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Wednesday, July 25th, 2007 by Andy Beal

8

Digg Dumps Google in Favor of 3-Year Microsoft Deal

Kevin Rose has announced Digg has decided to drop Google in favor of a 3-year exclusive deal with Microsoft.

Hey everyone ? I wanted to give you a heads-up before the official announcement is made later today. We?ve signed on Microsoft as our new partner to sell and serve the ads on Digg. It?s a deal similar to the one Facebook signed with Microsoft last year.

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. Federated Media, which has been an awesome partner for the last year and a half, will continue working with Digg focusing on integrated sponsorships and custom programs like the Arc project in labs.

Microsoft will provide display and contextual advertising on Digg, with Federated Media filling in the blanks. Any doubts that Microsoft dangled a revenue share that was too tempting to turn down? If Microsoft can announce a few big deals like this – even if they don’t make a dime on them – other networks will take notice and come knocking.

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8 comments on “Digg Dumps Google in Favor of 3-Year Microsoft Deal”

  1. Digg.com and Microsoft Sign Advertising Syndication Agreement - Social Media, Search Engines, Website Marketing Says:

    July 25th, 2007 at 6:20 pm

    [...] section Microsoft Now Selling Digg’s Ads Digg’s New Ad Provider? Microsoft Listen to an audio feed of this article or download it and listen to itlater. [...]

  2. MikeM Says:

    July 25th, 2007 at 7:03 pm

    Microsoft edged out Battelle on Digg and LookSmart beat out FM out to represent Wikia in their new Wikia Search venture. Hmmmmmmm.

  3. Boondoggie Says:

    July 25th, 2007 at 11:32 pm

    I wonder if Google will continue to crawl the Digg pages several times a day?

  4. Digg Replaces Google With Microsoft | Internet Marketing Blog Says:

    July 26th, 2007 at 6:33 am

    [...] Digg has signed a 3 year exclusive ad deal with Microsoft according to BusinessWeek. Microsoft will be able to put their product in front of a high-tech savvy audience, according to Andy Beal. bookmark this articleThese icons link to social bookmarking sites where readers can share and discover new web pages. [...]

  5. NewsAndMediaBlog.com » Digg Changes Its Advertising Sales Company - But MSN Over Google? Says:

    July 26th, 2007 at 10:45 am

    [...] I first learned about this on the Marketing Pilgrim blog. It’s nice to know the mainstream media is listening in. [...]

  6. Sramana Mitra Says:

    July 26th, 2007 at 11:01 am

    Andy,

    Looks to me like FM got dumped …
    [link moved to profile name]
    Sramana

  7. Digg drops Google AdSense in favor of Microsoft | YugaTech | Philippine Technology News & Reviews Says:

    July 26th, 2007 at 6:04 pm

    [...] Danny Sullivan adds that this is now 3-way partnership between Digg, FM and Microsoft which used to be just Digg and FM + Google. Andy Beal thinks this is a great move for Microsoft — if Microsoft can announce a few big deals like this – even if they don’t make a dime on them – other networks will take notice and come knocking. Search Engine Land agrees that the 17 million uniques per month will get serve better performing ads. [...]

  8. ryan Says:

    July 27th, 2007 at 11:35 am

    who advertises with microsoft? and if they do, it’s successful?