aol-chart8

Strong Domestic Display Growth for AOL in Q2

  |  August 9, 2011   |  Comments

Google also had a positive Q2, as Yahoo slumped.

AOL reported strong display ad revenue growth and an overall revenue increase of 5 percent in Q2. Reporting its second quarter 2011 earnings this morning, AOL said ad revenue rose 5 percent from $304.7 million in Q2 2010 to $319 million in Q2 2011. Google also had a positive Q2, as Yahoo slumped.

Display advertising rose 14 percent overall at AOL, from $121 million in Q2 of last year to $137.6 million in Q2 this year. Domestic display far outpaced that of its international business, increasing 16 percent compared to a 10 percent drop in international display. International display fell in part because of the 2010 selloff of social net Bebo.

AOL said premium display ad pricing rose, noting that its HuffingtonPost and TechCrunch acquisitions helped boost prices. "In premium formats, the total number of Devil ad impressions served and the number of third party publishers using the Pictela platform grew more than 100% versus Q1 2011," noted the company in a press release.

aol-chart8

Google also reported strong earnings this quarter. The company in July reported a 32 percent rise in revenues during Q2 2011 compared to the second quarter 2010. Meanwhile, Yahoo had a disappointing quarter, reporting soft display revenues as a result of sales organization changes and struggles.

This was the first quarter AOL grew its global ad business since Q2 2008, it said. Still, partially a result of continued decline in AOL's subscription revenues, total revenues fell 8 percent from $592.2 million to $542.2 million.

The third party network business also showed promise, bolstered by a 29 percent leap in revenues year-over-year, from $72.4 million to $93.6 million. Ad.com grew 15 percent, while acquisitions of 5 Minutes Ltd and goviral A/S also contributed.

AOL's search and contextual ad revenue fell 21 percent, reflecting the company's decision to steer away from these formats towards display and other more premium ad products.

In July, AOL's top ad sales exec Jeff Levick left the firm. As a result, AOL promoted Ned Brody as chief revenue officer and president of AOL Advertising, a newly-created role. At the time, CEO Tim Armstrong said the change reflected the company's mission to offer a "unified premium strategy for advertisers and publishers," produce "consistent growth in advertising spend across all our properties and networks," and take a "more rigorous approach to advertising and publishing system design."

Tags:

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, Oct 3 to take advantage of Early Bird Rates!

ABOUT THE AUTHOR

Kate Kaye

Kate Kaye was Managing Editor at ClickZ News until October 2012. As a daily reporter and editor for the original news source, she covered beats including digital political campaigns and government regulation of the online ad industry. Kate is the author of Campaign '08: A Turning Point for Digital Media, the only book focused on the paid digital media efforts of the 2008 presidential campaigns. Kate created ClickZ's Politics & Advocacy section, and is the primary contributor to the one-of-a-kind section. She began reporting on the interactive ad industry in 1999 and has spoken at several events and in interviews for television, radio, print, and digital media outlets. You can follow Kate on Twitter at @LowbrowKate.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Media newsletters delivered right to your inbox. Subscribe today!

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.

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising

An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.

Jobs

    • Tier 1 Support Specialist
      Tier 1 Support Specialist (Agora Inc.) - BaltimoreThis position requires a highly motivated and multifaceted individual to contribute to and be...
    • Recent Grads: Customer Service Representative
      Recent Grads: Customer Service Representative (Agora Financial) - BaltimoreAgora Financial, one of the nation's largest independent publishers...
    • Managing Editor
      Managing Editor (Common Sense Publishing) - BaltimoreWE’RE HIRING: WE NEED AN AMAZING EDITOR TO POLISH WORLD-CLASS CONTENT   The Palm...