AOL And Google Renew Search Deal Through 2015

AOL CEO Tim Armstrong at NYSE

AOL just announced it has made Google its exclusive search provider for paid text-based search and contextual advertising on AOL’s properties in the U.S through 2015.

Google will also provide “web-based organic search,” mobile search, and mobile search ads. As a part of the deal, Google agreed to feature AOL video content on YouTube.

Search revenue represented 18% of AOL’s overall revenue in Q2, and 36% of its ad revenue, but was down 28% year-over-year.

Microsoft, which is running around buying search share, was in contention for the deal but lost out in the closing months of negotiations.

“At the end of the day, Google checked all the boxes,” AOL CEO Tim Armstrong told Kara Swisher in an interview.

Tim was on CNBC minutes ago. Here are our notes from the interview:

  • Process started a year ago.
  • In April, we got very serious.
  • This new deal allows us to check all the boxes. 
  • The deal is “materially better” in just about every aspect for us and Google.
  • This is a home run day for AOL.
  • What’s the checklist? Answer below.
  • Better search algorithm for users. Better results. Universal search that Google has.
  • Expanded ad products.
  • Consumer will see more AOL content on YouTube.
  • AOL and Google search on mobile

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