• by Laurie Petersen , July 26, 2007

In a big win, Microsoft will manage the ad inventory as exclusive provider of banner, display and paid search advertising on Digg--replacing Federated Media and Google.

"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.

Through the three-year collaboration announced on Wednesday, Microsoft's technology and sales force will bring relevant advertising to the more than 17 million monthly unique visitors to Digg, which surfaces the best online content as voted on by users.

Federated Media will continue to provide other types of advertising on Digg, including integrated campaigns and sponsorships.

"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," he added.