Insider Chatter by Donna Bogatin

Jay Adelson wears two online CEO hats: Digg and Revision3, proud host of Diggnation.

I spoke with Adelson last September when he asked the world to “kill your television” and join him instead for “televison, revised.” In other (Adelson) words, a relaunch of a “new network for a new audience” with new VC funding for the “first media company that gets it”: Revision3

I spoke with Adelson again yesterday, about the progress Revision3 is making.

I noted last Fall that Revision3 may tout its “edgy” programming and claim to want to “kill your television” but its business model actually harkens back to the early days of television when shows were made possible by brand “sponsorships.”

For example, Kevin Rose might “integrate” talk about GoDaddy hosting in an “honest” way during an episode of Diggnation.

Adelson told me at the time that Revision3’s style of “product placement” would be more effective for advertisers and more lucrative for Revision3 than 30-second spots inserted within the programming.

I underscored that investors apparently agree, as Revision3 also announced a new million dollar round of funding.

Revision3 solicits sponsors for its shows:

Revision3 specializes in product-placement, honest sponsorship, where our show hosts discuss the sponsors in an integrated way…similar to television of the 1950’s. Our sponsors have found this method, combined with the highly targeted nature of our shows, to be an extremely effective way to get their brands in front of millions of viewers a month.

Adelson continues to tout the Revision3 “TV sponsorship” model, and he has stats for backup to boot, that he shared yesterday at the Future of Online Advertising conference in New York City.

Adelson showed two video clips yesterday.

First, an old school black & white Flinstones video short featuring Fred & Barney enjoying a “Winston’s break” relaxing behind the cave, as part of a “sponsored by Winston’s cigarettes episode. Then, a colorful excerpt of a Diggnation episode featuring Alex & Kevin relaxing on their couch while admiring the latest, greatest Verizon VCast, Mobile TV, a Diggnation sponsor.

Verizon apparently was well served by the ”endorsement” received from Alex & Kevin for a fee. Adelson said in their surveys of Diggnation fans, 40% bought sponsors’ products and 85% could name the sponsors, for very high top of mind recall.

Adelson believes 2008 will see a rise in such “direct to content” sponsorhsip relationships, although he acknowledged “Howard Stern style” advertising can not be supported by all types of content.

I asked Adelson why he thought Kevin’s “paid endorsements” are accepted, while PayPerPost’s posties get a bad rap.

People trust Kevin and he is believable, Adelson happily indicated.

ALSO: Google PPA Advertorial: The Next PayPerPost?

CONTACT DONNA BOGATIN