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December 08, 2004

Marketing budgets profit AOL

AOL Chief Executive Officer, Richard Parsons, announced at a UBS Media Conference in New York, that they expect advertising revenue over the next year to increase around 33%, creating revenue of around $1 billion for the company.

The move is almost certainly part spin, part extended Public Relations damage control, part marketing, and part advertising for a company losing its subscriber base.

However, what underlies the optimistic predictions is the general movement of marketing budgets to online sales. Simply put, advertising online is working, and agencies burned by the dotcom boom and bust years are finally returning to the realities of the internet - and its opportunities.

Posted by at December 8, 2004 10:32 PM

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