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(Marketwatch)   Accountants tell AOL "You've got profits"   (marketwatch.com) divider line 30
    More: Unlikely, AOL, search advertising, account of profits, economic growths  
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1650 clicks; posted to Business » on 08 Feb 2013 at 11:50 AM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-02-08 10:17:17 AM
For all those slamming AOL.... they made  $410.6 million in ad revenue last quarter.   How much did you make?

/lots of old people don't want to lose their aol email accounts they made in the late 90s/early 2000's when many still used their proprietary software as their connection to the internet... I am going to guess a highly large % of AOL.com's traffic is tied to email.
 
2013-02-08 10:34:52 AM

dletter: For all those slamming AOL.... they made  $410.6 million in ad revenue last quarter.   How much did you make?

/lots of old people don't want to lose their aol email accounts they made in the late 90s/early 2000's when many still used their proprietary software as their connection to the internet... I am going to guess a highly large % of AOL.com's traffic is tied to email.


Actually, I think most their revenue came from buying out The Huffington Post and someow managing to resist the urge to totally fark it up, though I could be wrong.

I did a lot of tech support in the 90's. I have good reason to hate AOL.

There's also that uncomfortable fact that a huge part of their business model remains dependant on elderly subscribers who aren't tech savy enough to realize the're getting ripped off.
 
2013-02-08 10:57:48 AM

Riche: There's also that uncomfortable fact that a huge part of their business model remains dependant on elderly subscribers who aren't tech savy enough to realize the're getting ripped off.


I assume you mean people who are still paying AOL $14.99 to "access the internet" (assuming they already have internet access via high speed means... if they so some reason need dialup, I don't know that is then "ripping them off"... other than you can practically get DSL or cable internet for the same price).    Are there any numbers of how many people still pay for "AOL" services that really have other access to the internet?

People still using their aol.com email addresses for free online... that seems less of a big deal... some people just don't want to change their email addresses.
 
2013-02-08 11:01:14 AM
As far as Huffington Post:

Alexa Rank's for
Huffington Post: #88
aol.com:  #70

They don't split out mail.aol.com from that, so, hard to say, but, as I said, I would think that would be a major driver of eyeballs to aol.com anymore.

And to play into the old people on AOL theory... according to Alexa "This site is particularly popular among users in the cities of New York (where it is ranked #11), Tampa (#13), and Orlando (#13). "
 
2013-02-08 11:03:06 AM
You're shiattin' me.

I actually said that out loud. At my last job, when people told me their email address @aol, I'd say the same thing.
 
2013-02-08 11:35:02 AM
I still laugh when my boss logs on and I hear "You've got mail".

I guess paying for email paid off for AOL.
 
2013-02-08 11:35:28 AM

dletter: As far as Huffington Post:

Alexa Rank's for
Huffington Post: #88
aol.com:  #70

They don't split out mail.aol.com from that, so, hard to say, but, as I said, I would think that would be a major driver of eyeballs to aol.com anymore.

And to play into the old people on AOL theory... according to Alexa "This site is particularly popular among users in the cities of New York (where it is ranked #11), Tampa (#13), and Orlando (#13). "


Huh.  It's starting to remind me of This story
 
2013-02-08 12:16:16 PM

Riche: Tampa (#13)


Yup.  My dad still, for who knows what reason, continues to pay AOL monthly.

He's had BrightHouse broadband for 10 years and understands that he could cancel and keep his same AOL email address, but he keeps on paying them.
 
2013-02-08 12:21:49 PM

dletter: As far as Huffington Post:

Alexa Rank's for
Huffington Post: #88
aol.com:  #70

They don't split out mail.aol.com from that, so, hard to say, but, as I said, I would think that would be a major driver of eyeballs to aol.com anymore.

And to play into the old people on AOL theory... according to Alexa "This site is particularly popular among users in the cities of New York (where it is ranked #11), Tampa (#13), and Orlando (#13). "


AOL FanHouse was also a respectable sports website, but now it's part of SportingNews
 
2013-02-08 12:30:28 PM
I don't know why people are surprised. They own HuffPo, Engadget, Techcrunch, and I think a few others. Whether you're a fan of their publications, AOL has a fairly respectable stable of online media.
 
2013-02-08 12:39:08 PM

Riche: Actually, I think most their revenue came from buying out The Huffington Post and someow managing to resist the urge to totally fark it up, though I could be wrong.


Also AOL owns a lot of other IP.  Mapquest for example.  Plus AIM is still used by a lot of people.  I've mostly switched over to gtalk, but a lot of people still have an AOL account just for the IM service.
 
2013-02-08 12:53:58 PM
Was reading a better article on this earlier Link

They make 175 million in profit on their subscribers. They lose 10 million are year on their ad business.They make 13 million in profit on Huff Post and other content outlets.
 
2013-02-08 12:59:39 PM

dletter: For all those slamming AOL.... they made  $410.6 million in ad revenue last quarter.   How much did you make?

/lots of old people don't want to lose their aol email accounts they made in the late 90s/early 2000's when many still used their proprietary software as their connection to the internet... I am going to guess a highly large % of AOL.com's traffic is tied to email.


I guess I'm one of the "off my lawn" crowd - I still have my AOL email address (eip if you want to check).  Haven't paid them a dime since 97 or 98, but it is the perfect address to sign up for all these web-based services to keep spam out of my gmail.
 
2013-02-08 01:25:53 PM
People need to move past the idea of AOL as that company with an outdated online tool that sent you dozens of trial CDs ten years ago. They still have subscription legacy arm, but it's down to about a 1/3 of their total revenue, and that arm is shrinking by 25% per year.  It's basically being sunset at this point.  They're now a billion dollar advertising conglomerate, and all of their efforts are there.
 
2013-02-08 01:56:45 PM

Khellendros: People need to move past the idea of AOL as that company with an outdated online tool that sent you dozens of trial CDs ten years ago. They still have subscription legacy arm, but it's down to about a 1/3 of their total revenue, and that arm is shrinking by 25% per year.  It's basically being sunset at this point.  They're now a billion dollar advertising conglomerate, and all of their efforts are there.


I was the product manager for the games channel 10 years ago and can confirm that even then AOL was moving away from the sub model.

/managed the transition of the games channel from the AOL client to the web
//disfunctional organization, but a lot of really smart folks worked there. Fun too. AOL, while intense, had a friendly culture
///worked at EA too - miserable shark tank of suck
 
2013-02-08 02:23:02 PM
I figure that their subscription base is basically now down to the little old ladies that still pay AT&T each month for their rotary phone rentals.
 
2013-02-08 02:29:00 PM

Khellendros: People need to move past the idea of AOL as that company with an outdated online tool that sent you dozens of trial CDs ten years ago. They still have subscription legacy arm, but it's down to about a 1/3 of their total revenue, and that arm is shrinking by 25% per year.  It's basically being sunset at this point.  They're now a billion dollar advertising conglomerate, and all of their efforts are there.


If that is true, AOL is still pretty screwed because only the legacy subscription arm is making them significant profits. The huge advertising conglomerate which you speak of is losing them money despite its size and things like HuffPo are only making them a small profit. Unless this quarter is a fluke, their long term prospects are dismal.
 
2013-02-08 06:14:00 PM

dletter: /lots of old people don't want to lose their aol email accounts they made in the late 90s/early 2000's


Odd, since AOL doesn't charge for email addresses.
 
2013-02-08 06:32:45 PM
AOL exists?

Been so long since I got a CD in the mail that I thought they were gone...
 
2013-02-08 07:34:08 PM

derpy: AOL exists?


Something something how else would your mom advertise on CL......

They've given up trying to make it on monthly ISP stuff.  Pay them whatever it is, $7/mo., get E-Mail addresses, AV software, etc..
 
2013-02-08 08:11:17 PM

ha-ha-guy: Also AOL owns a lot of other IP. Mapquest for example.


Well, I guess it's still 1996 somewhere.
 
2013-02-08 08:54:26 PM

Mad_Radhu: The huge advertising conglomerate which you speak of is losing them money


Lost Thought 00: They lose 10 million are year on their ad business.They make 13 million in profit on Huff Post and other content outlets.


Huh.
 
2013-02-08 09:52:43 PM

MrEricSir: ha-ha-guy: Also AOL owns a lot of other IP. Mapquest for example.

Well, I guess it's still 1996 somewhere.


Mapquest Alexa ranking: 128 USA 707 World
 
2013-02-08 10:17:23 PM
[Followup] You've got fail.
 
2013-02-08 11:03:38 PM

Khellendros: People need to move past the idea of AOL as that company with an outdated online tool that sent you dozens of trial CDs ten years ago. They still have subscription legacy arm, but it's down to about a 1/3 of their total revenue, and that arm is shrinking by 25% per year.  It's basically being sunset at this point.  They're now a billion dollar advertising conglomerate, and all of their efforts are there.



They did flood the nation with their CDs for years, and saturated the airwaves with their marketing.  I find it hard to fault people for not forgetting AOL's decade of carpet-bombing the world with advertising.
 
2013-02-09 12:44:50 AM

Lost Thought 00: Was reading a better article on this earlier Link

They make 175 million in profit on their subscribers. They lose 10 million are year on their ad business.They make 13 million in profit on Huff Post and other content outlets.


business insider data was for the 4th quarter of 2012, not the entire year.

AOL's $1.4 billion in ad sales is nothing to sneeze at, especially when it is growing at 15% a year....projected to top Facebook's advertising revenue growth by next year.

http://www.emarketer.com/newsroom/index.php/google-edges-closer-face bo ok-display-advertising-twohorse-race/
 
2013-02-09 01:59:44 AM
I blame the hipsters.  Some of the biggest hipster douche-bags I have run into over the last 3 years all had AOL emails.
 
2013-02-09 07:13:18 AM

HotWingAgenda: I blame the hipsters.  Some of the biggest hipster douche-bags I have run into over the last 3 years all had AOL emails.


Yeah, but they have them ironically.
 
2013-02-09 10:29:30 AM
Can they do that?

Or are they making a joke, since everyone knows AOL can't make money?

/snark off.
 
2013-02-09 02:22:14 PM

Mad_Radhu: Khellendros: People need to move past the idea of AOL as that company with an outdated online tool that sent you dozens of trial CDs ten years ago. They still have subscription legacy arm, but it's down to about a 1/3 of their total revenue, and that arm is shrinking by 25% per year.  It's basically being sunset at this point.  They're now a billion dollar advertising conglomerate, and all of their efforts are there.

If that is true, AOL is still pretty screwed because only the legacy subscription arm is making them significant profits. The huge advertising conglomerate which you speak of is losing them money despite its size and things like HuffPo are only making them a small profit. Unless this quarter is a fluke, their long term prospects are dismal.


Incorrect. Spend 30 seconds skimming their annual report. You're running on rumors and impression, not facts.
 
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