Silicon Valley Watcher - Former FT journalist Tom Foremski reporting from the intersection of technology and media

Digg Drops Federated Media for Microsoft Ads

Posted by Tom Foremski - July 25, 2007

Federated Media, the online advertising network founded by John Battelle, the search engine analyst, lost one of its largest clients today.

Digg, the popular news aggregator said it had chosen Microsoft to serve up ads. Federated Media will have a minor relationship with Digg, working on side projects.

In a post on Digg, co-founder Kevin Rose wrote:

This move gives us an advertising partner with a larger organization and a more scalable technology platform to keep pace with Digg’s growth. Best of all, it lets the Digg team completely focus on new feature development.

Microsoft signed a similar deal with Facebook last year.

Federated Media has bold ambitions to grow revenues by ten times this year to $50m. The loss of Digg could cause it to revise its revenue targets.

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