July 25, 2007 1:32 PM PDT

Digg chooses Microsoft as new ad partner

News aggregator Digg has chosen Microsoft to serve up display and contextual ads on its Web site where people share and rank their favorite news items, the companies announced Wednesday.

Microsoft replaces Google as Digg's main advertising partner, although Digg will continue to collaborate with Federated Media Publishing, which links up advertisers with blogs and other sites looking to monetize their content. Financial details of the agreement were not disclosed, but the deal is a three-year contract.

The revenue-sharing deal is a win for Microsoft, which last year snagged a similar deal with popular social-networking site Facebook shortly after losing the MySpace.com ad account to Google.

With social networks and community media sites attracting an increasing amount of ad dollars from portals and other sites, these deals mean big business for the ad partners. Digg has 17 million unique visitors per month.

Digg looked at Microsoft, Google and Yahoo before making a choice, said Digg Chief Executive Jay Adelson. "Microsoft came to the table with the best solution for our needs. We even spoke with Facebook, who we view as having similarities with our model, and they're very pleased with their relationship with Microsoft."

Microsoft executives were obviously pleased with the news. "They're such an innovator in this space and have such a unique audience that we can learn so much from them," Adam Sohn, director for Microsoft's online services group, said of Digg.

Digg co-founder Kevin Rose wrote in a blog posting: "This move gives us an advertising partner with a larger organization and a more scalable technology platform to keep pace with Digg's growth. Best of all, it lets the Digg team completely focus on new feature development."

Meanwhile, Digg will continue working with Federated Media on integrated sponsorships and custom programs, such as the Arc project in Digg labs, Rose said.

"It's no secret that Digg is the kind of property--like Facebook--that was bound to get the attention of the 'Big Guys' as they continue to play an evermore fascinating game of Internet chess," Federated Media Chief Executive John Battelle wrote in a blog posting.

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22 comments

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Bye bye Digg
Partner with Microsoft? Lose customers.

Digg is now off my bookmarks... (or "favorites" for you softies)
Posted by MaLvaDo39 (365 comments )
Reply Link Flag
Good to see you leave
Somewhat sophomoric to decide not to use a site because your site has dealings with a company you don't like, but to each his own. I use sites because they are useful, not because of the politics behind it.
Posted by spacydog (380 comments )
Link Flag
Bye bye MaLvaDo39
Cnet too has Microsoft ads. So I guess we won't be seeing you here in the future!
Posted by cary1 (924 comments )
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re: bye bye digg
drama queen.
Posted by Mothra (2 comments )
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How much beer did MS give Kevin?
Never sign any legal document when you're incapacitated, Kevin.
Especially not with the Beast from Redmond.
Posted by ppgreat (1128 comments )
Reply Link Flag
Whatever
I haven't been using Digg as much since they changed the way the parts of the system work. For example, I've notice comments tend not to show up, even if you tell it show all by default. The ones I can't find didn't contain profanity, name calling, infringing material, and were reasonably on topic. I think they've ruined significant part of the UI.
If that ads become annoying I can block them with one click.
Posted by unknown unknown (1951 comments )
Reply Link Flag
Whats Digg?
The quest many ask, and it would seem will always ask.

Its not as much that they went with Microsoft, its that they choose to dump Google, which has far from lost its "flavor of the day" status. Call me crazy, but MS hasn't exactly set the world on fire in either search or online ads. Plus you can't use their service with Google on the same site, if I recall the TOS right.

The move simply doesn't make sense.
Posted by NWLB (326 comments )
Link Flag
That SuX
So much for unbiased opinions now. Micro$haft bought them out. That Really Sux. Way to Go DIGG, you greedy idiots!

Nukemall
Posted by NukemAll (8 comments )
Reply Link Flag
Yeap, because Google Ads made them independent before...
Yeah, right...
Posted by Considerate One (30 comments )
Link Flag
Wrong Choice
Shoul have chose Google.
Google is about to take over the media.
They even about to get out eith their new Google Cellular.
Do the smart thing and buy relevant domain names, like those for sale on ebay:

<a class="jive-link-external" href="http://cgi.ebay.com/Google-Cellular-Google-Cell-Phone-com-8-domain-names_W0QQitemZ120144690732QQcmdZViewItem" target="_newWindow">http://cgi.ebay.com/Google-Cellular-Google-Cell-Phone-com-8-domain-names_W0QQitemZ120144690732QQcmdZViewItem</a>
Posted by erezhustla (14 comments )
Reply Link Flag
*shrug*
I can happily continue to get all the goods from Slashdot. Digg has pretty much jumped the shark in either case, and is about useless. Timelines aside, it's like MySpace mated with Fark, and gave birth to Digg.

Now personally, the only time I would worry or wonder if some site partners w/ MSFT is those whose opinions are otherwise solid. After more than just a little impropriety concerning laptops (among sundry other subtle influences), any MSFT "partnership" makes the op-eds suspect, esp. if it's a smaller site (larger sites I just take with a grain of salt from that point on).

/P
Posted by Penguinisto (5042 comments )
Reply Link Flag
At least there's fsdaily.com
This is terrible news for the linus/foss lovers how went to digg. But at least there is <a class="jive-link-external" href="http://www.fsdaily.com" target="_newWindow">http://www.fsdaily.com</a> which is digg-style site just for foss/linux news and articles. fsdaily will never sell out to MS.
Posted by damagu (2 comments )
Reply Link Flag
if you hate MS
fsdaily.com does foss/linux news in a digg style and will never sell out to MS
Posted by damagu (2 comments )
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