The three year contract will replace Digg’s previous text and banner ad provider Google with Microsoft. But the network will still cooperate with Federated Media, which provides with special projects, integrated sponsorships.

Digg was considering Yahoo and Google as candidates, but it chose Microsoft, because it provides with more flexible and customizable ads. With Microsoft ads social news network will not have to create its own sales advertisements and will provide site visitors with best contextual ads.

Besides, Digg asked Facebook if the latter is pleased with Microsoft’s ads. The response was positive and Digg chose Microsoft.

Microsoft is actively engaging in cooperation with fast growing and famous social sites to attract more techies. Both Digg and Facebook are very successful sites with lots of users worldwide. Working with them, Microsoft gets closer to all those users and has a good chance to prove its quality.

Facebook also works with Microsoft ads, and analysts think these to deals are very similar. They both show how Microsoft improves its online advertising services.

Microsoft itself is happy with both agreements. Company representative said that Digg is a very successful network and that the most of its employees are frequent users of the network.

Microsoft and Federated Media are also pleased to work together for Digg.

Adam Sohn, Microsoft representative said: "Ultimately we'll do the selling for the display and the text stuff and the serving, and Federated Media will do the innovative high touch sponsorship campaigns kinds of things. Having Federated at the table thinking about the advertising opportunities will be great."

For June 2007 Digg had 4.4 million unique US visitors, which is a 222 percent increase comparing with last year’s June. For the same month the site had 9.5 million worldwide visitors, a 296 percent increase. Digg’s growth during the last years is really impressive, and it is not surprising that a company like Microsoft is keen on working with the network. HULIQ