Microsoft Lands 3-Year Digg Ad Deal

Microsoft (MSFT) and Digg announced a three year ad partnership that usurps Google (GOOG) ads. Under the three-year arrangement, Microsoft will sell and serve ads on Digg.

Digg’s Kevin Rose in a blog post says the pact will allow the company to focus on design and adding new features. Microsoft and Digg will also “work together on future technology and advertising initiatives,” according to a statement.

While this is a high profile Web 2.0 win for Microsoft, which also serves ads for Facebook, it’s not a huge deal to Google.

Federated Media, which is Digg’s current advertising partner, also remains in the mix, according to the companies.

The big question: What’s the value of the deal with Digg? A semi-big question: Was Google vying for Digg? A smaller question: Is Microsoft gaining ad traction with up and comers and at what price?

Digg and Microsoft expect to carry out the agreement in “coming weeks.” In the meantime, maybe we’ll get some answers to those aforementioned questions.