America Online Latin America -- which provides Internet service and content in Brazil, Argentina, Mexico and Puerto Rico -- continues to suffer, losing more than half its members last year. It also posted a net loss for the fourth quarter of 2003, partly because of a drop in ad revenues.
European marketers for some years now have widely used mobile phone short messaging services for marketing purposes in connection with SMS activities such as games, shopping and maps. US Cellnet Information and London-based One World Interactive are now planning to jointly take this marketing concept to the United States.
Starcom, a buyer of children's TV advertising inventory, said it will allocate a substantial part of its budget to broadband video sites, including those affiliated with Nickelodeon's Nick.com. "What we're trying to do is expand the definition of TV advertising into broadband," says John Wagner, Starcom's media director.
Increased broadband deployment could provide new opportunities for advertisers, especially in the 18-34 demographic so desired by advertisers. Moreover, broadband could breathe new life into the 30-second spot, which has been threatened by the popularity of DVRs, by allowing advertisers to run complete commercials on the Web.