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January 12, 2009

AOL Continues to Push Publishing, Establishes New Business Unit

AOL’s past as a dialup company is being pushed to the background yet again, on purpose for sure. This time, the company is launching a separate business unit for its publishing products, called MediaGlow. This is where the 75 properties, many Weblogs Inc. blogs, end up, all according to a New York Times story.

“Instead of having a handful of front doors, we’re creating dozens if not hundreds of front doors that are more relevant to advertisers,” said Bill Wilson, the AOL publishing executive who will be the president of MediaGlow.

Another 30 sites will be launched this year, moving the portfolio for MediaGlow past 100 sites unless they decide to close or sell off any of the brands currently there. Maybe this is necessary, because although AOL can pride itself with an increase in pageviews at 40%, the New York Times article cites JP Morgon who estimates a 18% advertising decline in 2008. Nevertheless, this is yet another great example on how blogs provide a cost-efficient opportunity for publishing companies that want to get going online with minimal hassle.

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