This document summarizes AOL's business performance and strategies over time. It shows that AOL experienced 31% growth in revenue from its third-party ad network and 17% increase in search revenues in 2013. However, domestic display revenue declined by 3% and subscription revenue declined by 10% year-over-year. The document also discusses AOL's transition from relying on subscription revenues to online advertising, its acquisitions of content and technology companies to boost revenues, and its challenges with declining display advertising sales.

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