Microsoft Digital Adverti-sing Solutions will be Piczo's exclusive UK ad sales partner across all display formats.
The deal will enable brands to target Piczo's audience of 12m unique monthly visitors with ads based on their age, demographic profile and geographical location.
Piczo managing director Chris Seth said: 'We're working closely with Microsoft to market responsibly to teens and create rewarding brand experiences for users.'
Piczo is the UK's fifth-most popular community website, behind MySpace, Bebo, YouTube and Facebook, according to Hitwise. It claims to have seen a sharp rise in interest from brands wanting to reach its teen audience.
Earlier this year Piczo secured $11m (£5.6m) of second-round funding as part of its plan to expand into new markets. The company received investment from San Francisco-based US Venture Partners and Luxembourg company Mangrove Capital.
This article was first published on Marketing