.com/data/details/traffic_details/Digg.com
Anyone who spent 5 minutes on Digg from April to November knows it became a haven for the extreme Left. There is no question that people were abusing the Digg alogorithm to get their propoganda to the front page.
I love Digg, but it will never get back the hundreds of thousands of readers offended by the tasteless articles that made front page from the cesspools of the blogosphere (Huff, etc.).
To me, Digg is a once great website that will fade into obscurity very much like PointCast did after it changed media delivery via technology.
December 26th, 2008 at 12:56 pm -
admin said:
@jordan
Digg banned its top users, but there was a very valid reason behind it. Over 31% of digg’s contents were submitted by a particular set of users. They cannot be called active users, but paid diggers.
I signed up for reditt, but i am not an active user there? whats your redidit username?
December 26th, 2008 at 1:05 pm -
admin said:
@ anonymous
I hate anonymous – but love your big comment.
Alexa has become one junk calculator of late. I am very much in the same lines as you in the digg algorithm though.Yes, i love to see digg fade away..
December 26th, 2008 at 1:07 pm -
Murali said:
Nice prediction and analysis. digg should go down. They suspended many active users in the recent past.
December 26th, 2008 at 7:59 pm -
Stefan said:
Pownce?
“Pownce was closed down on December 15, 2008.”
Stefan’s last blog post..Exclude Trackbacks from Recent Comments Listing
December 26th, 2008 at 8:27 pm -
cookies said:
Great information
cookies’s last blog post..Leading Insurance
December 26th, 2008 at 11:58 pm -
GM said:
I’m more in to Yahoo buzz these days because it’s new and not corrupted yet plus I actually get traffic from the articles I post in it, something that I can not achieve with Digg.
December 27th, 2008 at 1:42 pm -
BJBK said:
I never did dig Digg. Going through the work simply to digg an interesting article or website is quite a chore. First, and understandably, checking to see if I’m a real person. Then, the “are you sure this is new” thing and so on. By the time I have completed the digg, I have forgotten why I bothered.
Just sayin’…
BJBK’s last blog post..Quick Browser Tip: Open Website in a Different Browser
December 28th, 2008 at 10:08 pm -
Website Traffic Secrets said:
I dont like digg. Error on joining. I use stumleupon now
Website Traffic Secrets’s last blog post..Ways To Generate Traffic To Your Website For Free
December 29th, 2008 at 10:01 pm -
Gennice said:
I have used Digg for a while now… But lately, their service is getting worse and worse. More errors popping up and junk stories get to the frontpage… Sad for once such a good site….
Gennice’s last blog post..40 Official and Unofficial Windows 7 Wallpapers
January 6th, 2009 at 12:19 pm -
Armen Shirvanian said:
It is tough to say whether Digg is experiencing troubles in their current finance situation, but it is quite likely that large risks are in place, as they bet on their future success. Venture capital looks to be being provided to them as necessary, and as long as the process is sustainable, their decision to keep spending is a worthy investment. One would think that they are continually updating their advertising campaigns to take advantage of their dominant position in social networks.
Armen Shirvanian’s last blog post..Making Use of New Year’s Momentum
January 8th, 2009 at 1:14 am
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