Dive Brief:
- Microsoft Corp. will turn over the sales of its display, mobile and video advertising in the United States and eight other markets to AOL.
- AOL has agreed to use Microsoft’s Bing to power searches for 10 years under the terms of the deal, and will benefit from access to MSN and other Microsoft digital assets.
- Microsoft’s 1,200 advertising employees will be invited to join AOL.
Dive Insight:
Microsoft is further easing out of advertising sales, striking a deal that will turn responsibility over to AOL in the United States and eight other markets. While Microsoft will continue to sell search ads, the company will shed up to 1,200 advertising employees in the process.
Under the terms of the deal, Microsoft’s Bing search engine will power AOL searches for 10 years. AOL and parent company Verizon Communications will be able to offer a greater variety of digital placements, including Microsoft’s MSN portal and Xbox gaming consoles.