ONLINE ADS>> AOL's Publicity

Bob Stewart (rstewart_at_mars.superlink.net)
Sun, 23 Mar 1997 11:29:53 -0500

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>According to this story, many journalists have found
>that AOL publicity has been a bit scattered. I can't
>imagine how they've gotten that impression. ;->
>So AOL is looking for a high-profile public
>relations executive with a background in PR strategy
>to help tell its story.

Actually, I've always felt that marketing and PR are the only things that
AOL has done really well. I can't see how you can blame the PR department
for bad press when there's always some new class action suit, or an
investigation by a state attorney general. I think all of AOL's problems
can be traced to its strategic blunders.

Their biggest blunder was not moving to a Web based architecture and
separating the access side of the business from the content side. Since
they aren't charging by the hour, many of their smaller and medium sized
content providers, which lived on a share of user fees, aren't going to be
able to make a go of it. And the larger content providers are all covering
their bets with their own Web sites. If, as AOL claims, their users have
real access to the Web, how much leverage is AOL going to have when it
comes time to renegotiate contracts with the New York Times, etc.?

Then you have a system that has historically enticed users to stay online
with things like chat rooms that now must get by on a flat fee. They're
doubling the size of their modem banks (and network and maintenance costs)
for basically the same level of income.

If it wasn't for their master-of-hype press releases, AOL's stock would be
selling for about $1.58 right now. ;-)

Give credit where credit's due, I say.

Bob Stewart

rstewart_at_mars.superlink.net

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