AOL customers bought $2.5 billion worth of goods last year. What that means is a lot of transactions went through AOL.
[And there are other options to the banner ad.] Forbes seems to be making money through sponsorship instead of banner ads -- they seem to be having success by thinking outside the box, literally in this case, ... The other whole area is making deals with the big portals where you buy exclusivity on certain amounts of pages. But it's very expensive.
This doesn't change the competitive landscape, but it does add some long-needed features for members.
The challenge is that the interface on a cell phone is so poor that anything you can do to reduce the number of keystrokes and the number of menus is a plus.
AOL absolutely needs a broadband strategy moving forward, or it risks getting left high and dry by companies that do.
I can see this being interesting for professionals who might be tracking stories about a company, for example.
The portal business is all about stealing things from the competition. Go hasn't done anything that anybody has stolen. Until they do something that someone wants to steal, they're just another portal.
Few sites have garnered the kind of trust and loyalty that brands like Coca-Cola have. Portals that will prosper are those that can build closer and tighter relationships with consumers.
When you're in the mall, facing a human with a purchase in your hand, you're a lot less likely to drop those items and move on to another store.
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