In the beginning, social networking sites and online advertising just didn’t play well together. Social sites weren’t a good “fit” for traditional types of online advertising.

When sites like MySpace and FaceBook tried to incorporate online advertising, the results were really pitiful.

But after a few years of trial and error, the social media companies have finally learned how to effectively advertise to a social media audience.

The relatively new “Digg Ads” is a prime example.

Last October, Digg kicked off its “Digg Ad” program. The results have been nothing short of amazing.

Digg Ads don’t look like ads. They have the look and feel that Digg users expect and are comfortable with.

It’s been five months, and believe it or not, Digg Ads are now producing 25-30 percent of all Digg revenue, according to the company’s publisher and chief revenue officer, Chas Edwards. They must be effective!

Mr. Edwards pointed out that campaigns on Digg that mimic the style of Digg (such as using a numbered list or pointing to articles rather than product information) are the most effective, with up to 4 percent CTRs (click-through rates).

Is this the wave of the future for advertising on social networks? Our guess would be, “most likely.”

We urge affiliates to check out Digg. If you’re currently paying for PPC advertising, this might be a good opportunity to diversify your business.