RealTime IT News

AOL Mexico, Burger King Launch Promo

AOL Time Warner subsidiary AOL Latin America announced on Tuesday a marketing campaign involving AOL Mexico and Burger King.

The customer-loyalty promotion will feature a contest on AOL Mexico in which Burger King customers have a chance to win a trip for two to Spain for a concert by the popular Spanish band (and Warner Music talent) Hombres G, in addition to other prizes.

The six-week promotion will be part of a six-month campaign that will feature a series of Burger King promotions to leverage the strength of both AOL Mexico and AOL Time Warner's offline media properties, such as Warner Music. Burger King customers will be encouraged to enter the contests through a special "AOL-Burger King" area on AOL Mexico.

To help entice Burger King customers, some restaurants will have on-site promoters to encourage customers to give AOL Mexico a try. Burger Kings will also carry AOL CDs.

The arrangement also joins together two brands in transition. AOL has floundered since the collapse of its advertising business in the wake of the dot-com meltdown, with the promised synergies with Time Warner's media properties failing to pay off. Recently, AOL has announced a series of cross-media marketing initiatives, including a $30 million cross-media deal with Dutch bank ING. Company executives have tabbed deals like these as key to reviving its ad business.

AOL Latin America has mirrored the problems of its U.S. parent. Earlier this month, the company reported lower revenues from the same period a year earlier due primarily to a 46 percent decline in advertising sales. AOL Latin America did manage to trim its losses, but still managed to lose $31.2 million in the quarter

Burger King has also faced sluggish sales, as the No. 2 fast food chain's profits have eroded due to the industry's drive for cut-rate menus. Earlier this month, Burger King shifted gears, eschewing its long-time "flame-broiled" trademark in favor of the "fire-grilled" moniker in a new marketing strategy that seeks to emphasize its food quality. The company plans on revamping its customer service and adding healthier menu choices in further moves to stem lagging sales.