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This logic would also apply to other tech blog and generally tech sites with tech-savvy users. Most of them, including Wired, Ars, Digg, slashdot are doing just fine.

Digg has their own marketing/advertising team, unlike reddit. I think this makes the difference.

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Digg is also smart about actually selling and placing ads compared to reddit. I've been checking out digg for the first time in years the last few days, and I was somewhat surprised to find that I actually kind of like the way digg does interstitial ads.

Reddit has one header ad and a couple of sidebar ads that are self-advertising more often than not.

(I will note for the record that this ad[1] spotted earlier today got a good laugh out of me. Somebody has used reddit's self-serve advertising to its fullest potential).

[1] http://img.skitch.com/20100716-jc2rdcbrfcq62c4aa2u4q6d3dq.pn...

Yeah some guy paid $8 CPM for rickroll, reddit has a minimum of $20k per campaign.

Here is a discussion on the ad: http://www.reddit.com/r/ads/comments/cpm2d/i_cant_believe_so...

Jesus, no wonder they can't make any money and are constantly serving up self-ads.

And not all forms of ads are blocked out by AdBlock type plugins/addons by default either, just the most onerous ones and those people can be bothered to manually add.

Just checked: adblock + easylist = no ads on reddit.

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