Saving AOL with the help of P&G

The analysts say the situation is dire, but Tim Armstrong, CEO of AOL, tells the New York Times how he is going to save the company with the help of Procter & Gamble.

Former Google boy Armstrong tells the paper that: “If you tried to recreate AOL’s assets, it would be incredibly expensive.”

This is true and so is the fact that no one would. For Armstrong it is a case of working with what you’ve got and building on it. He has to, but let’s face it AOL is a funny company. A real hotch potch. Here’s a for instance. AOL still has 6.2m dial-up internet customers. Pretty amazing, right? So is the fact that 200,000 of them cancel every month.

Its main business is (internet access being an increasing side show) advertising and content. It makes a lot of content and Armstrong is pinning his hopes on that being AOL’s salvation.

Others are less sure. Richard Greenfield, an analyst with Pali Capital, tells the paper: “Expectations from myself and Wall Street for AOL are still dire.”

On Friday Armstrong will lay out his five-point strategy to save AOL: “AOL has a choice to make,” he says. “We either lose slowly or win quickly. We are choosing to win quickly.”

Do behemoths win quick? Armstrong tells the New York Times he wants to compete directly with Yahoo!, Microsoft and Google to become the dominant network for display ads. With Yahoo! and Microsoft cosying up that could be tough.

Armstrong is also looking at content. Definitely less competition here. Microsoft is kind of interested, but Google really isn’t (it only wants other people’s content…boom boom).

Armstrong is looking at AOL’s 70 blogs, including PoliticsDaily, Boombox (hip-hop music), WalletPop (personal finance) and Paw Nation (pets).

To that mix he is going to add a lot more video. Armstrong is hoping that all this content will appeal to consumer products companies with big marketing budgets like P&G.

“If you ask P&G what companies have the products that make you feel most comfortable, with the best content and the best targeting, AOL is already on the list today. Our aim is to move AOL to the top of the list.”

 

[Twitter]

  • Kevin Gordon

    Sounds like a winning media commun ication strategy to me. And this years award for advertising against content goes to the men in white coats.

  • http://twitter.com/SweMeatballs78 Pras

    When will you start doing some research – the Maybank Card of Champions was launched in 2011.

    See link for release http://themalaysianreserve.com/main/index.php?option=com_content&view=article&id=987:maybank-scores-in-new-tie-up-with-man-united&catid=36:corporate-malaysia&Itemid=120

  • ChrisJReed

    If that was the case why was it headline news here in Singapore in April including press coverage in the Straits Times and on Channel News Asia and why have they only just started doing all the marketing in Singapore?

    • http://twitter.com/SweMeatballs78 Pras

      Because they rolled it out to Singaporean market in March, but the Champions Card was launched last year. 

  • ChrisJReed

    That’s the point though, i am sure that they thought at that point of the season that Man U would be champions come May otherwise they would have not have spent hundreds of thousands of dollars on POS in every branch and ATM, TV campaign, social media etc etc with only 2 months of the season to go and it was April that the press release is dated…….they didn’t think Man City would do it, be honest…..

  • Adam Bulleid

    A horrific piece of writing. Surely the point of being a journalist is to be impartial yet intelligently opinionated. This would appear to be neither.

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