Sherman, formerly the president of ad sales at Time Warner Cable, will replace Robert Friedman, who will become senior vice president of corporate marketing at parent AOL Time Warner.
AOL Time Warner has been feeling the heat from Wall Street for problems at AOL, including a sharp decline in advertising revenues. Wall Street has been concerned that AOL's revenue strains will continue to weigh on the company, regardless of the performance of AOL Time Warner's cable, movie, TV, music and publishing divisions.
Earlier this month, Barry Schuler handed over AOL's reins to AOL Time Warner co-Chief Operating Officer Bob Pittman. In February, Jonathan Sacks, AOL president of interactive services, to pursue personal interests. A month later, AOL appointed radio veteran Jimmy de Castro to take on Sacks' responsibilities in running the AOL flagship service.
Sherman will report to de Castro.
In a statement, Pittman said the division will "have a seasoned team to accelerate our efforts to reach advertisers and agencies and work with them to fully capitalize on our relationship with our 34 million members."
Before Time Warner Cable, Sherman was executive vice president of NBC's radio stations and had worked extensively in ad sales in the radio industry.
Friedman, the outgoing executive, will work closely with AOL Time Warner's marketing and advertising councils to develop promotions across the company's many media properties. Friedman will report to AOL Executive Vice President Mayo Stuntz.