Global display ad revenue grew 15 percent last quarter, helped by sales org changes and video ads.
AOL's global display ad revenue grew 15 percent in Q4 2011, driven by growth in both the U.S. and overseas and special strength in the ad network business. Additional factors were changes to the sales organization, tech enhancements, and strength in mobile and video demand. AOL says its video views, video ad impressions, and revenue grew at double-digit rates last quarter over the same period in 2010.
On a call with journalists, Armstrong placed AOL in a small group of online giants, including Google and Facebook, that have lately gained share in the display ad market. The unmentioned loser here is Yahoo, whose display ad share fell to 11 percent in 2011, according to comScore. But that's still far more than AOL's approximately 2.7 percent share.
The news on search and contextual ads was not as good, as revenue from those sources fell 8 percent. Execs sought to put a positive spin on that figure, noting it's the lowest rate of decline suffered in about three years.
Armstrong also spoke about some recent ad technology projects. He said AOL is building a system that will let agency holding companies build its Project Devil ads in-house. The ads in question are large format units, based on tech acquired with Pictela in 2010. They are designed to accommodate a range of content types and interactivity.
"We believe most clients could extend the amount of content they run in advertising," said Armstrong. "The system we have been working on is an enterprise system that could go inside the holding companies. We're taking our software and user interface and white labeling it."
Additionally, Armstrong said a new self-service ad product for AOL's Patch family of local news sites has gained traction. Launched in Q4, it has already added 500 customers, he said.
A few other earnings tidbits:
This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!
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.
The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.
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.