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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared Hong Kong film hopes to break new ground with 3-D porn 16 Aug 2010 Obama campaigning, ties Republicans to big business 2:36am EDT Axl Rose's Twitter page hacked 12:51am EDT Analysis: Running with the bulls: a rosy view of China in 2020 16 Aug 2010 Dolph Lundgren flexes box office muscle 1:39am EDT RPT-UPDATE 1-Australian c.bank faces makeover after election 12:06am EDT Europe Factors - Shares seen rising; data eyed 1:24am EDT Fund managers make big bets on oil stocks 16 Aug 2010 Air strike kills al Qaeda cell leader in Afghan north | Video 16 Aug 2010 GM IPO filing expected Tuesday | Video 16 Aug 2010 Hong Kong film hopes to break new ground with 3-D porn 16 Aug 2010 Axl Rose's Twitter page hacked 12:51am EDT Analysis: Running with the bulls: a rosy view of China in 2020 16 Aug 2010 UPDATE 2-RIM to give India partial BlackBerry access -source 16 Aug 2010 Afghanistan says finds 1.8 billion barrel oilfield 15 Aug 2010 Ex-governor says California must reform pensions 16 Aug 2010 Scientists find new superbug spreading from India 11 Aug 2010 Vying to be Miss Universe 16 Aug 2010 Russia's Medvedev asks tycoons for wildfire help | Video 16 Aug 2010 FOMC statement from August 10 meeting | Video 10 Aug 2010 AOL to launch 500 more local sites this year Digg This Tweet This Share on LinkedIn Share on Facebook Related News UPDATE 2-Demand Media files for IPO of up to $125 mln Fri, Aug 6 2010 Media companies rebound on ad recovery Wed, Aug 4 2010 UPDATE 4-Time Warner raises outlook as ad spending improves Wed, Aug 4 2010 UPDATE 2-AOL posts loss on Bebo charge, revenue drops Wed, Aug 4 2010 CBS results beat, sees boost from political ads Tue, Aug 3 2010 Related Topics Technology » iPad » Media » By Jennifer Saba NEW YORK | Tue Aug 17, 2010 12:06am EDT NEW YORK (Reuters) - AOL Inc is gearing up to launch an additional 500 websites under the Patch umbrella this year, part of a broader effort to remake itself as a destination for users seeking maps, reviews, and a grab bag of other local content. AOL, which is trying to move past its roots as a dial-up Internet service provider, has launched 100 of these local sites so far and plans to spend more than $50 million to initiate hundreds more this year. The move, announced on Tuesday, is part of the company's turnaround strategy conceived when it spun off from Time Warner Inc after a disastrous 10-year marriage. AOL has been since shedding properties like the social networking site Bebo, streamlining its sales force and rebuilding its ad platform to capture more marketing dollars. "We think local will be an important part of future," said Chief Executive Tim Armstrong, who was an original investor in Patch before he joined AOL from Google Inc. Jon Brod, executive vice president for AOL Local and a Patch founder, said that as traditional media struggles there is chasm of quality information at the community level. "That is the need Patch is filling," Brod said. Think of the Patch sites as an online-only community newspaper led by a professional journalist who oversees a handful of freelancers who cover everything from neighborhood crime-related events to gallery showings. "If we build this infrastructure now as the economy improves people are going to be conditioned to use Patch to really get their message out," said Warren Webster, president of Patch. AOL is eyeing $20 billion of local online advertising dollars, he said. "It's the largest commercial opportunity that has yet to be won," Brod said. Brod said AOL first wants to concentrate on increasing Patch readership as its sales team hunts for three types of advertisers: small, locally owned businesses, banks and auto dealerships, and national advertisers interested in targeted buys. "I like what they are doing," said Douglas Anmuth, an analyst with Barclays Capital. "It's still very very early and still in investment mode." Patch is just one part of AOL's content offering, which also includes Seed, a platform that relies on user-generated material on popular topics, and several popular topic-specific sites like Engadget, which is dedicated to consumer electronics and tech gadgets. AOL is in good company. Yahoo Inc is also staking a claim at being a go-to source for information, snapping up journalists, striking deals with several hundred newspapers and buying user-generated content site Associated Content. Demand Media, a rival to AOL's Seed, earlier in August filed with regulators to raise up to $125 million in an initial public offering [ID:nSGE6750KG]. Also vying for those same dollars are countless newspapers, local TV stations, directories, and online news sites including the Huffington Post. Andy Chapman, leader of digital trading at Mindshare, a media agency that buys advertising on AOL on behalf of many of its clients, says there is a lot of interest and promise in local marketing. "It's not clear to me whether there is enough interest," he says about AOL's Patch. "The jury is still out." (Reporting by Jennifer Saba; Editing by Steve Orlofsky) Technology iPad Media Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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