AOL and Blog Ads
Looks like AOL is going to face some difficult decisions.
With their user base falling due to cheaper, faster service providers, it seems that AOL has turned to advertising to boost revenue. This means ads on AOL hosted blogs and online journals.
Sounds like a good idea?
Problem is, AOL’s devoted base that remains doesn’t like these ads, saying it infringes on their desire for privacy and personalization of their home pages.
This leaves AOL in a sticky situation. They have to make money, but they don’t want to alienate their customers even more than they already have. But it seems like they don’t want to listen. Their response?
“The decision to implement banner advertising on AOL Journals is consistent with our business and advertising practices,” AOL spokeswoman Kathie Brockman said in an e-mail.
AOL better work to find a way to reach a common middle ground acceptable to both parties. Their business plan is failing as it is.
I think AOL will lose a lot of users by using ads unless they figure out a way not to make them intrusive like most other sites with ads. My mom and her 6 sisters all are addicted to AOL because they’re scared of change and they like that AOL stops so many of the popups and advertisements that they don’t want to see. I haven’t talked to them about this yet, but I’m sure they won’t be happy.
Comment by Erin — November 30, 2005 @ 3:20 pm