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M&M’s Blog goes behind the headlines to offer a running commentary on the business dynamics within the international media and marketing industry. The M&M editorial team joins forces with industry experts and local market heroes to balance a bird’s eye view of global trends with the importance of local insight.

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  • Why Facebook, Yahoo and Microsoft are all still better than AOL

    16 September 2011

    Tomorrow marks the four year anniversary of AOL, once the largest ISP in the US, announcing plans to become an online advertising business. Here is a quick look at what AOL has done over past few years to mark this rebranding effort and a benchmark of how far they have got to go:

    ...

    September 17, 2007: AOL announces plans to relocate its corporate headquarters from Dulles, Virginia to New York City and combines its various advertising units into a new subsidiary called Platform A. AOL acquires Advertising.com.

    October 15, 2007: As part of the impending move to New York and the restructuring of responsibilities at the Dulles headquarters complex, AOL CEO Randy Falco announces plans to lay off 2000 employees worldwide by the end of 2007.

    October 16, 2007: 750 employees are laid off at Dulles in a bid to refocus on online advertising. 400 more were laid off a few months later.

    2008: AOL creates animated cartoons to explain behavioural targeting to its users, showing how a user’s past visits to other websites could determine the content of advertising they would see in the future.

    February 6, 2008: Time Warner CEO Jeff Bewkes announces that Time Warner will split AOL's internet access and advertising businesses into two, with the possibility of later selling the internet access division.

    April 14, 2008: AOL signs online advertising deal with Verizon

    April 2009: Tim Armstrong, formerly with Google, is named Chairman and CEO of AOL.

    November 23, 2009: AOL unveiles a sneak preview of a new brand identity which has the new logo Aol sumperimposed onto figures (for example, a goldfish, a rainbow, a tree, a postcard).

    December 10, 2009: The new logo is enacted onto all of AOL's services, just as Time Warner splits from AOL.

    September 28, 2010: AOL signs an agreement to acquire TechCrunch to further its overall strategy of providing premier online content.

    December 2010: AIM eliminated access to AOL chat rooms noting a marked decline of patronage in recent months.

    February 7, 2011: AOL buys the Huffington Post for $315 million.

    March 11, 2011: Staff cuts continue at AOL. Just two days after finalising its purchase of The Huffington Post, AOL plans to cull almost 20% of its 5,000 strong global workforce.

    March 16, 2011: AOL repositions itself as a key destination for women, as part of a shift in strategy that will see it put the brands of recent site acquisitions above its own.

    March 2011: AOL steps up promotion of new ad-serving platforms

    April 11, 2011: ADTECH, AOL Advertising’s global ad serving platform, announces a new addition to its suite of ad management offerings, ADTECH Lite.

    September 16, 2011: ADTECH, a leading provider of ad serving technology and part of the AOL Advertising.com Group, announces that the company will be using the forthcoming ad:tech London event to present its latest ad serving product, ADTECH Canvas, to its customers.

     ...

    Despite AOL's effort, online display ad publishers Facebook, Yahoo, and Microsoft remain well ahead of AOL. In effect, according to comScore figures in the US, AOL's 3% market share of display ad impressions in Q1 of this year pales in comparison to Facebook's 31.2%. Clearly, AOL has failed to make an impact in the past four years, where does it go from here?

    Comments (0) | Permalink

    Posted by: Juliet P. d'Arguesse

    Tags: Reputation, Display

  • Cooking up brand awareness

    04 August 2011

     

    Online advertising is great at driving direct response - fact. However, this ‘killer app’ has often been its Achilles heel, as it fails to deliver on the requirements of the brand marketer, where awareness and uplift are more important metrics. This is one of the reasons why brands have been slow in embracing digital and have not invested the marketing budgets they could have online.

    However recent research indicates that this may no longer be the case and I believe brand marketers should be reassessing the potential of online advertising.

    The IAB, in its quest to tackle this misconception, announced its latest findings based on research in conjunction with GfK and Nestlé. The research explored how online advertising compared against TV and social media in driving brand awareness for the Maggi so Juicy cooking sauce brand (a brand I’m personally not familiar with but I’m told is available in all leading supermarkets).

    A key finding of this was that online generated an uplift in brand awareness of 7.8%, compared with just 4.1% generated by the box in the corner of our living room. Online was also much more cost-effective in terms of both percentage uplift points and reach.

    This follows on from earlier research the IAB carried out around the launch of Starbucks Via (its take home brand of coffee) which again highlighted online delivering substantial incremental reach, uplift in brand metrics based on frequency of exposure and the ability to build awareness cost effectively.

    All very compelling for brand advertisers I think you’ll agree.

    Other branding studies in Europe by companies such as MediaMind (formerly eyeblaster), comScore, Carat Insight and United Internet Media, as well as findings from AudienceScience in the US, simply add to the proof that online display advertising does have a significant impact on consumers’ brand awareness, perception and purchasing habits.

    It’s still early days,  but with a growing body of proof and an interest in developing appropriate online branding metrics, it may well be marketers have under-valued the role online advertising can play in building brands and should be re-visting where it fits into in their communication strategies.

    Comments (0) | Permalink

    Posted by: Stuart Colman

    Tags: IAB, Online advertising, Display, Branding