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Ad Growth Slowdown Adds Pressure To AOL's Turnaround

Just as AOL was finding success after reorienting its business model towards advertising instead of providing internet access, the slowdown in the growth of online ad spending is complicating its turnaround. Both the NYT and the FT have articles in their Monday editions about the possible repercussions:

NYT: AOL execs consider the slowdown a temporary bump in the road, pointing to one-time issues, such as the portal’s redesign and changes in the display of search results. Temporary or not, Richard Parsons, chairman and CEO of Time Warner (NYSE: TWC), which owns 95 percent of AOL, earlier this month said he no longer expects AOL

One Response to “Ad Growth Slowdown Adds Pressure To AOL's Turnaround”

  1. Nick Charles

    Advertising.com is a great company, but the idea that it would become more important for AOL than the the AOL brand seems misguided—unless the idea is to shrink AOL so that Yahoo or Google would actually be willing to pay for it. And perhaps, that is the strategy. If AOL does another Fall "restructuring" and "streamlines the cost structure," to the tune of a few thousand jobs in the next couple of months, I guess we'll know.