This afternoon Digg CEO Jay Adelson was interviewed on Fox Business News, where he spoke about the future of Digg and the ways it could potentially cooperate with strugging news organizations. During the interview Adelson made a few interesting comments, some of which contrast with News Corp CEO Rupert Murdoch’s assertions in an interview conducted earlier today that “people understand that it’s perfectly fair that they are going to pay for [news]“. Instead, Adelson said that he doesn’t think your average consumer is going to be coughing up money for news any time soon. Instead, he thinks that payments will come from content hubs and aggregators, including Digg itself.

One way Digg can help, Adelson said, is by helping these news sites with their advertising using techniques similar to the ones Digg has implemented.

In a world where Facebook and Twitter dominate the headlines, it’s easy to forget that other social properties, like Reddit still send a ton of traffic to sites. But they absolutely do, and now you can buy your way into that. Starting today, Reddit is testing out a new closed beta experiment to allow anyone to purchase a sponsored link on Reddit’s homepage. Yes, that means you, not just some random advertiser. And not just the homepage, it’s the top overall link.

Now, obviously, this link will be clearly labeled as “sponsored,” but that shouldn’t make it that much less of an enticing opportunity for some individuals who want to drive traffic to their site. Reddit says it sees anywhere from a 2% to a 10% click-through-rate on the ads that run in this area. At the very least, this should mean thousands of hits coming to your site that wouldn’t otherwise get.

It wasn’t all that long ago that Digg captured our collective imagination. In fact, even last year Google thought it was important enough to seriously consider buying Digg, only to back out at the last minute. Digg was the future of news. It was crowdsourced, democratic editorial. The masses decided what was news, not some 50 year old guy in a skyscraper in New York, who secretly hated the Internet.

a lot of the shine has come off Digg. And while it still drives a tremendous amount of traffic, it’s amazing to see just how completely it has been eclipsed by Twitter, which in turn is still just a drop in the Facebook bucket.

Comscore worldwide data says Digg, Twitter and Facebook have 32 million, 58 million and 411 million unique monthly visitors (September 2009), respectively. Google Trends says much the same thing, but the growth over time is fascinating visually. We started with Digg, then added Twitter, and then added Facebook. In the end, Digg and Twitter are just footnote blips in the chart.

About a third of all Internet users worldwide visited Facebook in September 2009, says Comscore. A year ago it was 17%. And what about Digg? They grew from 15 million worldwide unique visitors a year ago to 32 million today. And they tripled page views to 171 million. So it’s not really about Digg doing anything wrong. They just pale in comparison to the guys currently in the spotlight – Twitter and Facebook.

If you could only use one service, which one would you choose? I’d be unhappy about the forced decision, but I’d go with Twitter, even with all its flaws.

Charts below:

Brad Garlinghouse, a former SVP at Yahoo, joined AOL as President of Internet and Mobile Communications two months ago. And he’s clearly doing a little housekeeping, and forming his own exec team. His first major hire? Kiersten Hollars, a Digg PR exec.

Hollars is part of Garlinghouse’s old team at Yahoo, and left the company shortly after Garlinghouse did to take over PR and communications at Digg. She joins AOL later this month.

“This is more about working with Brad again, and nothing about Digg,” she told us in a phone interview this morning, adding that she’s excited about the turnaround opportunity at AOL. She joins AOL as senior director of corporate communications, reporting to both Garlinghouse and EVP Corporate Communications Tricia Primrose.

Digg’s looking for Hollars’ replacement immediately. So if you want be the person to handle all corporate communications and Kevin Rose babysitting duties at Digg, let them know.

Last week we posted a hazy screenshot of a new Digg voting feature called Digg Trends. It launches today.

The new feature shows an upcoming/trending story at the very top of the Digg home page. These are stories that are popular but haven’t yet made the top stories list. Users vote on whether or not they think the story should go to the top.

Digg says the goal is to put high activity stories in front of the community.

Realtime, realtime, realtime — it’s all you seem to hear now with regard to the web. But back in May, it was just emerging as a new trend that looked poised to explode. And one company at the forefront of that was Scoopler, a Y Combinator-backed realtime search engine. Today, being ahead of the curve has paid off, as the service has just raised a seed round of funding from some big name investors.

When we intially wrote about the service (remember, very early on in the realtime search phenomenon), we noted that the presentation of results was impressive, but the results themselves were utterly dominated by Twitter. That really shouldn’t have been all that surprising considering Twitter’s popularity in the space. But the service has since added some new features to make it more robust.

The somewhat blurry image above is, we believe, a new Digg homepage voting feature that will launch in the near future.

So what is it? It’s not the “Real Time Digg” relaunch that will integrate data from Twitter and other sources. Instead, we believe it is an experimental feature Digg will try out that encourages users to vote on whether a particular upcoming story should make it to the homepage or not.

Digg isn’t talking, so we don’t know much else. The 3/25 numbers on the left are a counter to show how much longer the story will remain on the home page (3 minutes, 25 seconds, based on us squinting at a blow up). It’s notable that users are asked to vote a story up or down without seeing comments or how others have voted.

The identity of the hand is also a mystery. More on this when it launches.

There is a lot of chatter about TweetMeme’s rather robust growth to over 18 million unique monthly visitors on Compete.com. That puts them ahead of well known sites like LinkedIn and gmail.com with 15 million and 9 million visitors, respectively, on the service). In fact, Tweetmeme currently sits as the 68th largest site on the Internet, according to Compete.

What does TweetMeme do? They offer other sites a “retweet” button that makes it easy for readers to send story links to Twitter. We use it on all our sites, you can see it on the top right of this post. They also have analytics around tweets sent via the service, and a home page that shows the most retweeted Tweets at any given time. It competes with Digg, TechMeme, Google News and other news aggregators to show breaking news.

But is TweetMeme really so big? The short answer is no.

Last week, we wrote about Digg testing a new kind of ad that allowed sponsors to find previously submitted Digg content and and wrap it in their own ad unit. The first such ad just went live for everyone this morning. And it seems like a really great idea.

Since I wasn’t able to see the ads before, I wondered if the actual Digg content portion of the ad would link back to the sponsor or to the actual story. Not only does it link back to the story’s permalink page, but it routes it through a DoubleClick referral. So yes, Digg is getting paid for each of these clicks, while users are being sent to content that quite likely do actually want to go to. Win-win.

Digg founder Kevin Rose launched a side project called WeFollow, a Twitter directory, earlier this year. Twitter users can go to the site and add themselves under a specific category. Without much in the way of marketing, the site has grown to 654,000 Twitter users, all of which went to the site and added themselves. And now, someone with knowledge of the deal tells us, Rose has transferred WeFollow ownership to Digg.

This wasn’t exactly an acquisition, though, because Digg didn’t pay anything for the site. “The data became very useful for Digg,” says our source, and it was awkward keeping it outside of the company.

Digg has long been planning to launch a more real time version of the site, and we’ve speculated that Digg will soon surface new top stories based at least partially on stuff becoming popular on Twitter and other similar services. WeFollow gives Digg data on who the top Twitter users are for various categories.

WeFollow is also changing the way it ranks users. Currently it’s based only on total follower counts on Twitter. In the next day or so, though, WeFollow will change its algorithm and give more weight to users who tag themselves properly, and then have followers who have also tagged themselves similarly. For examply, if TechCrunch is tagged “startups” and a lot of people following TechCrunch have also tagged themselves startups, that gives a lot more weight to our account in that category. This goal is to reduce spam and give better data.

Below are screenshots of the new, yet to be launched service. The top shows the SEO tag by number of followers, the current way WeFollow ranks users. The bottom shows ranking by influence. Matt Cutts jumps to the top of the list, even though he’s only no. 8 in overall followers.

Apparently, not only is Digg feeling the need for speed, but it’s feeling the need to make money too. And that’s good because this new idea is rather interesting.

Digg is testing a new type of advertisement on its site that basically surfaces old content submitted to Digg that is relevant to certain advertisers. So, as you can see in the example below, if Norton wants to advertise its new security software, it can find a few old Digg items related to Internet security and put them in the ad box along with their banner. This not only advertises their product, but gives users something potentially useful to click on.

As the web matures, we’re continuing to see what I think is a good trend. Instead of trying to cram new features into services, emphasis is being place on improving the performance of the services. The latest to do so is Digg.

In a post today, Digg’s VP of Engineering, John Quinn, talks about what Digg is doing to try and make the site faster. This includes moving static resources like CSS and JavaScript to Content Delivery Networks (CDNs), and switching to higher performance distributed databases. But the one of the biggest changes is something so small, that it’s kind of humorous Digg didn’t do it a long time ago.

Fresh off their new $100 million funding round, Twitter continues to scoop up talent from around the web to expand operations. The latest catch is Mark Trammell, who had spent the last two years working on user experience for Digg. Trammell will start his new job at Twitter in a week on the design team working to build a user research program.

Trammell is the latest in a series of long-time employees to leave Digg in recent months. In May, former lead architect Joe Stump announced he was leaving to do a new mobile location startup (now called SimpleGeo) with former SocialThing founder Matt Galligan. A couple of weeks ago, Digg’s design lead Daniel Burka, announced he would be joined Tiny Speck, the new social gaming startup led by former Flickr co-founder Stewart Butterfield.

For the past four and a half years, anyone who has visited Digg has seen the work of Daniel Burka. But starting at the end of this month, Burka is moving on to a new project, he writes on the company’s blog today. Meanwhile, Digg is bringing in another high profile web designer to be its new Director of Design and User Experience, Jeffrey Kalmikoff, best known for his work on Threadless.

Next month, Burka (pictured) will begin work at Tiny Speck, the new project started by a group of former high level Flickr employees, including Flickr co-founder Stewart Butterfield and former Flickr head of engineering, Cal Henderson. Still not much is known about Tiny Speck, but it’s expected to be some sort of social gaming project.

I chatted with Kevin Rose backstage in between TechCrunch50 judging. For those who think he’s still the wacky Diggnation party boy, I want to point out he beat most of the TechCrunch staff to the conference this morning.

This video is longer than most of our behind-the-scenes glimpses, but we covered a lot of territory. Rose tells us the single most important product move Digg has made in the last year, whether his company is worried about the Twitter threat, what’s coming next for Digg, his favorite company that launched today (HINT: CitySourced founders may have a potential angel investor), and whether or not starting Pownce was a mistake.

Video is on the jump.

Digg announced a seemingly small, but rather interesting change on its blog today: It has added a “rel=nofollow” tag to every link on the site that it doesn’t trust. What this means is that all the spammers who submit their stories to Digg, are now basically out of luck.

Sure, all spammer who submit something to Digg hope that it hits the frontpage and brings a rush of traffic. But more important to them are the links associated with Digg. If a story is popular on Digg, it will also likely garner quite a few links back to it. But even if it doesn’t become popular, the link coming from Digg itself gives some weight to the spammy URL in a search engine crawler’s eyes.

As if we needed yet another URL shortening service, TweetMeme is today debuting ReTwt.me in an effort to make that particular saturated field even more so. And it’s not like it does anything special in comparison with the plethora of similar services out there.

It shrinks longer links in order to make them more tweetable (and retweetable), it gives you some options to share links from its main website, throws in some analytics so you can see just how few people actually click those links you’re spreading and comes with an API.

The only slight advantage it could have over competitors like TinyURL and bit.ly is a tight integration with the TweetMeme service / button, but they won’t be exploiting that connection and keep on supporting the URL shortening services as they were before (which is obviously the right thing to do).

Here we go again. The newspaper industry is blaming online news aggregators for its dwindling profits and inability to adapt to a world of links and truly-free flowing information. (They like it when information flows freely into their pages, but not so much when it flows out).

On Thursday, paidContent ran an essay by media consultant Arnon Mishkin called “The Fallacy Of The Link Economy” which was misguided on so many levels.

The newspaper industry wants to go back to the world before the Web, when each newspaper was a small media bundle packed with stories, 80 percent of which sucked. But it didn’t matter because you’d gladly pay a dollar to read the one or two stories that caught your eye on the front page, hoping there would be more inside. Well, guess what? The media bundle is dead. News sites can no longer capture reader’s attention with 20 percent news, and 80 percent suck

Digg’s been busy lately adding new features—some loved, some not—but they seem to be having a positive effect on overall. In June, comScore estimates the site brought in 8.8 million unique visitors in the U.S alone, up 31 percent over the preceding three months. Update: The July numbers just came out, and Digg’s unique U.S. visitors went up to 9.5 million.

What accounts for the change all of a sudden? Well, by Digg’s own admission, once it introduced the Diggbar it saw an initial lift in visitors just as a result of people passing around short links. And it’s been getting even more aggressive on that front lately, having to reverse itself at times.

But it’s not just the Diggbar.

Digg has just announced that it’s going to begin rolling out Digg Ads, the site’s innovative and experimental advertising product that invites users to vote on which ads they like best, over the next week. Digg first announced the new advertising product in June, and they were briefly spotted in the wild in July, though Digg claimed at the time that the ads were limited to an internal test. Digg plans to roll the product out gradually over the next few days to a small subset of users, with plans for a larger deployment over several months.

Here’s how it works: the more upvotes an ad gets, the less advertisers have to pay, giving them an incentive to produce content that will appeal to the Digg userbase. At this point it’s too early to tell how the ads will fare (there’s a chance Digg users will just launch a bury brigade whenever they see one), but if the screenshot below is any indication they stand a fair chance at being a hit.