AOL Chases Bigger Ad Revenues

11 October 2004

America's biggest internet provider, AOL, is revamping itself in a bid to woo more advertising revenue.

As thousands of the company's 22 million subscribers steadily decamp elsewhere to cheaper and faster internet services, AOL is hoping a new shopping site and a restyle of its .com website will boost income from advertisers, who are generally eager to spend online.

The shopping site (minus the AOL branding) offers consumers, and more importantly the millions not in the AOL fold, help in finding a particular product through its 'pinpoint' service. The company hopes it will bring in both ad and ecommerce revenue.

A similar strategy has been followed with the imminent transformation of the website, which will feature free music and editorial content from Time Warner magazines.

Time Warner's vice chairman, Don Logan, who oversees the America Online division, says: "We have the opportunity to deliver sustainable growth over the next several years. If we don't do it, it's a failure of execution on our part."

Data sourced from Washington Post Online; additional content by WARC staff