AOL posted higher than expected final quarter finacial results for 2011, with display ad revenue up to $363.8 million, up 10% from $331.6 million a year ago.
After several years of display ad declines, AOL is facing some easier comparisons, but growth in the fourth quarter is notable considering Yahoo’s display ad revenue was down 3% in the same quarter.
Overall revenue was down 3% to $576.8 million from $596.0 million a year ago, reflecting the continual decline of AOL’s legacy online access business. Net income was also down 66% from last year, but both figures beat Wall Street estimates.
AOL is participating on an online ad-selling joint venture with Microsoft and Yahoo, which should be underway this spring.
Mr. Armstrong is lobbying the consortium to include its so-called “Devil Ad” format, very large, interactive units for brand advertising, as part of the offering, but it’s unclear whether it will do so. Any additional revenue from the partnership will come in the second half of 2012.
Overall traffic to AOL properties was down 4% in the quarter, a decline attributed to its AIM instant messaging service and Mapquest, two things he said he is working to fix, “as we speak.”
