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story category AOL Image Reconstruction
New ads fail to impress picky consumers
(old news - 09:24AM Tuesday Jul 15 2003)
tags: business
Losing customer to both less expensive dial-up and broadband providers, AOL continues its quest to portray itself as a company ready for the high speed revolution. The company's initial series of ads, featuring celebrities such as Sharon Stone, hasn't had the kind of impact marketing execs were hoping for, according to USA Today. "We wanted to get noticed at any cost and get talked about," says one marketing exec in the article. "Who was talking about AOL any more except for the bad press? And no one ever talked about AOL advertising except to be ridiculed."

However AOL's problems are much more than just image related. Many dial-up providers are now offering $9.95 service in the hopes of luring customers looking to save money. Likewise most broadband providers also offer less expensive service. Leaking at both ends, AOL is expected to lose 1.3 million subscribers this year alone. To cure what ails them, the company hopes its walled garden approach to content, combined with a sustained marketing blitz, can both retain customers while convincing existing customers to upgrade to broadband.

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