Microsoft hands some of the reins for its display ad business to AOL

From PC World: Microsoft will be handing over its display advertising business to AOL in nine markets as part of a new partnership between the two companies that was announced Monday.

Under the deal, AOL will use Bing to power search through its website, and will operate display advertising, including mobile and video ads, for Microsoft’s portfolio in Brazil, Canada, France, Germany, Italy, Japan, Spain, U.K. and the U.S. That means AOL will be powering all the display ads that run in those countries, including on MSN, Xbox, Outlook.com and Skype.

Moving those components of Microsoft’s display ad business to AOL could make advertising with the software giant a more enticing option for businesses. Under the new partnership, companies can work with AOL to get their advertisements placed across sites like Huffington Post, Engadget and MSN. Previously, advertisers would have needed to reach out to both companies in order to get similar reach.

The financial terms of the deal between the two companies was unclear. As part of the deal, Microsoft will be transferring its sales and trade marketing employees to AOL. The company declined to comment on the number of employees impacted, but a report by Bloomberg claimed that the deal will affect about 1,200 people. Microsoft continues to operate its display advertising business in markets not included in the deal with AOL.

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