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Tuesday July 27, 2004

ISP War, the Need for Speed

NEW YORK, NY -- (MARKET WIRE) -- AXcess News published a story covering the cut throat marketing tactics of ISPs in what some liken as an all out war for customers, have been spending millions on ad campaigns depicting faster access speeds in the hopes of luring away accounts.

EarthLink, Inc. introduced its EarthLink Internet Accelerator in January 2004 while Time Warner, Inc. leaped into heavy marketing of its AOL TopSpeed across television, print, radio and web.

Portland-based advertising agency, Wieden & Kennedy, was awarded an estimated $50 million branding contract with AOL in June 2003. W&K created a high-profile campaign for the Internet service provider in 2004 to coincide with Super Bowl XXXVIII.

Wieden & Kennedy canceled their contract Monday, citing creative differences. In a telephone interview late Monday, W&K would not comment on their decision.

The New York agency of BBDO is credited with creating the yellow figure of a man who runs faster in AOL's ad spots that have gone long to provide the ISP results.

Both AOL and EarthLink have benefited by promoting high-speed internet access through the use of acceleration technology. EarthLink announced Monday that its board of directors had approved increasing its share buyback program, adding $100 million to bring the total share buyback to $145 million.

In the quarter ended June 30, EarthLink earned $49.6 million, or 31 cents a share, on revenue of $348.6 million. In the same period last year, it reported a loss of $15.3 million, or 10 cents a share, on revenue of $352.2 million.

EarthLink added 31,000 net subscribers in the second quarter for a total of 5.3 million subscribers, compared with just over 5 million a year ago.


Read complete article at: Market Wire News 

Source: AXcess News is fast becoming a known commodity for both the serious investor and people in general looking for informed articles and insightful columns
 

 

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