Microsoft AdCenter serving Facebook, Digg, and EA Sports

Microsoft just signed a deal with Digg to provide advertising to its 17 million unique monthly visitors. Microsoft previously won a deal with Facebook. Microsoft also announced a deal with EA Sports, the video game maker, to serve dynamic advertising to games such as Madden NFL 08, NASCAR 08, NHL 08, and Tiger Woods PGA TOUR 08. Microsoft's recent acquisition of Massive, the in game advertising service, was the key to the EA Sports deal.

Advertising is changing - Advertising is no longer just annoying banner ads and keyword text ads. New forms of entertaining and targeted advertising for social networks like Facebook and Digg are gaining more of the advertising budget. Video games are a huge market with a focused "captive" audience. Bringing advertising into the game experience in a natural way, in the background, with product placement, integrated with the characters, will greatly improve the experience. And, the ads will rotate frequently, and even be changed and updated if the game machines are connected to the Internet.

There is more to Internet advertising than just keyword text ads. Microsoft, Massive, and aQuantive are joining together to create new interesting and creative forms of advertising. Advertising is a huge market dominated by TV, newspapers, magazines, and radio. The Internet still accounts for less than 10% of ad spending, and gaming is less than 1%. Huge growth opportunities.

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