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July 25, 2007

Microsoft wins the Digg Web advertising account

Posted by David Hunter at 4:33 PM ET.

Kevin Rose, founder of the popular social networking site Digg, provided a terse heads up today that Digg is shifting its Web advertising to Microsoft:

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.

The formal press release isn’t any more explicit other than saying that it’s a three year deal, but Federated Media is nominally Digg’s current advertising partner and apparently parcels out the ad space between direct sale banner ads and Google text ads. On that basis some pundits are viewing this as a loss for Google which I suppose it is on an indirect level at least. Since no terms have been announced yet, it’s not clear what the price of this eyeball auction was and one wonders whether Google was ever directly involved in the bidding.

As for Federated Media, they continue in some unclear ancillary role selling custom sponsor display ads and working on special projects.

Filed under Coopetition, Digg, Federated Media, Google, MSN, Microsoft, Social networking, Technologies, adCenter

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3 Responses to “Microsoft wins the Digg Web advertising account”

  1. Dave Says:

    This is terrible news for the linus/foss lovers how went to digg. But at least there is which is digg-style site just for foss/linux news and articles. fsdaily will never sell out to MS.

  2. New Business Report » Blog Archive » Microsoft Wins The Digg Web Advertising Account Says:

    [...] Source  Filed under: Account Review, Business Report | [...]

  3. Digg drops Microsoft for ad sales | Microsoft News Tracker Says:

    [...] has terminated its exclusive ad sales deal with Microsoft according to a report at ClickZ: Digg is ending its two-year-old exclusive ad selling relationship [...]

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