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August 12, 2008 5:51 AM PDT

AOL works affiliate marketing into widgets

by Caroline McCarthy

AOL's Platform-A subsidiary is now bringing affiliate marketing to widget ads. If that sounds like a lot of media speak, that's because it is.

To power widget ads, AOL acquired start-up Goowy in February, and it has already worked the acquisition into Platform-A. As part of Tuesday's announcement, Goowy's technology has been officially incorporated into Buy.at, an affiliate network that AOL also acquired earlier this year.

"Once a publisher places a widget on their Web site, consumers can grab it and distribute the widget to other locations on the Web, including social-network pages, desktops, and blogs," a release from AOL explained. "The publisher earns revenue for each sale driven by the widget, even if it's several download generations away from the publisher's site."

AOL has made many significant advertising announcements in recent months as part of its refocus on online media, but it's still having a rough time as a subsidiary of Time Warner.

While AOL's ad revenues were up 2 percent in the second quarter of 2008, it wasn't enough to make up for losses at its once-powerful access service--which Time Warner plans to spin off.

Caroline McCarthy, a CNET News staff writer, is a downtown Manhattanite happily addicted to social-media tools and restaurant blogs. Her pre-CNET resume includes interning at an IT security firm and brewing cappuccinos. E-mail Caroline.
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by benjaminstraight August 12, 2008 9:36 AM PDT
AOL is desperate.
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About The Social

CNET News' Caroline McCarthy is a downtown Manhattanite who believes that, despite popular opinion, the Web can actually help your social life. She's happily addicted to fun social-media tools from Twitter to Yelp to Facebook, sends an inordinate number of text messages, and has a tendency to waste time at the office reading restaurant blogs. Here, she explores all facets of the Web's gregarious side, as well as the unique tech culture in her home city of New York. (Don't call it Silicon Alley.)

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