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AOL Ad Revenue Skyrockets under New Model

AOL is enjoying tremendous success after switching from a paid-subscription model to one that’s free but ad-supported, according to MediaPost (via MarketingVox).

The picture of AOL’s billings comes from an upcoming report from Avenue A/Razorfish. Overall, portals’ billings jumped 142 percent - but AOL’s grew 454 percent - from 2005 to 2006. The company’s position as an ad seller was bolstered by the change, with revenue coming from a variety of vertical categories.

Other parts of the Avenue A/Razorfish report examine how social networks such as Facebook and MySpace are faring in ad revenue and how portals such as Yahoo are competing. Facebook billings rose 1200 percent, and MySpace’s grew 354 percent.

For Yahoo, the dynamics of what sorts of ads are being bought shifted. Though search dominated in 2005, making up 65 percent of ad billings, that proportion dropped to 40 percent in 2006. Display ads now make up 60 percent of Yahoo’s billings.

Ad networks’ billings dropped from 12 percent in 2005 to 11 percent in 2006, with signs pointing to a consolidation of the top networks likely this year, according to Avenue A/Razorfish.

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Study: Radio Hosts Promote Getting Drunk

Radio stations in the U.K. reacted with outrage when they learned of a report by researchers from the University of the West of England which accused them of promoting excessive drinking.

The study looked at 1,200 hours of radio output,…

Print read more like this »

GM, Chrysler Extend Incentives, Boost Slipping Sales

General Motors posted sales of 308,817 vehicles in August. That’s a drop of 20 percent from August of last year - but 31 percent better than July.

In order to boost sales as much as possible during a time when…

Outdoor read more like this »

OOH Golf Net Launches in 100 Retail Spots

A new digital out-of-home network to reach golfers is launching to 100 retail locations in the next two months. The network will be available in Dunham’s Sporting Goods, Golf Etc., Golf USA, Pro Golf, and ParMasters, among others.

The Golf…

Television read more like this »

Fox Says ‘Fringe’ Viewers Pay Attention to Lack of Ads

Fox says that viewers’ attention to commercials is higher when fewer commercials are aired. The revelation comes as a result of testing the network has done for its freshman thriller, Fringe, which will premiere Sept. 9 with limited commercials and shorter…

Interactive read more like this »

Global Mobile Phone Sales to Grow 11% in 2008

Worldwide sales of mobile phones will reach 1.28 billion units in 2008 - up from 1.15 billion units in 2007 - an 11 percent increase from last year, according to Gartner, Inc - (via MarketingCharts).

While the mobile phone market is poised for…

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Even Wealthy Cut Spending as Inflation, Housing Concerns Intensify

Consumers in all income segments are cutting back spending, and doing so to a greater extent recently than at the beginning of the second quarter, according to a comScore study examining changes in consumer attitudes and perceptions about the U.S. economy…

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