AOL Adds Ads to E-mail

For the first time AOL is marketing to paying customers inside of their e-mails. The company is following in the footsteps of free services such as Google Gmail and Hotmail in inserting ads, but it is unusual for a pay-for service.

AOL says customers don't mind, and that may be true since most of their users aren't motivated enough to browse the web outside the AOL environment or try more sophisticated software. AOL has chosen not to use context-sensitive advertising, but if the company is smart, it will at least base the ads on the demographic information collected from customers.

Pay for ad-supported services can succeed (see cable TV), but it is a fine line to walk. If the ad revenue enables AOL to lower its subscription fees it would be well received by consumers.

Found via PCWorld.