You've Got Mail: A History of AOL's Free Trial CDs
In the early 1990s, the internet was still a mystery to most people, with many viewing it as nothing more than a passing fad. These were the days when Bryant Gumbel and Katie Couric used to hold court over the meaning of the "@" sign on live television—so how was a company like AOL supposed to convince people to connect to the vast, scary world wide web when most of America didn't even own a computer? They gave it away for free, of course.
In order to propel the world into the digital future, AOL first had to take a step back into the past. Eschewing the expensive TV commercials and marketing campaigns other web providers like Prodigy were running, AOL spread the word about its internet service through people's mailboxes. The idea was the brainchild of Jan Brandt, the company's chief marketing officer. She was brought to AOL to increase the company's subscriber base, and her idea in 1993 was simple: Use the antiquated strategy of direct mail campaigns to get free trial discs—originally floppy and later CDs—straight into the hands of consumers. This would, in theory, lead to a paying customer once that trial expired.
In those days, people didn't really know what the internet was, so it was proving difficult to explain it succinctly through a commercial, billboard, or print ad. It was much more effective to let customers try it firsthand during a free 500-, 750-, or 1000-hour trial. Brandt talked about why the physical package was so important to the campaign in an interview on the Internet History Podcast:
"It was my absolute belief that you could not send someone a package in the mail—and I don’t mean an envelope, I mean a package that you could feel—and not open it. I felt that it was constitutionally impossible for someone to get a small box in the mail and not be inspired to open it."
The first campaign in its initial, smaller market cost $250,000 to get off the ground in the spring and summer of 1993. While most direct mail campaigns are lucky to get a two or three percent response rate, Brandt's idea yielded 10 percent. People weren't just using the trials, they were signing up for AOL's services and becoming paid subscribers in droves. As the campaign expanded into new markets, the discs moved beyond just mailboxes.
It all started when AOL teamed up with Blockbuster to give their discs away to customers; soon after, the dam had burst, as people were suddenly besieged with discs everywhere they turned. They were at Best Buys and Barnes & Nobles, tucked inside magazines, in people's morning cereal box, on their fast food trays—pretty much anywhere eyes would be, a disc wouldn't be far behind. One of the stranger stories from AOL's "carpet bombing" strategy came when the company found out that freezing and thawing these discs wouldn't cause them any damage. Why? So they could be packaged with Omaha Steaks, of course.
Though some of the locations these discs wound up in can cause a chuckle, the raw numbers behind the campaign are almost hard to fathom. It has been estimated that, at one point, 50 percent of all CDs produced had the AOL logo on them. And remember, this was at a time when people were still actually buying CDs. It wasn't abnormal for a person to receive multiple free discs per week simply by being amongst the living. Though most of these ended up being discarded, turned into frisbees, or used as coasters, the numbers game was still in favor of AOL.
Despite hundreds of millions of dollars—maybe even billions, according to Brandt—spent on CDs (at about $1.50 a pop), and countless discs winding up underneath sweaty beverages nationwide, AOL was growing, its subscriber base was booming, and the company was becoming synonymous with the internet itself. According to some estimates, AOL spent about $35 on every new customer with these discs, and they eventually got to a point where they were registering a new user every six seconds, turning AOL into a $150 billion company in a matter of years.
"When we went public in 1992, we had less than 200,000 subscribers," former AOL CEO Steve Case said. "A decade later the number was in the 25 million range."
It turns out, the death of the AOL trial discs was caused by the internet itself. As the company changed its strategy and stopped charging by the hour and introduced broadband services, the discs had less of an impact as churn rates rose. Other providers were coming along with better, faster alternatives, and AOL soon started falling behind its competitors. By 2006, the disc campaign was being phased out, as customers' online habits changed—though there are still an estimated 2.1 million users clinging on to AOL's near-extinct dial-up technology.
Interestingly enough, in recent years, these discs—which were once just about everywhere—have become something of a collectible, with some zealots hoarding thousands of them for some sort of higher purpose. Museums have even put them on display, recognizing the importance the early floppy disks and CDs played in people taking their first steps into a more connected world.
In the years since the end of the campaign, these AOL trial discs have joined the ranks of JNCO jeans, boy bands, and Beanie Babies as strange relics of the what-were-we-thinking '90s. Though they're worthless now, they played a big role in the internet boom of the last 25 years.