Digg and Microsoft have announced an agreement in which the two
companies will collaborate to bring relevant advertising to the more than
17 million unique monthly visitors to Digg, an innovative Web site that
harnesses the collective wisdom of the world’s online audience to
prioritize the overwhelming amount of content available on the Web.

Microsoft’s advanced advertising technology and sales force combined with
Digg’s unique and growing user community make possible the three-year
collaboration, grounded in the companies’ commitment to technological
innovation and user experience.

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.”

“We are thrilled to work with these two world-class companies,” said John Battelle, founder and CEO of Federated Media. “Digg is truly a
remarkable brand.”

The companies expect to begin execution of the agreement in the coming
weeks.