AOL's Big Bet on Programmatic Advertising Continues to Pay Off
Internet company AOL managed to trump top- and bottom-line estimates in its second quarter thanks to strong growth in its digital advertising division.
Internet company AOL managed to trump top and bottom line estimates in its second quarter thanks to strong growth in its digital advertising division. Its automatic and real-time ad-buying platform, known as programmatic advertising, surged 100% year over year and grew to account for 35% of digital ads segment revenue, up from 5% a year earlier. The company reported quarterly profits of $37.3 million, or 45 cents a share, slightly higher than analysts' estimates of $35.3 million, or 44 cents a share. Revenue climbed 12% year over year to $606.8 million, exceeding forecasts of $595.51 million. TheStreet's Keris Lahiff reports from New York.
