AOL Announces Relocation to New York City
September 17, 2007
Move Expected to Help Company’s Efforts to Re-brand, Re-tool
AOL, the company that fueled the home Internet revolution of the 1990’s, announced today that they will be relocating from Dulles, VA, to New York City next spring.
This announcement comes as no surprise to those who have witnessed the online company’s struggle to keep up with search engine giants like Yahoo, Google, and Microsoft. AOL’s plans to re-brand itself as an advertising company facilitate the need for the relocation.
“If you’re going to be in the advertising business,” says Randy Falco, chief executive and chairman of AOL, “you have to be in New York., because that’s where all of the agencies are, that’s where all of the money is controlled, on Madison Avenue.”
Ron Grant, AOL’s chief operating officer, thinks that the new move, and the new branding strategy, will both produce positive results for the company.
“There’s really been a shift to the network business,” says Grant, “portals aren’t really big enough to meet the needs of advertisers.”
Using targeting technology from Tacoda, enabling them to “capture” and store data about consumer web browsing, AOL hopes to bridge the gap between portal ad sites and traditional advertising methods.
The relocation of AOL, a subsidiary of Time Warner, could translate into job layoffs for the company’s more than 4,000 VA based employees, but there has not been any official statement from the company regarding how many employees will or will not make the move to the new 152,000 square foot space, located just south of Union Square.
Along with the relocation and re-branding of AOL, comes the announcement via a company memo, from Mike Kelly, president of AOL Media Networks will leave the company after the transition is complete.
Analysts have expressed concern as to whether this move is a case of “too little too late,” but remain optimistic about AOL’s potential for growth in advertising and sales.