14 DAY TRIAL // AOL is trying to reinvent itself as a media platform with hundreds of niche products covering every Internet user's wishes. While still raking in large amounts of money from its dial-up business, a reportedly $1 billion yearly, that revenue source is expected to dwindle in the next few years. While also facing a spin-off from parent company Time Warner, new CEO and Chairman Tim Armstrong has spent his first 100 days visiting AOL offices around the world and is now ready to share some of his plans for the company.
After reviewing all of AOLs businesses and looking at future opportunities, a few areas of focus have emerged. The biggest focus will be on AOL's most successful and promising venture, its Media Glow platform housing a considerable number of very popular blogs, like TMZ.com, Engadget, and countless others. Advertising is also an important component, with AOL looking to expand advertising.com's network of affiliated sites. Another point of interest is mapping and local content through its MapQuest service, with traditional services like email and IM also in focus. Finally, the company wants to start AOL Ventures, an investment firm focusing on early-stage startups.
The first two areas are linked together with the growing network of successful niche blogs providing valuable advertising space for companies targeting a specific demographic. While AOL's advertising division hasn't been very successful, with Armstrong blaming the current economic downturn, but also its initial lack of focus, the premium advertising space the blogs provide could be very profitable.
Local content is becoming increasingly important, with many companies beginning to focus on local advertisers and content targeted at smaller communities. AOL has taken a step in that direction, recently acquiring two companies focused on local content, and hopes to revitalize its MapQuest service merging mapping and local content for a more unified offering.
Finally, AOL hopes to provide a more unified social experience with better integration between AIM, ICQ and Bebo, for example. Also, looking ahead, there are no plans for big investments, so this is where AOL Ventures comes in, which will focus on small businesses and key technologies.