AOL Enjoys a Boom, But Must Tackle Mobile to Avoid a Bust

AOL is currently enjoying a surge in traffic on mobile devices. The company is happy about that, of course. But there’s work to be done. That’s because consumers are adopting mobile faster than many of the platform’s advertisers. As AOL CEO Tim Armstrong has acknowledged, neither group — advertisers or customers — grooves on mobile …   Read More

1611 0
1611 0

AOL Enjoys a Boom, But Must Tackle Mobile to Avoid a BustAOL is currently enjoying a surge in traffic on mobile devices. The company is happy about that, of course.

But there’s work to be done. That’s because consumers are adopting mobile faster than many of the platform’s advertisers.

As AOL CEO Tim Armstrong has acknowledged, neither group — advertisers or customers — grooves on mobile banner ads anymore.

“We have a good problem — our traffic has really exploded from mobile,” Armstrong explains. “AOL’s traffic is now 50 percent mobile. The first issue in business is, you’ve got to get supply, and we’ve been successful there. Now the issue is, how does monetization catch up?”

According to a story at the Wall Street Journal’s CMO blog, “AOL will be looking to spend a lot of 2015 trying to build out its mobile ads business, as it also focuses on improving traffic and advertising demand for its core properties. That was a big theme in today’s fourth quarter earnings report, which revealed that AOL’s ad revenue was growing much faster via its programmatic platforms compared to its core brands.”

What is Armstrong’s main plan of action? Video.

“Our mobile strategy is video,” he said.

AOL, notoriously harassed for its “oldtimer” platform status, also intends to encourage advertisers and agencies to “up their game when it comes to mobile creative,” an area Armstrong sees as lacking at the moment.

“The [ad] worlds gotten enthralled with mobile and programmatic, and it needs to get enthralled with mobile creative,” said Armstrong.

Goodbye “You’ve Got Mail” and hello “You’ve Got Video”?

In this article