digg has decided to drop Google in favor of a 3-year exclusive deal with Microsoft.
The diggsters have 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. The move gives digg an advertising partner with a larger organization and a more scalable technology platform to keep pace with their growth. Best of all, it lets the digg team completely focus on new feature development.
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.