Thursday, July 06, 2006
AOL to Free Content
AOL sees so much value in ad-supported content that the company is going to tear down the walls of its cloistered content and let anyone take a peak.
AOL says the move could cost the company up to $2 billion in revenue. But it makes sense when you are part of a media empire with an extensive catalog of video and music content such as Time Warner's to use ads to reach the broadest possible audience.
The company should invest heavily in video and other interactive advertising technologies to maximize the value that could be derived from content. Obtaiing demographic information from new viewers that would complement the 18 million people who log on through AOL would make for a potentially powerful group to target your marketing. You want 30,000 women aged 30-45 in St.Louis? AOL's got 'em.
It will be a huge challenge for AOL to match the Google, MSN, and Yahoo as a top-notch portal, so perhaps being acquired by Yahoo (or even MSN) is in the cards.
AOL says the move could cost the company up to $2 billion in revenue. But it makes sense when you are part of a media empire with an extensive catalog of video and music content such as Time Warner's to use ads to reach the broadest possible audience.
The company should invest heavily in video and other interactive advertising technologies to maximize the value that could be derived from content. Obtaiing demographic information from new viewers that would complement the 18 million people who log on through AOL would make for a potentially powerful group to target your marketing. You want 30,000 women aged 30-45 in St.Louis? AOL's got 'em.
It will be a huge challenge for AOL to match the Google, MSN, and Yahoo as a top-notch portal, so perhaps being acquired by Yahoo (or even MSN) is in the cards.
Posted By Jason Dowdell at 11:50 AM
Permanent Link: AOL to Free Content
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