AOL Demonstrates That Its Advertising Can Still Improve

AOL Inc. has started to demonstrate its development overtime as a 

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competitive company, especially in the aspect of display advertising revenue. Just this Wednesday, AOL Inc. declared its revenue of first-quarter for the display advertising. For the first time since even more than three years, it has shown a better curve of the graph, i.e. 4% to $130.5 million. This is a huge deal for the company considering its recent conditions it has went through in past. According to an analyst, Ross Sandler, who also works with with RBC Capital Markets shared that, to him "It looks like they are starting to turn the corner on revenue.”

It is not unnoticed that it has been only a year and half back that AOL separated itself from the flagship of Time Warner Group. It is since then, that AOL Inc. is working tirelessly to regain its potential and bring the company back to its feet. Surprisingly AOL Inc. was one of world’s most popular destinations, dominated by its email, but that glory is now around a decade old. Since the recent parting of ways from Time Warner, AOL has been pulling their socks, specially focusing at acquiring much-successful media-related websites which are already profiting largely. This strategy also including the acquisition of the large $315 million purchase of the Huffington Post dated back to February, 2011.

According to the C.E.O. of AOL Inc. Tim Armstrong, he stated that "It is a milestone quarter for us at AOL.” He was actively speaking on a conference call when he also mentioned that "I think those changes are really paying off."

Speaking the collective revenue from the advertising of the company only, it has fell almost 11% to $313.7 million which is a result of the declines in the search and third-party network advertising. Accumulatively, the overall total revenue of the company, has fell to the total of 17% to $551.4 million. Mostly the analysts in the market have predicted that according to the average the company had total revenue of $536.4 million, according to Thomson Reuters.

Needham & Co.’s analyst, Laura Martin confessed saying that "I like these AOL numbers." She further elaborated that "I like the fact that (subscription) churn is lower. It really says the deterioration is slowing it will hold up earnings longer."

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