AOL global ad revenue grows, net income falls

Share this content:

AOL's global advertising business generated $319 million in revenue in the second quarter, a 5% increase compared with the prior year. The second quarter was the unit's first period of year-over-year revenue growth since Q2 2008. AOL's global advertising business contributed 59% of the company's total revenue in the quarter.

The New York-based company reported $542.2 million in overall revenue in the quarter, a drop of 8% year-over-year, as well as a net loss of $11.8 million.

Global display advertising revenue rose 14% year-over-year to $137.6 million in Q2, while US display advertising increased by 16% to $126.8 million. However, the display ad gains missed analyst expectations, according to Reuters. In Q1, the segment recorded its first year-over-year revenue growth in three years.

“Revenue growth will precede profit growth, and we have revenue growth on the move,” said Tim Armstrong, chairman and CEO of AOL, on an earnings call.

Search and contextual advertising revenue fell to $87.8 million, a 21% drop from last year. The company attributed the decline to fewer US-based search queries and the sale of instant messaging client ICQ last July.

Revenue from subscriptions dropped 23% from last year to $201.3 million in Q2. Revenue per subscriber was down 3%, and the company's US subscriber base dwindled by 21% to 3.4 million consumers.

close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here