Digg and Microsoft Set Up Exclusive Ad Deal

Digg will leave behind Google AdWords to pick up Microsoft as the exlusive provider of its advertising for the next three years.

Microsoft managed to secure a significant foothold in online advertising on Wednesday by striking a deal with Digg, the online news aggregator and ranking system. Under the three-year deal, Microsoft will be the sole provider of advertising for Digg, signaling the end of the site’s relationship with Google AdWords.

Digg manages to attract 17 million users monthly through its sprawling index of categorized news items ranked on popularity. Users simply vote or “digg” articles that they like, boosting the article up further in the system.

In the past, Google – currently the largest online advertising provider – was used to provide targeted advertisements based on the content Digg readers were viewing. Microsoft’s control over a well-trafficked and respected site may signal the beginning of the end for Google’s stranglehold on internet advertising.

“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 Digg CEO Jay Adelson, in a statement. “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.”

Financial details of the arrangement weren’t announced.