There's been a piece of good news for America Online. Shares in the company jumped $4 (#2.50) one afternoon last week after the company announced it will open its chat rooms to advertisers - a plan that could generate up to $500 million a year in revenues.
AOL officials said that advertisers will be able to buy banner ads in sponsorship of chat rooms. The ads could potentially reach 70% of AOL members, who together spend 600,000 hours a day on the service's discussion areas.
The company will offer ad slots that will rotate every 60 seconds, using a new software technology for displaying banner advertisements.
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