AOL trainwreck continues: Ad bookings down 40% year-over-year

The AOL trainwreck continues.

In a note this morning, Douglas Anmuth of Barclays reports that AOL has only sold 60% as many ads for the second half of this year as compared to the same period last year.

AOL, or Aol. if you prefer, is giving itself one year to make things right, says Douglas.

Douglas was a little shocked by this, since turning AOL around is a big task.

But, by this time next year Tim Armstrong will have been at the helm for two years, so we think it’s a reasonable time frame.

Whatever the case, we’re stamping it down. AOL has one year to get it together. Let’s see if it works.

Douglas wrote this up in a note this morning, after meeting with AOL CFO Artie Minson. Other bullets from Doug’s note:

  • AOL’s next search partnership is going to be big. AOL’s search deal with Google ends on December 19th. AOL thinks it will have a highly competitive fight between Google and Microsoft to get AOL’s next deal. AOL execs see the next deal as being broad including maps and local and even some sort of display ad deal.
  • AOL is going to do a few acquisitions, but it will manage its cash. AOL had $260 million at the end of the last quarter. By the end of the year, AOL will have $710 million in cash.
  • Sales are picking up, though. Douglas writes, “AOL is selling more inventory intra-quarter while benefit ting from higher display spot rates.”

View the original post at Business Insider