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It is fairly clear that Digg could generate tonnes of traffic to a site if one story made it up to the front page. But the proportion of visitors from Digg revisiting the same site is fairly low
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DIGG traffic is considered to be of very "low quality" since you get as you say a ton of traffic from a front page listing but DIGG users are less likely to click ads or buy stuff from your site so they wont generate much revenue for you (in most cases)