AOL ads get rich

By Paul Costa

Posted on 22 Aug 2002 at 14:39

AOL is planning to bring media rich adverts to its subscription-based services.

The company has previously been limited to selling simpler pop-up adverts, but has developed the technology to allow adverts containing Flash animations and other streaming media.

Rich media advertising generally generates more revenue per unit than standard commercials. Previously, AOL's software was unable to display such commercials, but these technical issues have now been resolved with version 7 of its software. AOL recently cut nearly 90 percent of its pop-up commercial space in an effort to stop users being deluged by adverts, but clearly feels that launching media rich advertising will not have the same result. Mac users will not be able to see the new ads.

'Listening to customers and advertisers is not a mutually exclusive exercise... there's a middle ground to present ads in a way that's appealing,' spokesman Nicholas Graham said. AOL has seen advertising revenues from its 35 million subscribers worldwide decrease for some time- down 42 percent in the last quarter alone. Since the majority of AOL's subscribers have modem connections, it remains to be seen how users will react to any advert-related slow downs.