Dive Brief:
- AOL revenue reports were impressive this quarter, with third-party ad group jumping 44% over last year to $215 million.
- Programmatic is fueling the shift of AOL's business now making up 37% of non-search revenue while display ads fall flat.
- Content sites, what AOL is most well known for, continue to shrink as part of the revenue by dropping 3% this quarter.
Dive Insight:
It's clear from revenue numbers—news like the recent introduction of ad targeting system One—that AOL is transitioning to an ad-tech firm and away from an internet provider and content producer. Popular content sites like Huffington Post and TechCrunch probably aren't going anywhere, but will be supported by third-party ad sales and not their own display ads. AOL's progression seems to mirror how the industry is shifting in general.
