AOL to Run Ads on Welcome Screen

America Online will start offering advertisers space on its welcome screen beginning next month.

AOL is looking to the ads to increase its advertising revenue, which fell 40% to $1.6 billion in 2002 and expected to continue to decrease another 50% in 2003, according to CNN/Money.

Some 35 million users see the AOL welcome screen when they log onto the Internet service provider. Ads will also appear on the sign-off screen and next to search results.

AOL lost subscribers for the first time in the fourth quarter, and, in an attempt to retain users, eliminated pop-up ads in October.