Advertisers can now buy space on America Online for up to one-third less after the ailing internet service slashed its ad rates.

Desperate to win back advertising, AOL has reportedly reduced prices for its most popular slots from $75 (€76; £48) per thousand users to $50.

Bob Sherman, recently appointed head of advertising, admitted the online group had cut its rates, but refused to be more specific.

“When I came in, in early May, I found our pricing was somewhat north of the third ring of Saturn,” he commented. “We have brought our pricing in line.”

Improving AOL’s performance is a top priority for parent group AOL Time Warner, though the latter’s under-fire chairman Steve Case recently stated that attracting new subscribers would be the focus rather than boosting ad revenues.

Data sourced from: Daily News (New York); additional content by WARC staff