• by November 23, 2004

Rewind please.

America Online reps called yesterday to clarify a few points that the Minute misconstrued vis-à-vis a report on CNET's News.com. Apparently, CNET, a news outlet that we greatly respect, incorrectly characterized AOL's pre-roll video opportunities as a new video service, which is not really the case.

Here's the thing: AOL currently offers pre-roll advertising opportunities (15- and 30-second video ads that appear prior to a piece of video content) on AOL, AOL.com, AIM, and within a matter of weeks, Netscape. Over the long-term, the strategy is to offer the same video advertising opportunities on all the AOL properties.

AOL guided me through AOL News, Sports, and Music where I encountered 15-second pre-roll ads for Procter & Gamble's NyQuil and Old Spice brands, and Sharp's Aquos LCD Flatscreen TV. In AOL News, within the CNN Newspass section, members can access top news stories many of which are preceded by 15-second video ads.

In research and testing, AOL has found that 15-second pre-roll video ads offer a more satisfactory user experience and it is encouraging advertisers to employ 15-second ads rather than 30s. However, 30-second pre-roll ads do currently run on AIM Video.

Where did the potential for an audience of 100 million or more come from? Well, AOL explains that AOL Media Networks has the potential, over time, to offer pre-roll advertising opportunities across multiple properties thereby taking advantage of millions of unduplicated users who flock to individual properties each month.

For example, according to October data from comScore Media Metrix, AOL and AOL.com together saw 85 million visitors; Mapquest snared 35 million; AIM racked up 27 million; CNN nabbed 23 million; Netscape scored 17.5 million, and Moviefone had 8 million. Numbers like those add up and have potential.

When, and if, AOL fires on all cylinders and leverages its distribution system to the greatest extent possible, it has the potential to offer advertisers a lot of unduplicated eyeballs. That is, if it lives up to the potential. Think of it this way: AOL Media Networks is selling inventory on the following: ICQ, CompuServe, CNNMoney, the WB, Time Inc. Interactive, Moviefone, Netscape, CNN, AIM, Mapquest, AOL, and AOL.com.

Right now, AOL Media Networks is selling by audience and not by individual property. So, say an advertiser wants to target 18-to-34-year-old women, AOL presents the advertiser with the best possible aggregated collection of programming to satisfy the need. In this case, it might be online assets including Real Simple, InStyle, and AOL Living. For teens, the advertiser might be offered AOL Red, Teen People, ICQ, AOL Television's TV's Top 5, Moviefone, and AOL Music's Sessions@AOL.

Now, please press "play."

Thank you.