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If content is king, then Heidi Klum is AOL’s new queen.
The Internet pioneer is partnering with the “Project Runway” host to generate a whole host of material to post and broadcast online. It’s AOL’s latest partnership to boost its offerings, and comes at a time when interest in Web content is surging.
For AOL, the move with Klum follows cutbacks to its staff and a move to outsource more content production.
Separately, Demand Media, a prolific creator of stories and videos for various Web sites, which sold its initial public offering above its forecast range, yesterday soared 33.2 percent in its first day of trading. Demand’s shares were priced at $17 a share and closed at $22.65.
Demand Media’s flagship property, eHow.com, is a “tremendously fast-growing Web site,” according to Scott Sweet, the senior managing partner at IPO Boutique. The site is written by anonymous freelancers who provide how-to stories on a variety of topics.
The sharp run-up in Demand’s share price gave the young company a market capitalization of about $1.5 billion — roughly equal to the New York Times.
Traffic to the eHow site is driven by people conducting searches online, and gives advertisers a direct look at consumers’ interests.
“Demand Media has been a long-awaited IPO. It’s one of the most highly hit sites on the Internet,” Sweet said. “It’s a thorn in the side of Google, AOL and Yahoo.”
AOL has made a number of deals recently to increase its content in niche areas to appeal to different slivers of audiences from tech geeks to moms. The company said its strategy with Klum was to reach women, who are an underserved demographic online.
“AOL is becoming more sophisticated in tiering the content based on advertiser demand,” said Ken Sena, an analyst with Evercore Partners.
Analysts are still not convinced of AOL’s strategy as it cuts deals to generate more Web content, but hasn’t proved it can capture a bigger slice of online ad revenues. The company reports earnings next week.