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 Chicago Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, August 29 to take advantage of Super Saver Rates!

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

IBM: Social Analytics - The Science Behind Social Media Marketing

IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

Resources

Jobs

    • Partnerships Senior Coordinator
      Partnerships Senior Coordinator (Zappos.com, Inc.) - Las VegasZappos IP, Inc. is looking for a Partnerships Senior Coordinator! Why join us? Our...
    • Assistant Product Listing Ads (PLA) Manager
      Assistant Product Listing Ads (PLA) Manager (Zappos.com, Inc.) - Las VegasZappos IP, Inc. is looking for an Assistant Product Listing Ads (PLA...
    • Marketing Technology Analyst
      Marketing Technology Analyst (Alfred Music) - Van NuysMarketing Technology Analyst DEFINITION Under the general/direct supervision of the head of...