I'm curious as to exactly how these types of social websites make money. I generally know where it comes from, considering the block ads and google ads. And being that Digg and the others are heavy PHP sites, I figured some of you might know.
But Digg itself seems to barely have any advertising. The front page has one big ad block on the top right, and either a few google adsense type entries or another long banner ad, depending on the timing.
So I don't understand how a company with little advertising showing can be worth millions. Same thing with del.icio.us, technorati, and other similar sites.
Theres also a bunch of CSS showcase sites, which seem to be more flooded with ads than these major ones.
Can someone break down the basics?
01-14-2008, 11:46 PM
It could be just the sheer amount of users the database has. A lot of members means a huge potential for marketing, so maybe those sites are potentially evaluated at millions? If every user were to click 1 ad every time they visited, there is a huge potential to make money.
I honestly have no idea and I'm just guessing :)
01-14-2008, 11:49 PM
Well all sites have to start some place, and no site ever just pops up and makes it big!
Site like Digg, see so many users in a day that they don't need to push ads, the number of daily users that come through and see an interesting ad and click it can keep a site afloat.
Digg, and the others may also sponsor some of its web space and ad space to other sites willing to pay for it.
There are other things that will effect the way your ads attract users. For instance Google's Ad services allow for content searching. By that I mean, the add bot scans a page for content, once a major content type is found, the google ads reflect the page content.
Say the word "game" appears 30 some odd times in a page, and the word "action" appears only 15 or so; When Google scans the page, it will find games and display content relevant to games in the ads, since a genre is also specified on the page "action" you may see some ads about action games.
Site popularity comes from high ranks in search engines, and lots of users.
Of course, you can't get one with out the other.
Thats why search engines like Goolge will scan sites the you link to, and find out what content they host, if its relevant your rank will get a boost, making you higher and broader on a search list. This also allows for more users, and since you've linked to a site with users, you'll have some from that site as well.
There are lots of tinny things that can contribute to how well known you are on the net.
I hope that this helps.