AOL reports $135m fall in ad revenue

AOL’s global ad revenue fell by around $135 million (6%) over the course of last year, and finished 18% down year on year in Q4 2008.

AOL’s revenue slumped by more than one fifth year on year in Q4, to $968 million, with declines of 27% in subscription revenue and 18% in advertising revenue, according to its parent company Time Warner’s 2008 financial results.

During 2008, AOL’s revenue declined by 20% to $4.2 billion, with Time Warner claiming that the decreases of 31% in subscription revenue and 6% in ad revenue were to blame.

Time Warner said ad revenue slipped due to declines in display advertising on the groups own websites, as well as third-party internet sites, which was offset marginally by an increase in paid-search ads.

The company failed to reveal individual ad revenue results for countries or businesses, such as Platform-A, but some executives have suggested that is the reason for Lynda Clazirio’s departure from the ad business, according to reports.

AOL announced the appointment of Greg Coleman as a replacement president of Platform-A earlier today, though didn’t give details on Clazirio’s departure (see AOL appoints Coleman as new Platform-A president).

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