In its imminent update, MSN Spaces is to partner with Kanoodle, in order to bring pay-per-click advertising opportunities to its users. Spaces that contain BrightAds integration can choose to display ads from a variety of areas, which notably includes Adult Content. Spaces that wish to display sponsored listings must however be publicly viewable and contain content that is in English. BrightAds also includes an RSS ad service, much like Google's Adsense for Feeds, however it still remains to be seen whether MSN will give users the option of utilizing this.
By offering its users ad revenue, MSN is encouraging them to keep their Spaces more active and promote it amongst their friends and family. The addition of this service also allows MSN to target their blogging rivals that permit AdSense integration, be it via hosted or non-hosted products.
Update: Apparently Kanoodle is only one of a number of advertising partners MSN is working with, seems like we missed the big one in the fact that Amazon.com will be working with them too. Now you know :)