It was this time last year that AOL jumped on board the advertising business wagon in an effort to tap into its 90 million monthly visitors and turnaround its wailing fortunes. But let’s face it – it’s like turning an oil-tanker in the English Channel!
A slowdown in advertising revenue to 16 percent growth last quarter (compared to 40 percent the previous) has left AOL execs split down the middle. Many are now raising questions about the transformation plan, while others accept that the prospect of exceeding the overall Online Ad growth rate is no longer realistic.
Despite eMarketer’s prosperous 28 percent growth forecast for the US, Internet usage trends indicate stormy weather for the portals – especially giants like AOL, Yahoo! and MSN. Analyst for RBC Capital Markets, Jordan Rohan, sums up the outlook: