America Online

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America Online

• Getting Results for Partners

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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

REACH
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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.

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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

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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.

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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,
  Amazon.com, Monster.com, and Oxygen

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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

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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 month1.
• With 58 of American households online, the
  Interactive medium has critical mass2
• AOL has 31 million subscribers, 62 million users3.

82 Reach
Source 1. Media Metrix Digital Media Report,
September 2001, Home/Work Combined 2. Jupiter
Communications, Spring 2000 3. AOL Internal Data
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AOL Outreaches The Top SevenNational News
Providers Combined
Thirteen
Source Circulation figures from ABC and BPA, Six
month averages ending 9/30/00 for newspapers
12/31/00 for magazines
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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.

The Power of One
Source AOL Internal Data, Media Mix Presentation
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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.

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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.

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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.

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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
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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.

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Volvo AOLA 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
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Results

• 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

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The Marketing Cycle Today
During the Sale
Before the Sale
After the Sale




Branding
Information
The Sale
Post SaleCRM

• TV Ads
• Magazines
• Online

• Brochures
• Sales People
• Print/editorial
• Online

• Store
• Telephone
• Catalogue
• Online

• 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.
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Online Connects and Complements Other Media
During the Sale
After the Sale
Before the Sale




Branding
Information
The Sale
Post-SaleCRM

• Customer self-service
• Live-help (Instant Messaging)
• Targeted database marketing

• Banners
• Content Integration
• Promotions
• Endorsements

• Web sites
• E-mail
• Content
• Search

• Shop_at_AOL
• Interactive Banners
• Drive traffic to retail
• Better backend management

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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.
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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
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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.

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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.

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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.

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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

Connect
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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.

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And Lower Expenses

• Save money on promotion and advertising.
• E-mails 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.

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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.

Time Spent per Media
Source SRIs Media Mentor, Spring 2001
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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.

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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

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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

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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.

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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.

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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.

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Questions?