AOL Ad Revenue Skyrockets under New Model · MarketingVOX

AOL Ad Revenue Skyrockets under New Model · MarketingVOX: "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.
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. "