Not easy to refloat an Internet company, especially when his intentions are unclear. AOL has just spent 257.2 million euros for the acquisition of American newspaper information online Huffington Post. However, the group always gives the impression of being a patchwork of sites in many different media, unlike Yahoo and its unique brand of politics.
One may wonder if, in one case as in the other, success will be at the rendezvous. The activity of ISP Internet still accounts for more than 40% of sales for AOL and an even larger share of its profits. However, this turnover was down 26% in 2010. So eager to buy AOL content sites, hoping that advertising revenue close the gap.
Thus the "HuffPo", famous site for information and entertainment listed on the left, has joined the patchwork of AOL, which includes blogs specializing in technology and hyperlocal news sites. The co-founder of HuffPo, Arianna Huffington, will be named editor of the editorial content of the group.
The Huffington Post, very rapid growth, has reaped its first profit. AOL, it generates Internet congestion. If he manages to steer a portion of its audience to the HuffPo - and vice versa - all should glean additional advertising revenue. AOL also said it would cut 20 million dollars (14.7 million) costs of the site.
However, the problem for both AOL as Yahoo, is the following: whether national or local information or publications, all the contents do not drain the same hearing. By bringing together almost all the content under a single banner (Yahoo), we obtain a trademark on a nebulous unique advertising platform.
The multiplicity of brands allows it, a better audience segmentation. But in the case of AOL, the connections are rare. Generate traffic advertising markets local, national or professionals are not all structured the same way. On paper it looks easy to foster the growth of the Huffington Post, based on the clout of AOL and the commercial patch, online network of news sites, micro-local.
In reality, it's different. Especially that AOL failed to sell its own sites - the sale of advertising space has decreased by 14% during the first quarter versus the same period in 2010. AOL is therefore likely to encounter two types of problem. Nothing says a surfer who follows the news start-ups is also interested in the lives of celebrities or advice of practical life.
Not sure, therefore, that the navigation between different specialized sites increases. Then, AOL will pay the equivalent of six times the projected turnover of the Huffington Post in 2011. The group's strategy is clear on at least one point: to generate traffic, AOL is willing to spend lavishly.
(Translation Beatrice Laroche.) More comments on the economic and financial news on Breakingviews. com. Article published in the edition of 10.02.11 
One may wonder if, in one case as in the other, success will be at the rendezvous. The activity of ISP Internet still accounts for more than 40% of sales for AOL and an even larger share of its profits. However, this turnover was down 26% in 2010. So eager to buy AOL content sites, hoping that advertising revenue close the gap.
Thus the "HuffPo", famous site for information and entertainment listed on the left, has joined the patchwork of AOL, which includes blogs specializing in technology and hyperlocal news sites. The co-founder of HuffPo, Arianna Huffington, will be named editor of the editorial content of the group.
The Huffington Post, very rapid growth, has reaped its first profit. AOL, it generates Internet congestion. If he manages to steer a portion of its audience to the HuffPo - and vice versa - all should glean additional advertising revenue. AOL also said it would cut 20 million dollars (14.7 million) costs of the site.
However, the problem for both AOL as Yahoo, is the following: whether national or local information or publications, all the contents do not drain the same hearing. By bringing together almost all the content under a single banner (Yahoo), we obtain a trademark on a nebulous unique advertising platform.
The multiplicity of brands allows it, a better audience segmentation. But in the case of AOL, the connections are rare. Generate traffic advertising markets local, national or professionals are not all structured the same way. On paper it looks easy to foster the growth of the Huffington Post, based on the clout of AOL and the commercial patch, online network of news sites, micro-local.
In reality, it's different. Especially that AOL failed to sell its own sites - the sale of advertising space has decreased by 14% during the first quarter versus the same period in 2010. AOL is therefore likely to encounter two types of problem. Nothing says a surfer who follows the news start-ups is also interested in the lives of celebrities or advice of practical life.
Not sure, therefore, that the navigation between different specialized sites increases. Then, AOL will pay the equivalent of six times the projected turnover of the Huffington Post in 2011. The group's strategy is clear on at least one point: to generate traffic, AOL is willing to spend lavishly.
(Translation Beatrice Laroche.) More comments on the economic and financial news on Breakingviews. com. Article published in the edition of 10.02.11
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