When the deal for Verizon to buy AOL was announced last month, executives from both companies said AOL was an appealing acquisition because of its advertising technology. On Monday, AOL showed some of the value in announcing a deal with Microsoft.

Under the agreement, AOL will take over management and sales of display, mobile and video advertising that appears on Xbox, Skype and other Microsoft products in the United States, Canada, Japan, Brazil and five European countries. The move takes Microsoft largely out of the display ad business while giving AOL access to some of the web’s most popular destinations.

In turn, Microsoft’s search engine, Bing, will power search results and search advertising on AOL websites. The arrangement could lift Bing, long a second fiddle to Google, which is being displaced as the search engine of choice on AOL sites.

“For us, it’s another piece of validation for how far we’ve taken Bing in six years,” said Rik van der Kooi, corporate vice president at Microsoft.