Ad Revenue Up Ahead of AOL Portal Launch

  |  August 3, 2005   |  Comments

Time Warner plays up the beta launch of its public portal, particularly its runaway success with Live 8.

Time Warner's AOL unit lost nearly a million subscribers last quarter, around four percent of its total base. Ad revenues, however, were up 45 percent to $320 million.

The company said it set aside $3 billion to settle shareholder litigation over its disastrous merger with the online unit.

AOL brought in total revenues of $2.1 billion, down from $2.2 billion for the year ago period, as dial-up subscribers over age 15 fled in droves. The positive news on the advertising front was earnings of $30 million from paid search and $60 million from its Advertising.com unit.

Executives repeatedly referred to the beta launch of the public AOL.com portal in June, as well as its breakaway success with the Live 8 concerts.

"AOL is positioning itself to take advantage of the same broadband trends that are currently benefiting cable," said Chairman and CEO Dick Parsons. "Live 8 demonstrates how large audiences are starting to use this medium. "

Presumably based on its success with Live 8 last month, the company estimates the streaming event on-demand audience can be five to 10 times larger than Live 8's. MSN execs have made similar remarks about the power of live event streaming online.

Parsons added, "Although it's still early days, we have every reason to be optimistic that this audience-driven strategy will be very successful."

AOL's AIM instant messenger platform continues to grow. Execs called it an important channel for audience growth across all its properties. The company wants to improve its ad sales operation across its whole network with the goal of raising CPMs on all its sites to the higher level AOL-branded sites currently command.

Total revenues for Time Warner declined one percent to $10.7 billion, and the company reported a net loss of $321 million, or $.07 per share.

ClickZ Live Toronto Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!

ABOUT THE AUTHOR

Zachary Rodgers

Until March 2012, Zach Rodgers was managing editor of ClickZ's award-winning coverage of news and trends in digital marketing. He reported on the rise of web companies, data markets, ad technologies, and government Internet policy, among other subjects. 

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

ion Interactive Marketing Apps for Landing Pages White Paper

Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.

eMarketer: Redefining Mobile-Only Users: Millions Selectively Avoid the Desktop

Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?

Jobs

    • Contact Center Professional
      Contact Center Professional (TCC: The Contact Center) - Hunt ValleyLooking to join a workforce that prides themselves on being routine and keeping...
    • Recruitment and Team Building Ambassador
      Recruitment and Team Building Ambassador (Agora Inc.) - BaltimoreAgora, www.agora-inc.com, continues to expand! In order to meet the needs of our...
    • Design and Publishing Specialist
      Design and Publishing Specialist (Bonner and Partners) - BaltimoreIf you’re a hungry self-starter, creative, organized and have an extreme...