AOL reports strongest display ad growth in seven years
AOL has announced that its display advertising revenue is up 7 per cent to $340 million, marking the largest growth in profit generated from ads in seven years.
This has brought the company’s total third quarter revenue to $531.7 million, well ahead of analysts' average estimate of $521.6 million.
However, the company also said that its subscription revenue had its lowest rate of decline in six years.
In terms of market share, AOL has about 4 per cent of total U.S display ad revenue, while Google and Facebook will have almost 30 per cent by the end of this year.
Experts have noted that some of AOL's premium display ads were sold through its third party network, Ad.com, which can drive down the cost of the ad.
AOL Chief Executive Tim Armstrong said in an interview with Reuters that the main focus next year will be on advertising and video, which tend to command higher prices from marketers.