AOL ad platform evolution stumbles

by Media Week, Media Week 06-May-08

AOL has suffered a blip in its on-going bid to transform itself into a major global online advertising player, with its ad revenue growth stalling in Q1 2008.

It is engaged in a strategy of focusing increasingly on advertising
sales, and moving away from the internet access business following the
sale of several of its ISP businesses around the world. Last year it

created the Platform A ad network to offer its Advertising.com, Tacoda,

Third Screen Media, Lightningcast and Ad:tech operations under one
roof.

But according to parent company Time Warner's Q1 2008 results, AOL ad
revenues increased by only 1%, or $3m (£1.5m) year on year.
By comparison, AOL ad revenues in Q4 2007 were up 18% from the previous
quarter, and in Q3 2007 they were up 13% from the prior quarter.

Time Warner said that AOL's Q1 2008 ad revenues partly reflected a
decline in display income.

Across the overall AOL business, Q1 2008 revenues totalled $1.13bn (£575m), down from $1.46bn (£743m) 12 months
previously.