AOL Continues Shedding Weight in Move to Online Advertising
AOL continues to cut out the fat as it moves toward a more ad-supported business model. Today, in an email to employees, Jonathan Miller, CEO of the ISP turned content provider, said that AOL’s Access, Audience, Digital Services, and European business units would be pared down into “smaller, nimbler product groups.”
Miller is also shaking up AOL leadership, with increasing emphasis on accountability. Miller referred to the recent flub where AOL released supposedly anonymous user search data to help researchers. Only a few days later, a New York Times reporter pointed out AOL’s mistake by identifying one of the users based on their search behavior.
AOL is selling AOL France to Neuf Cegetel, a major French Internet provider, for $365 million. AOL has also assigned the bulk of its ad creative account to Massachusetts agency Hill Holliday.
This past August, AOL announced that it would be giving away many of its services for free and moving away from the paid subscription and dial-up ISP business. ADOTAS previously reported that by ditching its 6.2 million subscribers, AOL could lose up to $1 billion in revenue. In August 2006, AOL also announced that it would be cutting more than 5,000 jobs.
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