Ivey, who joins next week, will be responsible for maximising advertising revenues on the AOL ISP service, as well as managing the business development and agency sales teams.
Kramer left AOL in May to return to Dow Jones to take up the role of advertising director of The Wall Street Journal Europe.
With online's share of the advertising market growing, AOL continues to turn to traditional media specialists as it positions itself alongside television, radio and print as a preferred medium for advertisers.
Ivey steps into his new role next week and will report to Andy Jonesco, the former managing director of Express Newspapers who has been vice-president of interactive marketing since May 2002.
"Having worked at a senior level in radio at a time when it experienced significant growth, Giles is in an excellent position to grasp the online sector and to successfully translate the AOL offering to mainstream advertisers. Furthermore, his knowledge of agency sales will be crucial as more and more agencies recognise that the internet must be central to their clients' media strategies," Jonesco said.
Ivey, who worked for Capital Radio before joining Virgin, already has experience working online from a spell at search engine .
"Online has returned to its place as the fastest-growing advertising medium in the UK, so this role really captured people's interest," Jonesco said. "The applicants were of extremely high calibre and we are delighted that Giles will be joining us to lead our sales team and drive our advertising revenues."
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