AOL Launches MediaGlow

AOL believes that it has increased focus on original content along with its embrace of the ultrafragmented online audience -- two very non-portal attributes -- providing the struggling Web firm a competitive advantage against its rivals in the portal space.The Time Warner-owned Internet pioneer announced on Monday (Jan 12) the formation of MediaGlow, a new division which joins the ad sales-focused Platform A and the social media focused People Networks.MediaGlow encompasses a collection of 70 niche content sites launched in recent years, ranging from AOL Health to nonbranded properties like TMZ.com. According to executive vp of programming for AOL Bill Wilson, it’s these sites – which should number 100 by the end of 2009 -- which differentiate AOL from rivals Yahoo and MSN.“We’re not counting on our portal to drive traffic,” said Wilson, who assumes the role of MediaGlow president, in an interview with Mediaweek. “That’s such a difference from where we sat three years ago. We’re really focusing on editorial voice...and we are focused on creating as many relevant starting points as possible. Others have different plans.”AOL’s plans are obviously a long way away from its dial-up-subscription, walled-garden days -- days when portals ruled the online ad world. “We’ve said, how do we engage a new consumer on the open Web? We’re really leaning into the fragmentation of the Web very aggressively. Clearly we are doubling down here. This is a reinvention of AOL. It’s a transformation of the company.”That transformation, which has happened gradually over the last several years, has resulted in the launch of such non-old-AOL properties like the irreverent women’s site Lemondrop.com and the frat boy-aimed Asylum.com. With 70 niche sites now in AOL’s editorial stable, and 30 or so more to come this year, doesn’t that mean AOL is simply creating just another ad network of niche sites? Not so, said Wilson, since each site is launched with advertiser demand factored in.Since the reorganization last fall during which AOL formed a national sales team within Platform A focused on premium advertisers and content, advertisers have been able to purchase (and have purchased) space on sites like Asylum directly, he said. Or they can purchase bundles of sites based on demographic groups.Additionally, sites like Asylum, which AOL claims now reaches over 3 million unique users, are built to run lean -- crucial for a company that is still under heavy shareholder scrutiny -- and draw younger, Web savvy users. Since its launch back in January 2008, Asylum’s staff has gone from two to five employees and has been bolstered by 40 freelancers, said Wilson.And its non-AOL brand identity likely resonates with a different slice of the Web universe. “AOL means different things to different people, especially in the lean-forward world of the blogoshere,” said Wilson. “We’re definitely looking to attract younger core demos. We also embrace third party links [like never before].”

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AOL Launches MediaGlow

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