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AOL Births Platform A, Advertising Shop

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Sep 18, 2007 

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Sarah Novotny  |

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AOL Births Platform A, Advertising Shop

AOL announced on Monday that it will consolidate its advertising divisions and move its corporate headquarters. The ad representatives, content producers and senior executives will be moving their offices to New York’s Greenwich Village which is arguably the heart of the online advertising industry.

Randy Falco, chief executive of AOL stated to the Associated Press, “By putting our headquarters there, we’re sending a clear signal to the market that AOL intends to lead in this space.” Falco added to employees “that for most of you, this won’t affect your jobs at all,” after about 5,000 jobs were cut last August.

President and COO of AOL, Ron Grant was quoted in an interview to say that the many advertisers are now expecting closer relationships with their publishers and the move to New York will “expedite decision-making and improve value to advertisers.”

AOL is developing a new division called Platform A which will combine various pieces of the company into a strong ad server including Right Screen Media and Tacoda Inc. Platform A will make buying ad space on AOL sites and third-party sites easier for advertisers.

Grant stated, “There’s been a big shift in advertising to favor the networks. We don’t think portals are big enough to meet the needs of advertisers.” The move and revamp of the advertising division is in an effort to boost AOL’s revenues which have been decreasing in the subscription category.

President of the AOL division in charge of ad sales, Mike Kelly will be leaving the company in the move and Curtis G. Viebranz, former head of Tacoda will be the president of Platform A and an AOL executive vice president.

Tags: advertising, AOL, executives, new-york and Time-Warner

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