AOL Shifts From Masses To Niches

May 22, 2008 by Rich | 0 Comments
In Branding, Internet, Niche


Associated Press:

A company rooted in bringing the Internet to the masses, AOL is shifting its focus toward serving niche audiences with the launch of dozens of specialty Web sites.

The latest — ParentDish for parents — formally launched Friday, with The Boot for country music and The Boom Box for hip hop and R&B to follow on Tuesday.

Time Warner Inc.’s AOL, branching out in hopes of doing a better job attracting crucial advertising revenue to offset its rapidly declining Internet access business, calls the niche sites “passion points.”

The sites reflect a growing sophistication of Internet users, who are spending less time at portals like AOL.com and Yahoo.com. and directly seeking specialized content at more focused sites. Examples outside AOL include Boing Boing, which keeps tabs on technology and the Internet; The Sartorialist, on street style; or Mom Logic, on parenting and being a mom.

“The consumer market is clearly fragmenting,” said Bill Wilson, AOL’s executive vice president for vertical programming. “We wanted to give people many front doors, not just one front door to come in.”

Over the past several months, AOL has launched or revamped dozens of Web sites — from general portals such as Music and Sports to specialty sites like Spinner for indie music and StyleList for fashion. AOL plans to offer about two dozen more by year’s end, including BigDownload for downloadable video games.

AOL isn’t alone: Yahoo Inc. recently launched Shine for women ages 25 to 54. But, as the No. 4 Internet property behind Google Inc., Yahoo and Microsoft Corp., AOL has been more ambitious.

“The current problem with an awful lot of the mega sites is the fact that they aren’t well targeted,” said Rob Enderle, an industry analyst with the Enderle Group. “The material is written and designed for a general audience, and the reality is we are all individuals.”

Photo by AOL.

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