AOL snaps up interactive ad firm

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Smaller loss = potential comeback?

The article notes:
Advertising has been a sore spot for AOL, a division of media giant Time Warner, but the company has shown potential for making a comeback. In April, Time Warner reported that AOL's advertising revenue fell by 5 percent, or $12 million, year over year, in its first quarter. However, compared with the previous quarter, the ad business rose 5 percent, powered mainly by gains in commercial search revenue and fueled by a partnership with Google. AOL's advertising revenue declined by a stunning 40 percent in 2003.

Well, the quarter didn't produce another 40% drop.

AOL has decreased its decline by "fueling" Google, sounds like, during a time when web advertising has been gaining.

The story says AOL buys a small but profitable advertising company which uses questionable (I'd say distasteful) technology, and faces the future with great hope.

This sounds discouraging, actually.
ZDNet must see advertising potential in AOL, much like IBM. Remember that series of puff pieces?

Posted by: Anton Philidor   Posted on: 06/24/04 You are currently: a Guest | Members login | Terms of Use

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