AOL online advertising growth rate

Growth is slowing down. Third quarter results show a revenue of $540 million from advertisements. Growth rate is about 13% year-on-year

But why is growth rate slowing down?

Decrease of display and search advertising on AOL site and partner sites

Continued pricing pressure due to competitors and drop in paid click ads on the search page

University of Phoenix (one of AOL’s big clients) is ending commitments in the first quarter of 2008, that shall lead to a similar slow down trend.

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