Strong growth for AOL video, mobile, programmatic and native ad revenue

DetailsEditor | 10 May 2015

The investments that AOL has made over the last few years are paying off according to the online giant’s first quarter results for 2015.

For the quarter ended 31 March 2015, revenue grew 7% year on year, driven by 12% growth in global advertising and other revenue. This was 9% growth on an FX neutral basis.

Cost of revenues increased $34 million year-over-year, driven by a $46 million increase in traffic acquisition costs (TAC) associated with the growth of search and third party properties revenue. Excluding TAC, costs of revenues declined year-over-year.

Of the AOL business lines, AOL Platforms was the stand out performer with revenue growing 21% year-over-year, driven by 19% growth in third party properties revenue. This was said to reflect increases in the sale of premium formats, including video, across the company’s programmatic platform. AOL added that the revenue growth further reflected increased adoption of its programmatic products, which drove growth in revenue from platform access and services fees. Revenue growth also reflects 35% growth in revenue from AOL Properties inventory sold through our programmatic platform. Declines in AOL Platforms Adjusted OIBDA reflected increased investments in the video and programmatic platform.

"AOL grew its consumer base strongly and saw continued strength in video, mobile and programmatic advertising, while we also updated the structure and capabilities of the company,” said Tim Armstrong, AOL chairman and CEO. “AOL continues to grow in strength and we are on a mission to scale the first Media Technology company of the internet and mobile age.”