Digg ends a year early its exclusive ad deal with Microsoft

Digg ends a year early its exclusive ad deal with Microsoft

Summary: Microsoft execs may consider the online ad and search businesses critical to the company's future. But capturing a sizeable chunk of either isn't an easy task. The latest example: The week after Microsoft was touting a major ad win with the Discovery Channel, it is conceding that another ad deal has gone by the wayside.

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TOPICS: Microsoft
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Microsoft execs may consider the online ad and search businesses critical to the company's future. But capturing a sizeable chunk of either isn't an easy task.

The latest example: The week after Microsoft was touting a major ad win with the Discovery Channel, it is conceding that another ad deal has gone by the wayside.

ClickZ is reporting that Digg is ending a year ahead of schedule its exclusive ad deal with Microsoft. From that report:

"(B)eginning in July, Digg will be solely responsible for all custom ad deals and a significant portion of its own Interactive Advertising Bureau standard ad inventory.

"The partnership initially was supposed to last until summer 2010, but the two always had an understanding that Digg would at some point step up to rep the bulk of its own ads, according to Mike Maser, Digg chief revenue and strategy officer. He said the company's internal sales efforts will focus on custom, non-IAB inventory combined with standardized banner ads."

I asked Microsoft for its take on the end of the year-and-a-half long Digg ad relationship. No word back yet. A spokesperson provided this statement:

"Starting July 1, Microsoft will sell network inventory for Digg through the Microsoft Media Network, which it has been doing successfully for the last year and a half. Digg has created its own internal Sales Executive team and we respect their decision to sell their owned and operated site inventory directly to help further accelerate their growth as a company. Microsoft will continue to sell Digg’s reserved inventory alongside Digg’s new sales force through June 30, 2009."

Microsoft announced last week that the Discovery Channel was spending its entire ad budget (rumored to be in the seven figures) for "The Deadliest Catch" with Microsoft. Those ads are slated to run across a variety of Microsoft properties, including the MSN.com and MSN Mobile home pages, MSNBC, Xbox Live, Windows Live Hotmail, Live Search, aand a variety of video games using Microsoft’s in-game ad platform.

Topic: Microsoft

About

Mary Jo has covered the tech industry for 30 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

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  • Probally a two way deal

    Micrsoft may have wanted out due to low returns, and Digg may have wanted the whole thing as they want (need) more money then splitting it with an add company.
    GuidingLight
    • Digg wanted to improve its reputation.

      Doing exclusive deals with the devil was counter productive.
      Amelioration
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