AOL has reported a stronger 3rd quarter results on this Tuesday. The rise in sales helped a major part in improving the ad sales.
The revenues of global advertising has increased 7 percent to US $ 340 million from US$ 13.7 million in the final quarter, when compared with same period of 2011. The company has experienced very good increase of 18 percent revenue from 3rd-party ad networks, which again includes company’s network and 8 percent rise in the search as well as contextual advertising.
Tim Armstrong, the chairman and chief executive of AOL said “We have positioned the company in a right way to improve the sales for the year 2013 and also beyond with the growth in advertising.”
Revenues from the international display sales have risen 18 percent to US$ 12.9 million that in turn reflected the growth in Britain and Canada. However, the advertising news was positive; revenues from the display advertising in US fell by 3 percent.
On the whole, AOL has reported total revenues of US $ 531.7 and is flat compared with the previous year’s numbers. The company’s overall earnings are $20.8 million versus previous year’s $2.6 million.
AOL Stock, based in New York was on the greater side on Tuesday by US$ 7.89 or 22% to US$ 43.70 per share.
Mr. Armstrong said in a conference call that advertising business can be considered to be of strategic importance to AOL. The strategy is split into 2 areas- deep marketing services and programmatic or automated buying. He also added that the company made investments in technology and also on more staff to expand their business.
Use of AOL brand ad platform, Project Devil, allows the advertisers to occupy advertising spaces on the web page. It had grown more than ten percent. The company is ready to repeat the use of same platform and was very strong.
Mr. Armstrong has acknowledged that advertising results of the domestic display is not as robust as expected. But, he also said that the company has plans for improving the overall traffic across all the brands and investing more on the lifestyle brands that allow the advertisers to target users with the contextual ads.
Revenues from the dial-up Internet subscriptions of the company have declined by ten percent in this particular quarter, to US$ 173.5 million from US$ 191.9 million.