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I don't have a commercial relationship with StumbleUpon. I'm just a blogger and a regular SU user (my screen name is moreminimal).
> No one else I quizzed about it seemed to have heard about it either, so it very well could be new, or just a well kept secret.
It's nota secret from Google, and you could have found this SU page with that handy little search box on the corner of your browser:
http://www.stumbleupon.com/ads/
It should answer most of the questions you raise here -- particularly that of disclosure. paid stumbles display a special symbol on the toolbar:
http://www.stumbleupon.com/promote_faq.html#dif...
Most stumblers know this. If the site is crap, it gets a thumbs down. If not, I generally treat a sponsored site like any other.
> I can tell you that the pricing on the traffic is very steep, especially when compared with pop-under traffic (which is what this type of monetization is closest to).
Have you priced AdWords recently? SU is a bargain. As you point out, it's quality traffic.
I'm looking at one of my site's metrics right now. The bounce rate from Digg traffic is about 75%. From SU, it's 32%. This is because the traffic is so qualified: Stumblers are actually looking for what you offer, and tend to explore a good-looking site once they arrive.
I value Stumblers as much as my direct traffic. A nickel per would be quite reasonable, though I've never needed to actually buy stumbles.
About the only thing SU doesn't seem to do for me is push RSS subscriptions. I think this is because Stumblers prefer to spend their discretionary browsing time in discovery mode, rather than on Google Reader.
In any case, I don't think paid SU traffic represents any imminent threat to the quality of the StumbleUpon user experience.
Well kept secret = stealth launch.
I've used StumbleUpon for months now, and never been introduced with a help or tips screen indicating when a page is being shown to me as advertising, unless it is for StumbleUpon feature-sets I've not yet utilized.
Additionally, in the gamut of targeted page-hits you can purchase from various vendors, $.05 is *very steep* in comparison with the rest of the business. This isn't CPC traffic, either. CPC is an active movement to a page, where the visitor knows they're going into paid placement territory. In the case of StumbleUpon, it is foisted upon you.
Two very different situations.
I just emailed a guy that had responded to my post about this. He has been using the service for awhile now to promote his site. He shared some of his stats with me and said he paid $10 and got 3000 pageviews from SU. After someone "likes" your page it sorta goes viral and there's no charge for a pageview when that happens naturally. So, it doesn't really work out to $50 cpm.
@Chris
It may not be new, and it may not be a secret, but SU sure hasn't done anything to promote it.
I have never noticed anything while using SU showing me a page was "paid for" either.
Trai Davenport
Chris Baskind's comments are absolutely right.
Is it true????