Digg Dumps Google Ads for Microsoft

POSTED July 27, 2007

SAN FRANCISCO -- Digg announced an agreement with Microsoft to sell contextual ads on its site, replacing Google's Adsense program. Digg lets users find popular news stories on the Web as chosen by its17 million monthly visitors.

Terms of the deal were not announced but it is likely Digg is receiving a significant guaranteed payment from Microsoft .

As part of the relationship, Microsoft will be the exclusive provider of display and contextual advertising on Digg. The two companies also agreed to work together on future technology and advertising initiatives.

"Our collaboration with Digg is about bringing our advertising technology and sales force to one of the fastest-growing sites on the Web and a true innovator in user-generated content," said Steve Berkowitz, senior vice president of the Online Services Group at Microsoft. "We believe advertisers will welcome Microsoft and Digg's combined strengths to forge more meaningful connections online."

Microsoft and Federated Media Publishing, Digg's current advertising partner, plan to collaborate to bring integrated programs to Digg's users and advertisers. "Federated Media has unique advertising sales assets that
dovetail with our efforts, and we look forward to working with them," Berkowitz said.

"We're now positioned to provide a world-class advertising solution that builds upon Digg's philosophy of providing a great experience for users and advertisers," said Jay Adelson, CEO of Digg. "As the Digg
audience continues to grow and diversify, we believe that this initiative with Microsoft, and the resources that it provides, will enable us to focus less on developing an advertising infrastructure and more on developing new
and innovative features for the site."


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