How AOL Is Growing Despite A Flat Display Ad Business

AOL CEO Tim Armstrong has managed to pull off something fairly impressive. He has his company’s revenue growing. Yahoo CEO Marissa Mayer, for all her accolades as product person, has yet to see real sales growth.

How has Armstrong gotten AOL growing? Through automated, algorithm-based advertising, or “programmatic” in the language of the industry. Having invested heavily in programmatic solutions, the company reported strong revenue growth in its third quarter earnings on Friday, with programmatic accounting for 37% of all non-search ad revenue.

Based on company data charted for us by BI Intelligence, you can see how AOL’s programmatic strategy is paying off — advertising on third-party platforms is seeing healthy growth, even though its display ad business was flat and its search ad revenue was just up slightly year-over-year.

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