With a million new members, rising advertising revenue, and rumors of posting profits of 13 to 15 cents a share, little wonder The Myers Group found that America Online Inc. is the most sought-after media company.
The research study found that almost two-thirds of the marketing leaders surveyed wanted to develop long-term relationships with AOL. Myers also found that almost half the companies surveyed planned to increase Internet spending through banner ads, sponsorship, or e-commerce. The Myers Group, New York, specializes in media economics. For the study, it tabulated 124 questionnaires to industry leaders.
In an unrelated development, AOL’s Digital City announced plans to expand its local coverage to over 200 cities nationwide by next spring. Currently Digital City provides local content for some 60 cities across the country.
AOL has also entered into a three-year alliance with PlanetOut, a gay and lesbian portal. PlanetOut will received prominent placement as an anchor tenant in AOL’s People Connection and AOL Hometown community and chat areas. Visitors will be able to link directly to PlanetOut’s co-branded (and improved) Web site, www.planetout.com. In September, AOL was among the investors who provided PlanetOut with $16.4 million in second-round funding.
PlanetOut, incidentally, has just named Alexander Ogilvy Public Relations as its Agency of Record.
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