Display ad business driven by content and traffic to sites is continuing to decline.

1. AOL
Business Overview
Updated: Feb 2013
Dr. Augustine Fou
http://linkedin.com/in/augustinefou
Marketing Science Consulting Group, Inc.
May 9, 2012. 1

2. UPDATE: Feb 2013
31% growth in 3rd party ad network revs
+ 17% increase in search revenues
- -3% domestic display revenue
-10% subscription revenue YOY
4% overall revenue increase to $600M
May 9, 2012. 2

3. From CPM to Performance
(display) (search)
Source: IAB, PwC April 2011
May 9, 2012. 3

4. Market Cap Lifecycle
May 9, 2012. 4

5. Dial-up Declining for 10 yrs
Source: SplatF, November 3, 2011
May 9, 2012. 5

6. Spun out of Time Warner
May 9, 2012. 6

7. Cost of Content and Revenue
Source: HotHardware, Feb 3, 2011
May 9, 2012. 7

8. Display Revs Stuck in Neutral
Source: BusinessInsider November 3, 2010
May 9, 2012. 8

9. Display Revs Continue Decline
Updated: Nov 6, 2012
Source: AOL Public Filings
May 9, 2012. 9

10. Competitive Comparison
May 9, 2012. 10

11. Buying revenues for survival
Source: BusinessInsider: Feb 2011
May 9, 2012. 11

12. Looking Ahead
Source: HotHardware, Feb 3, 2011
May 9, 2012. 12

13. Looking Ahead
Hemorrhaging may be slowing; but new steady state is far smaller than before
Source: BusinessInsider, Nov 2009
May 9, 2012. 13

14. Financials (Annual Income)
Hemorrhaging may be slowing; but new steady state is far smaller than before
Source: Google Finance, Dec 2012
May 9, 2012. 14

15. Financials (Cash Flow)
Hemorrhaging may be slowing; but new steady state is far smaller than before
Source: Google Finance, Dec 2012
May 9, 2012. 15

16. Related Slideshares
Secular Shift Away from Display Advertising
By: Augustine Fou, May 24, 2012
Search Kicks Display Ads in Effectiveness
By: Augustine Fou, April 13, 2012.
Optimizing Display Ad Budgets
By: Augustine Fou, July 18, 2012.
- 16 - Augustine Fou

17. APPENDIX
May 9, 2012. 17

18. Display Revs Stuck in Neutral
Source: BusinessInsider April 6, 2010
May 9, 2012. 18