As a lot of blind people use Earthlink, I thought the following would be
of interest.  In previous articles, the CEO of AOL Time Warner, Richard
Parsons, who is an attorney, and other company executives, have
aggressively argued that AOL users have little interest in high speed
connections and for the most part are satisfied with dial up service.  As
a DSL user, I love it and enjoy the easy access to audio information on
the Internet.

Kelly


Chicago Tribune


Earthlink's spin focuses on speed

Goal: Steal from AOL, other ISPs

By Jim Kirk

Tribune marketing columnist

August 18, 2002

If AOL is king when it comes to the Internet, then Earthlink is about to
attempt a coup d'etat.

On Monday Earthlink will unveil its most aggressive advertising and
marketing campaign. The estimated $20 million campaign signals a dramatic
shift in strategy for Internet service providers: It's less about finding
new users and more about raiding their competitors.

As moredial-up Internet users jumpto the much faster broadband where
available, the fight for the remaining tens of millions of dial-up users
has intensified.

Growth rates of new Internet subscribers hovered in the double-digit
range as late as 2001, but Jupiter Research estimates that the number of
households using a dial-up service is already plateauing at roughly 52
million. The New York-based market research firm expects the number of
dial-up users to decline after 2004 as more customers jump to broadband.

"ISPs [Internet service providers], particularly in the dial-up business,
face a few big challenges," said Ken Cassar, a senior analyst with
Jupiter. "We estimate that 20 percent of online access now is through
broadband. That will only grow as more people get access to broadband."

So far, broadband penetration has been slow, and that means it's a race
for market share.

For troubled AOL, whose parent AOL Time Warner's accounting is under
scrutiny by federal authorities, Earthlink's new campaign only means more
headaches.

The promise of major advertising revenue never materialized for Internet
service providers, leaving them to depend more on subscribers for their
steady revenue stream. So the thought of losing customers, especially for
AOL, is sobering. Its 34 percent market share overshadows Microsoft
Corp.'s MSN unit, which is second in market share with 16 percent, ahead
of Earthlink with 6 percent.

Earthlink hopes to change that.

The new campaign from Chicago-based LB Works, a unit of Leo Burnett, uses
humor to develop a personality for the Earthlink brand, and takes a shot
at slower ISPs at the same time.

In one spot, a father gets exasperated when his kids start peppering him
with a familiar car trip refrain.

"Dad, are we there yet?" says one. "Dad, are we there yet?" chimes in the
other.

Looking frustrated, the father says: "If you two don't clam up, dad's
going to lose it. Big time."

When the camera pulls back, it is revealed that the dad is not driving a
car, but sitting at the computer waiting for his dial-up modem to get him
there. "We'll get to the Internet when we get to the Internet," he says.

Using research that showed, not surprisingly, that people hate to wait in
line, Earthlink will introduce a new tag line: "Why wait? Move to
Earthlink. "It's a question that can get on the tip of your tongue," said
Steffan Postaer, chief creative officer of LB Works. Another spot takes
the most direct shot at AOL. A frustrated online user starts making video
game shooting noises as he tries to shoot down dozens of pop-up ad boxes
while online. At the end of the spot, he says, in a pointed reference to
AOL's 7.0 software: "7.0 ... 7 point this."

The new campaign is a departure from Earthlink's old ads, which focused
on privacy issues regarding the Internet. Privacy remains a customer
priority, but not as high as speed to access, Earthlink executives said.

"The dial-up market is flattening. And when you have a flat category,
it's much more about stealing share," said Karen Gough, executive vice
president of Earthlink. "We think we've come up with a very memorable,
fun, tongue-in-cheek campaign. But it's also is a real call to action.
That was the intent."

"There are a bunch of reasons people get online and why they change
ISPs," said LB Works president Jeff Jones. "Privacy is one issue, but not
the only issue."

Earthlink also on Monday unveils its new software that it says simplifies
the installation process.

The Total Access software will allow customers to tailor more online
functions, the company said.

Other new customized products are expected to roll out over the next
several weeks, which also helps raise the stakes in the dial-up arena.
Most industry watchers expect AOL and MSN to begin offering enhancements
to their services.

Still, the new campaign by Earthlink and recent stepped-up efforts by MSN
to target AOL, couldn't come at a worse time for AOL Time Warner.

Last week the company disclosed that AOL might have overstated revenue in
three deals totaling nearly $49 million over 18 months. That disclosure
came as top AOL Time Warner executives certified the company's financial
results.

In a memo to staff members last week, Richard Parsons, CEO of AOL Time
Warner, said a new structure at the company's AOL division was coming.

"In addition, with Don Logan and Jon Miller, our new chairman and CEO of
America Online, we are putting some enhanced controls in place," Parsons
wrote.

But Earthlink won't just sit back and wait for AOL to regain its footing.
With its new campaign that faster is better, Earthlink is betting that it
has hit on the right formula.

Said LB Works' Postaer: "I've never found a person who has been happy
waiting for something."


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