AOL plans to trim ad campaign, boost network spending to tackle traffic

Article Abstract:

America Online (AOL) is responding to customer complaints about slow response time and busy signals by reducing its advertising campaign while expanding its network. After AOL introduced a flat $19.95 monthly fee for unlimited access, its access lines were clogged with new subscribers and users spending more time online. Disgruntled customers have brought lawsuits against the company for not offering the unlimited access it advertises. AOL plans to add $100 million to the $250 million it has assigned to network upgrades. When the upgrades are completed, the AOL network will be able to handle 16 million online sessions daily. Currently, the network has a maximum capacity of 260,000 simultaneous users. AOL has 8 million subscribers. In addition to the network improvements, AOL will attempt to reduce customer usage by ending its television advertising campaign and reducing its distribution of free software.

Planning, Marketing, Online services, Online information services, Company marketing practices, Company business planning, Online information service

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Cool, cooler, coolest: Web awards proliferate

Article Abstract:

The World Wide Web is beginning to have as many awards for Web sites as it does sites; some organizations, such as Point Communications, a division of Lycos, have given away over 10,000. Awards range from the impressive to the insipid, with anyone giving anyone, including themselves, an award. The electronic trophies are in the form of a small graphic to be placed on the site, which is most often a hot link back to the award-giver's site. The informal link exchange is part of the award system, and boosts traffic on both sites. Consultants often recommend that site developers nominate their site for awards in order to increase visibility. The award frenzy began in 1994, when Glenn Davis began his 'Cool Site of the Day' page. Many Web developers and users see the awards as a marketing scheme, and no longer attach any value to the electronic trophy galleries many sites have amassed.

Achievements and awards, World Wide Web, Internet/Web Overview, Web Site/Web Page Development

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AOL to boost monthly charge 10%, stock leaps 12% to post record high

Article Abstract:

America Online announced that it will raise its monthly unlimited Internet-access charge 10%, from $19.95 to $21.95 beginning in Apr 1998. The industry leader's move will apply to its 11 million customers and possibly trigger other industry price increases. News of the increase raised AOL stock by 12%, or $11.9375, to a record $110.4375. AOL's move also follows the early Feb 1998 acquisition of rival CompuServe's subscriber rolls. The company introduced flat-rate pricing in late 1996, which has boosted average monthly on-line usage from seven hours to 23 hours. The new popularity also has overburdened expensive modems and communications lines used to deliver Web pages to consumers' homes. CEO Steve Case said AOL will apply the price increase to additional costs without discontinuing flat rates.

Prices and rates, Internet service providers, Internet service provider, Company pricing policy

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