Digg Goes with Microsoft for Ads

Social media site Digg has entered a deal with Microsoft to sell and serve display and contextual text ads on Digg, and 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,” Steve Berkowitz, senior VP of Microsoft’s Online Services Group, said in a statement. “We believe advertisers will welcome Microsoft and Digg’s combined strengths to forge more meaningful connections online.”

Digg’s current partner of 18 months, Federated Media, will continue to work with Digg and Microsoft in a limited capacity, “focusing on integrated sponsorships and custom programs like the Arc project in labs,” according to Digg founder Kevin Rose.

“Federated Media has unique advertising sales assets that dovetail with our efforts, and we look forward to working with them,” Berkowitz said.

Google AdSense ads, which formerly ran on the site, will be replaced by Microsoft-served ads.

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