AOL UK calls review of 25m ad account

AOL UK is reviewing its £25m advertising account, held by Grey London, following the sale of its internet business to Carphone Warehouse last month.

Grey, which is currently involved in rival BSkyB’s advertising review, has a contract that runs until the end of this year, when AOL is expected to call a pitch.

Clemmow Hornby Inge, which handles Carphone Warehouse’s advertising account, is likely to pick up the internet access business as part of the £370m takeover, while the pitch will focus on AOL’s web portal business. However, AOL’s media spend is expected to drop significantly as a result.

The AOL deal makes Carphone Warehouse the third-largest supplier of broadband in the UK behind BT and NTL:Telewest, which is to become Virgin Media early next year.

Last week, AOL Europe president Karen Thomson stepped down after 11 years at the company. She was responsible for launching AOL in the UK in 1996. The UK business is consulting staff over possible redundancies, with as many as one-fifth of its 500 staff leaving. An announcement is due in mid-December.

The Time Warner-owned internet brand has also sold its internet access businesses in Germany and France.

Media planning and buying for AOL is currently handled by Vizeum. It is not yet known if the account will be put up to pitch or handed to Carphone Warehouse’s agency Matters Media.