Digital Window Limited, a joint venture between Axel Springer AG and PubliGroupe, bought the U.K.-based unit. AOL (AOL) didn’t disclose a price, but it’s almost certainly much less than the $150 million Armstrong’s predecessors paid for the company back when parent company Time Warner (TWX) was funding an M&A binge.

To refresh your memory, that buying spree included the likes of Bebo, Quigo, Third Screen Media, AdTech, and Tacoda. And almost all of these purchases have been written down and/or disbanded.

A lot of that happened in the pre-Armstrong era, but the former Google (GOOG) executive is still busy remaking AOL to his own specifications. These include remaking the company’s sales team, as well as selling off other properties–“reviewing the list of AOL assets as they relate to the core strategy,” in AOL PR-speak–to raise cash and/or focus energy.

We’re still waiting to hear who walks off with ICQ, the instant-messaging service the company has owned for more than a decade.

But even while AOL is slimming down, it is looking to add bits and pieces when it can. It won’t spend a lot for them–AOL execs have told the M&A community that it won’t be plunking down more than the $36.5 million it spent on video platform StudioNow earlier this year.

“Our goal is to make Wikipedia as high-quality as possible. Britannica or better quality is the goal,” he said during a question-and-answer session at the ad:tech conference in New York.

One of the site’s strengths, however, is that contested entries–ones whose neutrality has been disputed, or that are lacking citations–are identified as such, Mr. Wales said. He wished that controversial New York Times (NYT) articles, for example, noted when they had prompted arguments among editors, he said.

Read the rest of this post on the original site

“Facebook, in some ways, is about what people are up to,” Jonathan Miller said during a keynote speech at the ad:tech conference in New York. MySpace, in contrast, “is about what people are into.”

MySpace in recent months has said it plans to focus on its appeal as an entertainment portal, where members can connect with their favorite bands and artists, as it has lost ground to status- and news-feed-heavy Facebook.

Read the rest of this post on the original site

Hi Peter,

My name is [Redacted] and I’m working with the ad:tech team on the social media outreach and promotion for ad:tech New York. ad:tech recognizes that you are a key influencer in the digital marketing community, and as such, I’d like to see if you are interested in a promotion exchange.

ad:tech will provide:

• Twitter announcement of your involvement with ad:tech New York to our 6,800+ followers.
• Your choice of: a free pass to the exhibit hall (valued at $35) or 35% off a full conference pass.

*If you are already registered or can’t make it to the event, you can offer it as a prize to your network, give it to a friend or client….It is completely transferrable.

We ask you provide:

• No less than 3 posts about ad:tech New York on Twitter, Facebook or your blog. Suggested postings: a session you’re interested in, why you like ad:tech, the exhibitors that you want to see or technologies that you are interested in learning about. What you share is up to you–it just needs to be posted by November 1.

Interested in writing a blog post and would like additional information on ad:tech? Quotes, photos, interviews, ideas, etc. will happily be offered with request.

To redeem the offer:
Share 3 posts about ad:tech, then email me, [X]@ad-tech.com, with links/screenshots by November 1.

• Tell me how you’d like ad:tech to promote your involvement with the event at the show.
• Let me know if you’d like the free expo pass or the 35% discount on the conference.

Please let me know if this is something that you are interested in or if you have any questions?

Thank you for your continued support of ad:tech. I hope to meet you in New York!

[Redacted]
Social Media Outreach
ad:tech

Well. Flattery is always a nice approach, so I’m pleased to hear about my influencer status. Also, it’s nice that the ad:tech team is willing to provide “ideas” for me upon request.

Alas, even if I wanted to take ad:tech up on its offer, the Dow Jones Code of Conduct would prevent me from doing so.

But this letter does generate two questions for me:

• Is my work nearly worthless? Or pretty valuable? Three posts is a little less than a day’s work for me. Ad:tech says that’s worth either $35 (a free expo pass) or up to $558 (35 percent of the highest price for an ad:tech conference pass). That’s a big swing!
• I know there are a lot of “social media experts” out there, because there are a lot of them following me on Twitter. But I don’t really know what they do. Is this it? That can’t be right. Can it?

Anyway, this kind of thing always makes we want to pull up a “Glengarry Glen Ross” clip. There isn’t a direct connection, mind you. Just a vibe.

Another Web company, another management restructuring!

Yahoo (YHOO) reorg fever struck AOL today too, as its advertising head, Greg Coleman (pictured here), moved the exec chairs around his domain at AOL’s Platform-A unit.

Coleman–who actually once was Yahoo’s sales head before taking the new gig at the Time Warner (TWX) online unit earlier this month–is replacing some execs and elevating others. Also there is some sleepy ad-serving stuff about the migration to its ADTECH system.

In related news earlier today, BoomTown reported that AOL International head Maneesh Dhir was leaving.

You must all know the drill by now, after endless reorg memos today, so here’s the entire skinny in the memo Coleman sent out (also, after the jump, is the 2009 goals memo sent today by AOL CEO Randy Falco that says, let’s be honest, next to nothing):

From: Coleman, Greg
Sent: Thu 2/26/2009 7:00 PM
To: Platform-A@platform-a.com
Subject: Unlocking Our Potential

Dear Platform-A colleagues,

When I met with you earlier this month, we talked about the big mission we’re embarking on and the vision I have for our future.

Over the past year, you’ve done great work integrating Platform-A and creating a powerful business from the ground up. Platform-A now provides marketers the most comprehensive and cost-efficient tools and technologies for the digital advertising space.

Just today, we took another big step forward with the migration of our ad inventory to ADTECH–an incredible challenge and a big win for us and our advertising partners. My thanks go out to the technologies and ADTECH teams who made this happen.

I’ve also been inspired by what I’ve heard from people throughout the organization, many of whom reached out to me during my first few weeks here to express their confidence in our ability to succeed.

Now, after a year of transition, key acquisitions and integration, we need to turn our attention to unlocking the full potential of this great business. And we need to move aggressively.

This will mean changes in how we’re organized, particularly in our ad sales functions. Over the next few weeks, I will be rolling out a multi-tiered plan that will address our infrastructure, make necessary role changes and bring in talent where needed. I want to tell you about some initial steps we’re taking today.

First, Don Kennedy will be stepping down as head of ad sales, a role I will assume on an interim basis. Don and I agreed that his many talents are best served in a different capacity, and I look forward to working with him in the coming weeks to define that role.

In addition, Mike Peralta will be leaving Platform-A. I want to thank Mike for his contributions to the business, and wish him well on his future endeavors. His team will report temporarily to Mark Ellis.

In addition to his day-to-day responsibilities, Mark will also be working closely with me as an advisor as we work through the changes ahead. Mark is a veteran in the Internet advertising space, and in the short time I’ve been here, I’ve quickly come to value Mark’s insights into the market and Platform-A. I’ve asked Don to lend his keen insights as an advisor during this process as well.

We will also be holding two days of meetings next Tuesday and Wednesday with regional ad sales executives to discuss the plan and get their input.

As we think about our growth and our future, please know that our mandate is clear. Even in this economy, we must ensure we have the best sales teams and the best tools across the country to serve our clients and grow our share of the market.

I came to Platform-A because I know this business has an incredibly bright future. And I know that working together, and working closely with our colleagues in MediaGlow and People Networks, we will realize that future.

Greg

AOL’s 2009 Goals

Dear AOL colleague,

This year marks the third of our three-year turnaround plan for AOL. Over the past two years, we’ve transformed the company and focused on three key growth businesses–MediaGlow, Platform-A and People Networks–positioning AOL to succeed over the long term.

Last year, we saw progress in each of these businesses. MediaGlow experienced sustained and healthy increases in users and engagement, proving we can grow our Web audience by creating experiences that appeal to people’s passions. Our People Networks unit embarked on a series of innovations and integrations that will set our social media experiences apart from the competition. On the advertising front, we integrated our acquisitions and made progress in other areas, although we continue to face challenges in premium display ad sales, which we are aggressively addressing.

If 2008 was about aligning our company against our core businesses, this year is about executing on our goals in what’s sure to continue to be a difficult market.

To succeed, we’ll need to continue operating as efficiently as possible, taking advantage of every available opportunity and remaining focused in a noisy marketplace. Our 2009 goals are designed to provide that focus. The goals may look familiar to you, which is a testament to the fact that our strategy over the past two years is the right one. As before, each of these goals will have specific metrics attached to them, which your business leaders and managers will be communicating in the near future.

Publishing. Over the past 18 months, we’ve reinvented our approach to programming, and as a result we’re successfully and efficiently reaching a younger and more valuable audience. This year, our new MediaGlow business unit will build on this momentum, launching 30 new edited niche sites and thousands of automatically programmed sites, creating original programming in our Los Angeles and New York studios and growing our audience worldwide, while continuing to enhance our ability to monetize our programming.

Advertising. Platform-A today offers advertisers easy access to the largest reach and the most sophisticated set of advertising tools available online, thanks to the integration last year of our seven advertising acquisitions. This year, we will build on Platform-A’s unmatched strengths to help marketers fully harness digital media to build brands and enhance online performance, worldwide.

Social Media. People Networks’ mission is to connect people with everyone and everything they care about. Last year, the group focused on integrating Bebo, AIM, ICQ, Goowy, Yedda, SocialThing!, Userplane and our other community properties, which combined reach more than 90 million worldwide. This year it will launch a series of innovations that leverage the strengths of this integration, starting this month with breakthrough updates to Bebo, and proceeding to a program to socialize the Web, updates to AIM and much more. In 2009, People Networks will create the most engaging and useful social media services available with the goal of making it simple for consumers to live their lives online.

Products & Technologies. In 2008, the Platforms team grew the Search business worldwide by more than 7% year over year and the MapQuest and Commerce & Marketplace teams showed strong profitability and feature innovation. At the same time, the global publishing and Relegence teams helped build out the systems that would become MediaGlow. The Products team focused its efforts on core products–Mail, Mobile, Desktop and Toolbars–that offered us the best opportunities for growth, while exiting dozens of underperforming ones. This year, the combined Platforms and Products teams will continue to innovate on these core products and services. The Technologies team will continue to improve our ability to launch and scale new sites and manage our data centers and network as efficiently as possible.

Access. Over the past two years, the Access team has done a remarkable job of managing this business, expanding margins, improving our ability to convert subscribers to free users and cutting costs, while maintaining the quality of the service. Access continues to be an important source of revenues and profit for the company, and this year, the team will continue to deliver in these areas.

Cost Management. Our efforts to effectively manage costs across the board have been a significant success, positioning AOL for the troubling economic times we currently face. In 2009, we will continue to look for ways to prudently manage our business and align costs with our ad-supported business. This isn’t just about cutting costs, it’s about smart resource allocation.

Living Our Values. Achieving our goals will mean nothing if we lose site of our company’s values. Living our values – integrity, collaboration, inclusiveness, outward focus, innovation – is a prerequisite to hitting our numbers. In 2009, we will continue to embody all of our company’s values and behaviors in everything we do.

You know as well as I do that this year will present us with new trials, new surprises and new opportunities. I’m confident that by working together, guided by these goals and our shared values, we’ll achieve much in 2009.

Thanks for everything you do every day to make AOL great.

Randy

Here is the letter AOL CEO Randy Falco (pictured here) has penned to the entire staff about layoffs of 10 percent of its workforce–or 700 people–and other cost cuts, which the online service is announcing today.

“We’re at a pivotal point in AOL’s transformation, and need to be even more strategically focused and operationally efficient as we weather the economic storm,” wrote Falco, in part, about the move.

As BoomTown reported earlier today, Time Warner (TWX) online unit AOL is making huge staff cuts, due to the weak economy and the ensuing deep falloff in advertising revenue, but also because of recent structural changes made to refocus the once-mighty service.

The layoffs will take place over the next several quarters, with most of the U.S. cuts to be completed by March. AOL has 7,000 employees world-wide, with most located domestically.

Here’s Falco’s letter:

Dear AOL colleagues,

I’m writing to tell you about some important decisions we’ve made about AOL’s business and why we’ve made them.

The deepening economic recession has affected every corner of the economy, including our own. Online marketers have tightened their ad buying across the board, reducing their spend by hundreds of millions of dollars.

As a result, we will be reviewing our entire organization to further align resources and expenses against the real revenue opportunities in this difficult market. Part of this will involve consolidating groups to gain efficiencies that will unfortunately lead to head-count reductions. We anticipate this will result in a net reduction of our workforce of up to 10% over the next several quarters–and we will attempt to finalize all domestic actions by the end of March. Reducing our workforce is never easy, particularly in the current climate, but our goal in doing this is to provide our core businesses the resources they need to thrive. Please know that, as always, we’ll be doing everything we can to help and support those affected, including offering severance packages and other services.

To further keep employment costs down, we will also forgo merit pay increases in 2009. This is a painful decision, but one that many companies have prudently taken to help minimize the number of layoffs they have to make.

To provide some perspective on these decisions, right now we’re two years into a three-year turnaround plan. Since day one, our strategy has focused on building and growing mutually dependent publishing, advertising and social media businesses to take advantage of the shifting media landscape. We’ve worked shoulder-to-shoulder to make considerable progress during this time.

We acquired best-in-class companies across the digital advertising space (AdTech, Third Screen Media, Lightningcast, buy.at, TACODA and Quigo, respectively) and integrated them with Advertising.com to build Platform-A, the largest, smartest display advertising platform in the world.

We grew our MediaGlow audience via an efficient content development model that in 2008 enabled us to launch more than 20 new sites that are generating significant page view (up 64% year over year in December), engagement (up 39% year over year) and unduplicated user (70+ million) numbers. This momentum will continue in 2009 with our goal of creating an additional 30+ editorially curated sites focused on consumer passion points.

We combined Bebo with our longtime community assets AIM and ICQ as well as newer acquisitions Goowy, Yedda and SocialThing, to build People Networks, gaining AOL a foothold in the critical social media space, with more announcements to come on the next phase of development in both the social media space and in the integration of social and publishing capabilities.

This progress continues to put AOL in a strong position to capitalize on our new business model when the recession ends.

In addition to focusing our investments, a successful turnaround plan also requires us to realign our cost structure against this three-pronged business model–making difficult decisions to cut costs in areas that aren’t critical to our growth. Splitting out the Access business improved the transparency of what’s working and what’s not, and allowed us to make better decisions about exiting businesses that weren’t performing while investing in growth areas. A successful turnaround plan also mandates we control costs, operate with healthy margins and position the company for sustainable growth. As you know, we’ve moved repeatedly to bring discretionary expenses in line to spare across-the-board job cuts.

But we’ve also had to make many hard decisions along the way. And this moment is no exception. We’re at a pivotal point in AOL’s transformation, and need to be even more strategically focused and operationally efficient as we weather the economic storm.

In addition to the head-count reductions and the 2009 merit pay decision, we are also making changes throughout the organization to improve efficiency and better align it to our three core businesses. This includes a review of our international operations and our global shared-services functions. In addition, we will continue throughout the year to carefully and thoroughly review all our products and services to make sure every one fully supports our strategy and has the potential for growth.

Finally, we are going to realize significant savings by continuing to consolidate our facilities–for example, moving from two buildings to one in Mountain View, from two floors to one in Los Angeles, and leasing unused space on our Dulles campus.

With these and other changes, we will take significant annual run-rate costs out of our business while, importantly, retaining the flexibility to invest in our growth strategy.

I know all this will raise questions, but I wanted to share as much as I could with you now. Senior management will provide more details as appropriate to their teams in the weeks ahead.

As difficult as things look right now, the economy eventually will turn around. Some companies will use this time prudently and make difficult decisions to come out of it in better shape–growing toward areas of opportunity, scaling back in others and maintaining a line on costs all around. Our only choice is to be one of these companies. With your continued hard work and dedication, we will position ourselves to emerge a stronger company ready to lead in a vibrant online market.

Randy

But while there are plenty of people–from Google (GOOG) on down–waiting for marketers to start shoveling money into phone advertising, it has yet to happen. And it’s certainly not going to happen in the next few years, as advertisers stick to markets they understand already. MediaPost:

Quentin George, president, global digital strategy and marketing innovation at Universal-McCann, agreed that marketers are likely to be less adventurous in exploring newer platforms in the midst of a severe downturn. Even if funding for more experimental campaigns doesn’t completely dry up, projects will take longer to complete. ‘A cool idea that might have taken two months to complete might now take six or nine months,’ he said.

The grim outlook for ad spending into next year is bad news for much-hyped categories such as mobile and digital out-of-home advertising. ‘With the economy the way it is, (mobile) is one of the least areas clients are going to be looking at because it’s more of a test-and-learn situation,’ Speciale said.

Bob Thacker, senior vice president of advertising and marketing for OfficeMax, compared mobile to soccer: ‘It’s popular in the rest of the world, but we haven’t learned how to play it yet.’ From a media-buying perspective, Matt Spiegel, CEO of Digital Omnicom Media Group Digital, added that mobile is ‘just complex to buy at scale.’ Couple that complexity with more austere budgets and mobile becomes even less desirable as an ad option.”

[Image Credit: aussiegall]

This should be a good place to gauge the state of the industry, but it’s also a dizzying one: There are a couple hundred booths and dozens of panels to navigate. So MediaMemo asked an ad:tech veteran for a guide: Mike Lazerow, whose Buddy Media specializes in getting big brands to advertise on social networks like Facebook and News Corp.’s (NWS) MySpace.

Lazerow’s first suggestion was to catch CNN president Jon Klein’s keynote this morning. But voting lines nixed that idea (suggestion for next time–Brooklyn district 91 needs more voting machines). Other highlights from Lazerow’s itinerary:

Another must-see keynote is the ‘state of the industry’ on Tuesday, moderated by Internet Advertising Bureau chief Randall Rothenberg. I usually stay away from any panel featuring five people with giant titles on the same stage together. But Randall is an uber-sharp strategist and thought-leader and promises to lead a compelling panel discussion that aims to cut through the noise of the digital marketing world.

… By far the most compelling Data panel is Wednesday’s ‘The Future of Measurement–How Do We Define the New Media Currency?’ David Hallerman, a senior analyst at eMarketer, hosts leaders of the major metrics firms, Nielsen Online, Hitwise, comScore, Quantcast and Microsoft’s Analytics and Atlas Institute. The focus of the panel will be how to create universal metrics to gauge the success and determine the pricing of all digital media that Google doesn’t hold a claim to. I encourage the panelists to grab a drink with each other afterward to move closer to common metrics. …

The ad network panel that will be most interesting is Thursday’s late-afternoon session ‘So Many Networks, So Little Time: Analyzing the Digital Network Landscape,’ hosted by David Joseph, head of the interactive entertainment research group at Morgan Stanley.

The real title of the panel should be ‘Online Ad Networks: Why There Are Too Many and Why They Will Be Out of Business Soon.’ While the world wants another ad network as much as I want my third heart surgery, these buy-siders will help sift through the confusion of the already over-crowded ad network space.

… For the most part, avoid all panels that have ‘innovation,’ ‘synergy’ and ‘dispatches from’ in the title. Stick with panels featuring companies that HAVE money (agencies, brands) and not companies that are selling solutions (startups, vendors and the major ad networks and sites). What matters is what the brands and agencies are buying, not what we want to sell them!”

And yes, Lazerow is on a panel himself: “Mobilizing and Leveraging Consumer Insights: Best Practices for the Digital and Social Media Age” kicks off at 2:45 p.m., and he assures me the discussion will be more interesting than the name. See you there.

That’s more than 10 times its revenue last year, and, yipes, close to 50 times its cash flow. And that is double what the Seattle-based parent company to Avenue A | Razorfish was worth on the public market just before the acquisition, a figure that has already been bid up by all the recent activity in the market.

That includes Google’s $3.1 billion bid for DoubleClick, Yahoo’s $680 million to buy the rest of Right Media and WPP Group’s acquisition this week of 24/7 Real Media for $649 million. And, by the way, AOL bought a German-based online ad company called Adtech this week, too.

If you don’t know what to make of all this, consider yourself in the majority, as these prices seem–let’s just come out and say it, as we are not investment bankers–insane. In fact, the general Internet acquisition market feels to me a lot like the wacky IPO market back in the height of the bubble, where you were often slack-jawed by the rising stock prices for companies with no visible means of comparable growth.

But before I get going on that rant, at least the big players are overpaying in a market that I think we can all agree is one that is just at its most early stages. Here’s why:

1. Spending by big advertisers online lags well behind what many call “audience engagement.” In other words, time spent on the Web has obviously been growing and taking share away from traditional media. But spending online, though fast growing at about $20 billion this year, has not kept the same pace.

2. The time to act, then, is now, to lock up any and all available assets in this space, especially ones that give the buyer a big market share and critical mass. The three biggest online ad players, Google, Microsoft and Yahoo, have snapped up the three biggest independent online ad agencies.

3. As more ad spending shifts online, the ability to have expertise and to innovate quickly will become critical. What all these companies are buying–besides stronger relationships with advertising clients–are people and experience.

4. Most of all, there was no way Microsoft was not going to answer Google after it bought DoubleClick, especially if it wants (and it does) to stay competitive with the search giant in the online ad market. Given that its talks with Yahoo about some sort of partnership (as I have said before–please don’t) have not borne fruit (as eager as, I am sure, Microsoft ‘s Steve Ballmer would like to make that announcement), such a move by the company seemed inevitable.

Could they resist? I think not.

Please see this disclosure related to me and Google.