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America Online Getting Results for Partners Why Partner With AOL? The purpose of this presentation is: To show how AOLs unparalleled reach, compelling.

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Presentation on theme: "America Online Getting Results for Partners Why Partner With AOL? The purpose of this presentation is: To show how AOLs unparalleled reach, compelling."— Presentation transcript:


2 America Online Getting Results for Partners

3 Why Partner With AOL? The purpose of this presentation is: To show how AOLs unparalleled reach, compelling content, and unmatched online experience can create innovative, efficient solutions to your marketing and advertising problems To help you make your business more profitable

4 AOLs Value Proposition America Online is committed to developing innovative solutions that create consumer value in cooperation with our partners in a way that delivers partner-defined results and jointly builds our mutual businesses.

5 Marketers Challenges To maximize the number of customer touch points and interactions in the new, fragmented media environment. To differentiate from competitors and create a clear competitive advantage To increase customers loyalty by managing relationships more effectively To increase profits and profit margins in todays economy

6 AOLs Place in the New Media Environment AOL is the largest ISP in the world. It is not a portal. It is not the Internet. –Half the traffic in the US to the Internet goes through AOLs servers. –AOL connects advertisers to consumers with compelling content.

7 What is AOL? The most popular, informative content in cyberspace: –The AOL Service--20 Channels –AOL Web Properties group (CompuServe, Netscape, MovieFone, ICQ, AIM, MapQuest) –Over 150 content partners such as eBay,,, and Oxygen

8 What is AOL? –AOL Time Warner Web content such as CNN, People, Time, Fortune, and Warner Bros. –Over 2000 advertisers that provide opportunities to buy the latest fashions, to get big discounts, to enter contests, and to find comparative pricing information In a safe, secure environment

9 Maximizing Touch Points in the New Media Environment AOL has unparalleled reach. AOL plus the AOL Time Warner Web sites reach 82% of all online users each month 1. –With 58% of American households online, the Interactive medium has critical mass 2 –AOL has 31 million subscribers, 62 million users 3. Source: 1. Media Metrix Digital Media Report, September 2001, Home/Work Combined 2. Jupiter Communications, Spring AOL Internal Data 82% Reach 32,000,000 26,000,000 15,000,000 7,000, , ,000

10 Source: Circulation figures from ABC and BPA, Six month averages ending 9/30/00 for newspapers & 12/31/00 for magazines AOL Outreaches The Top Seven National News Providers Combined Thirteen

11 Benefits of AOLs Reach A partner can maximize reach online with just one campaign on AOL. –Considering the diminishing marginal utility of adding more and more reach in any one medium, you can add reach very efficiently on AOL. –Adding AOL can moderate the loss of reach in other media due to media fragmentation. Source: AOL Internal Data, Media Mix Presentation

12 Compelling, Valuable Content Consumers subscribe to AOL content, which makes it more credible and valuable to them (and, thus, to marketers). AOL updates the service and content continually by listening to consumers. –AOL 7.0 based on extensive research and member feedback.

13 Benefits of Compelling Content Compelling content surrounds advertising and lends it credibility and believability. –AOL understands better than anyone in cyberspace how to keep people attentive. – An average of over an hour a day.

14 Question? What would you do if you had your best customers rapt attention for over an hour a day? –AOL has more experience in capturing their attention and holding it than anyone in cyberspace. –We will answer this question with you.

15 Keeping Members Attention AOL and the AOL Family of Brands deliver a highly targeted, attentive, upscale, responsive audience. –AOL content keeps members inside AOL (76% of time spent on AOL, 24% on the Web). –AOLs safe, easy-to-use environment encourages people to shop online--they shop til they drop their mouses. Source: Media Metrix Digital Media Report, August 2001, Home/Work Combined

16 Benefits of Targeting and Time Spent AOLs pin-point targeting and long online sessions offer a greater opportunity to reach qualified buyers and differentiate (both in terms of direct marketing and branding). –Before, During, and After the sale.

17 Volvo & AOL: A Successful Partnership Volvos Challenges: –To launch the new S60 model online without the support of additional media and to work with a limited budget AOLs Solution: –Welcome Screen promotion, member sweepstakes, special member perks Optimize AOL promotional resources to generate awareness of the S60 Drive interest in the S60 through creative incentives and special offers exclusive to AOL members –Bluestreak rich media creative execution to get attention and create excitement –Identify qualified prospects and gather information about those who requested S60 brochure information Voted Best Online Campaign By AdWeek/MediaWeek

18 More than 1 million unique users visited the Volvo S60 site. Nearly 500,000 users entered sweepstakes enabling Volvo to establish a one-to-one marketing dialogue with consumers. Delivered over 27,000 sales leads to dealers -- consumers who configured a vehicle online and requested a quote. 13,000 AOL members have requested Member Packages. March 01- second best introduction ever -- and only online Results

19 During the Sale Information Brochures Sales People Print/editorial Online The Sale Store Telephone Catalogue Online Before the Sale TV Ads Magazines Online Branding Post Sale CRM After the Sale The Marketing Cycle Today Online ( Manage relationships, services, and warranties. Upsell) Online is the only medium that can deliver differentiation opportunities in all four stages of the marketing cycle.

20 Information The Sale Branding Post-Sale CRM Online Connects and Complements Other Media Banners Content Integration Promotions Endorsements Web sites Content Search Interactive Banners Drive traffic to retail Better backend management Customer self- service Live-help (Instant Messaging) Targeted database marketing Before the Sale During the Sale After the Sale

21 Benefits of Innovation You can partner with AOL and be on the cusp of and take advantage of innovations and leave your competitors behind. You can take advantage of AOLs Partner Central to learn what has worked for other companies. Your AOL salesperson will show you many success stories relevant to your industry.

22 Experience AOL has the experience, commitment, and structure to help you manage your relationship with customers. –Experience 12 years of online experience. Five years experience selling and making advertising work. Has had as many successes and failures to learn from. AOL 5.0 AOL 6.0 AOL 7.0

23 Commitment Commitment - AOLs commitment to its members and partners is legendary. –Half of AOLs employees are in Member Services. –Over 200 of IMs employees are in Account Services -- the gold standardof the Interactive industry -- all dedicated to making partners deals work. IMs #1 goal is to get results for partners.

24 Structure Structure - AOL is structured to understand your business and help you serve your customers better. IM Category Sales Account Services AIS Vertical Market teams (programming) Brand and Partner Marketing All focused on helping you connect to your customers - Before, During, and After the sale.

25 Benefits of Experience, Commitment and Structure AOL can help you craft creative, high-impact solutions tailored just for you (branded or unbranded). AOL has the research capability and resources to validate your online campaigns effectiveness (DMS). We have the experience, commitment, and structure to get the results that you define.

26 How to Increase Revenue Increase market share though innovative, differentiating advertising and promotions (branding). Educate the market about new products or new uses of an old products (information). Sell more online. Drive traffic offline. CRM - Upsell

27 And Lower Expenses Save money by selling online. –Less expensive than stores –Less expensive than catalogues –Less expensive than on the telephone (call in or call out) –Customers do the work online.

28 And Lower Expenses Save money on promotion and advertising. – s less expensive than direct mail and FSIs –Online more efficient than TV, magazines (but perfect in combination with them). –Adding reach is more efficient on AOL.

29 Put Interactive in Your Media Mix A carefully planned combination of targeted media can get results for you for less money. Media Mentor data shows 11% of media time is spent online. Put Interactive in your advertising and promotion media plans. Source: SRIs Media Mentor, Spring 2001 Time Spent per Media:

30 Maintain Market Share In todays economy effective, differentiating advertising and promotion can not only maintain but also increase your market share now and five years out as your competitors cut back. Take advantage of current Interactive advertising efficiencies now.

31 AOL Provides Many Solutions Advertising & Direct Marketing –Deliver brand recall better than TV and magazines –Increase reach in combination with TV and magazines Strategic Relationships –Unique Interactive solutions to customer problems Inbound logistics Operations Outbound logistics After-sales service

32 AOL Provides Many Solutions Large, global cross-platform solutions –Road-blocks, e.g. –AOL International Local/Regional cross-platform solutions –Local –National spot Transforming solutions –Unique solutions marshalling all of assets of AOL Time Warner to do business in a new way. No lines for Harry Potter, e.g

33 How to and Not to Use the Interactive Medium See Michael Porters HBR article, Strategy and the Internet. See Rosbeth Moss Kantors HBR article, Ten Major Mistakes of Wanna-dots.

34 Summary AOL can maximize your reach and touch points with qualified buyers. AOLs expertise enables us to create and validate innovative solutions that give partners a clear, differential competitive advantage. AOLs experience, commitment, and structure can help you increase your customers loyalty.

35 Next Steps Give us your commitment to pursue a relationship. Tell us who in your company will be our contacts to gather sufficient information so we can begin to craft customized, innovative, efficient solutions for you. Give us a date when we can come back to you with some suggested solutions.

36 Questions?

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