When AOL is in the news, it means business... CEO Tim Armstrong said advertising would be AOL's primary source of revenues in his turnaround plan for the company. As such, AOL already demonstrated its willingness to leave non-viable operations behind by selling its failing and ailing social site Bebo for a reported $10 million. Now it's building a new future, starting with the launch of an innovative political ads platforms and at the same time looking for its future head of music operations.
Advertising Politics hub
One of the first constructive steps that are taken to find new revenue streams at AOL is the launch of the company's Advertising Politics hub (www.advertising.aol.com/politics), a platform designed for political advertisers. "The site provides detailed information and recommended tactics for multiple varieties of political campaigns, ranging from fund-raising to location-based get out the vote efforts," MediaPost reported.
DIY Or Get Help Approaches
The platform offers two possibilities: buyers can either design and run their own campaign or do it via a AOL's sales team. The upcoming mid-term elections are likely to drive media buyers to the site this Fall as they try to convince the masses. All the more reasons for AOL to have "assigned seven sales executives to focus solely on political campaigns," MediaPost commented.
At the same time, AOL is intent on also turning around its music business and is therefore looking to hire someone to run it. It has appointed executive search firm Spencer Stuart to find the 'lucky' person who will be in charge of "contributing to the growth of AOL's revenue by defining market trends and opportunities, creating a relevant business model and developing new digital- related services, products and capabilities," Bloomberg quoted the recruitment firm as saying in a memo. The new music business head will report to AOL's SVP Entertainment and his/her mission will be to turn the unit into "one of AOL's highest performing content businesses," the memo said. AOL spokeswoman Caroline Campbell confirmed the validity of the memo, Bloomberg reported. Campbell said the memo was dated May 2010 but the search is still under way. Spencer Stuart spokesman Jim Horton declined to comment to Bloomberg.