Puneet Mehta of Street Fight Magazine recently wrote, “To meet the promise he made to shareholders, AOL’s chief executive Tim Armstrong is in the process of cutting staff and other costs at Patch in the hopes that his network of hyperlocal sites will be profitable by the end of 2013. His moves may get Patch into the black, but the company must also make substantial strategic changes if it hopes to build a sustainable business. But just making short-term cuts to hit profitability might not be the optimum choice. Patch also has to plant seedlings for mid- and long-term benefits that the company can reap 6-12 months from now. Here are six approaches that Patch can take to patch itself up.”

One of those strategies is to bring together content and advertising with semantic technologies: “Patch is currently only personalizing content and advertising by location, which is not very personal. All media brands need to deliver the right content and ad at the right time and within the right context to the right person. To do this, Patch needs to build user profiles and interest graphs based on a reader’s personal history with content, online and on mobile, while also combining semantic, sentiment and virality scores to ensure relevance. The news organization also needs to leverage predictive analytics to anticipate how certain content will resonate with specific reader segments as well as the time/day/frequency that would be the most effective. By tapping into profiles and interest graphs, and applying predictive analytics, Patch would be able to personalize the news reading experience by anticipating which articles and advertiser messages each reader would want in their news feed or push alert.”

Read more here.

Image: Courtesy AOL