AOL Righting Ad Business Supporting $24 Value
AOL (NYSE:AOL) generates its ad revenues through display ads (e.g. banner ads, skyscraper ads) on AOL sites like AOL News, AOL Money & Finance, as well as display ads on external sites that partner with AOL. It competes with Yahoo (NASDAQ:YHOO), Google (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT) in this market. AOL’s search business (AOL.com) also generates ad revenue through keyword advertising that is powered by Google. It competes mainly with Microsoft and Yahoo; however, Facebook has also started to become another potent threat to AOL in this market.
We estimate that display advertising (including third party sites) and search advertising business accounts for around 32% and 13% of our $23.94 Trefis price estimate for AOL stock. Our price estimate stands roughly 18% above market price.
AOL continues its rebuilding efforts..
In spite of the general revival in the U.S. online advertising industry, which grew from $5.5 billion in Q3 2009 toComplete Story »