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Indiantelevision.com's Media, Advertising & Marketing Watch
 
Initiative Media to retain AOL's media planning and buying account
 
Indiantelevision.com Team
(18 February 2004 5:00 pm)
 
MUMBAI: America Online on Tuesday said it would keep its media planning and buying account, estimated to be worth more than $200 million with Interpublic Group's Initiative Media, an assignment that Initiative has handled for seven years.
 
 
The decision came after a four-month review, that had been narrowed to Initiative and Carat North America in New York, owned by the Aegis Group. The Starcom MediaVest Group in Chicago, part of the Publicis Groupe, was originally named a finalist along with Initiative and Carat, but withdrew from consideration last week, citing a potential conflict with a client, the Walt Disney Company. The review was managed by Pile & Company in Boston, says a media report

AOL, a unit of media conglomerate Time Warner Inc, has revamped its marketing program to shore up an eroding base of dial-up internet subscribers being lured by faster or cheaper services. The company also plans to target a wider market for its high-speed Internet services.

AOL is also changing its marketing team, with the major one being a shift to handling strategic projects by Len Short who was an executive vice president. It also plans to intensify promotions of a "bring-your-own-access" (BYOA) service. It is also developing new paid services to offset declines in dial-up subscriptions that AOL, MSN and EarthLink have been suffering recently. It is expected to roll out online music subscription service MusicNet, and a service that lets users check e-mail via voice mail by the end of the month, sources familiar with the situation said. AOL is also tinkering with a new discount Internet service.

 
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