Tim Armstrong Gives Some Project Devil Details

Erick Schonfeld currently works at TechCrunch as Co-Editor. He joined in 2007 and is based in New York. Schonfeld oversees the editorial content of the site, selects and edits guest posts, helps to program the Disrupt conferences and CrunchUps, produces some TCTV shows, and writes daily for the blog. He is also the father of three... → Learn More

AOL CEO Tim Armstrong is betting on the devil. Project Devil, that is. Those are the ad units on AOL properties (including TechCrunch), and now on Hearst sites as well, that take up all the ad spots with one campaign. Instead of 14 different ads on a page, the same space if all given to one advertiser. They are designed to be more engaging as well via the addition of maps, videos, and other interactive elements. In today’s first quarter earnings call, Armstrong told analysts: “On every single benchmark, Devil Ads perform better.”

He then broke down some stats: compared to “industry benchmarks” (i.e. run-of-the-mill display ads), AOL is seeing 6.4X the engagement rate with Project Devil ads than standard ones (10 percent versus 1.5 percent engagement), 1.9X the click-through rate, and 3.4X the time spent with the ads for those people who do engage (47 seconds versus 14 seconds). Project Devil video ads are played twice as much as other video ads.

If ads are AOL’s monetization engine, then Project Devil is the turbocharger. “Devil is currently a very small part of our inventory,” Armstrong says, “but a growing part of the revenue picture. We can use less inventory and get a bigger bang for the buck.”

AOL needs as much bang as it can get. In the first quarter, AOL was still fighting a 17 percent decline in total revenues, with the subscription business down 24 percent, and search and contextual ads down another 21 percent. But there was one bright spot. Display advertising looks like it may have turned the corner for AOL, with 4 percent revenue growth overall and 11 percent growth domestically. Project Devil is a part of that.

AOL eliminated 55 percent of its ad impressions by cleaning up its pages, and revenues still grew. The flip side of that is attracting a bigger audience on the content side. AOL si now the No. 2 online video publisher in terms of unique viewers. The Huffington Post alone grew 27 percent in unique visitors during the quarter from December, and Patch grew more than 100 percent off a small base (total unique visitors for Patch is now 6.5 million). The locally-targeted ads on Patch also do better than normal display, but that is another story and Patch still has a long way to go.

AOL’s new initiatives with Project Devil, Patch, and video are promising starts. Now Armstrong needs to scale them up.

AOL is a global advertising-supported Web company, with display advertising network in the U.S., a substantial worldwide audience, and a suite of popular Web brands and products. The company’s strategy...

Learn more

View the original article here

AOL CEO Tim Armstrong: Paid Content Can Work

Leena Rao currently works as a writer for TechCrunch. She recently finished graduate school at the Medill School of Journalism at Northwestern University, where she studied business journalism and videography. From 2004 to 2007, she helped lead Congresswoman Carloyn Maloney’s community outreach and relations efforts in New York City. She graduated from Columbia University in 2003, where she was... → Learn More

TechCrunch editor Michael Arrington took the stage today to interview AOL CEO Tim Armstrong. It was actually at TechCrunch Disrupt New York last year where Armstrong first approached Arrington about buying TechCrunch. We all know how that worked out.

Armstrong and Arrington touched on a variety of subjects, including AOL’s agressive content strategy. While AOL’s content has remained free, Armstrong does seem to think that a paid content model can work. “It’s a matter of how you do it…but I’m a long term believer in paid content as a strategy.” As he cautions, AOL’s news content doesn’t have a price right now, and Armstrong didn’t reveal any future plans for a paywall but it’s certainly interesting to see that he isn’t totally against the strategy.

Armstrong’s stance is certainly interesting considering other media companies’ recent moves towards adopting paywall, such as The New York Times.

As for more acquisitions, Armstrong told Arrington that there were five to ten companies he interested in acquiring right now, but no acquisitions are imminent.

And on AOL’s overall success as a company considering its new strategy, “it’s a come back,” Armstrong explains. “We’re clear on what we are doing and no competitor who is going to get in the way of us.”

Tim Armstrong was appointed CEO and Chairman of AOL in March 2009. Before becoming the CEO of AOL, Armstrong presided over Google’s North American and Latin American advertising sales and...

Learn more

View the original article here

AOL CEO Tim Armstrong: Paid Content Can Work

Leena Rao currently works as a writer for TechCrunch. She recently finished graduate school at the Medill School of Journalism at Northwestern University, where she studied business journalism and videography. From 2004 to 2007, she helped lead Congresswoman Carloyn Maloney’s community outreach and relations efforts in New York City. She graduated from Columbia University in 2003, where she was... → Learn More

TechCrunch editor Michael Arrington took the stage today to interview AOL CEO Tim Armstrong. It was actually at TechCrunch Disrupt New York last year where Armstrong first approached Arrington about buying TechCrunch. We all know how that worked out.

Armstrong and Arrington touched on a variety of subjects, including AOL’s agressive content strategy. While AOL’s content has remained free, Armstrong does seem to think that a paid content model can work. “It’s a matter of how you do it…but I’m a long term believer in paid content as a strategy.” As he cautions, AOL’s news content doesn’t have a price right now, and Armstrong didn’t reveal any future plans for a paywall but it’s certainly interesting to see that he isn’t totally against the strategy.

Armstrong’s stance is certainly interesting considering other media companies’ recent moves towards adopting paywall, such as The New York Times.

As for more acquisitions, Armstrong told Arrington that there were five to ten companies he interested in acquiring right now, but no acquisitions are imminent.

And on AOL’s overall success as a company considering its new strategy, “it’s a come back,” Armstrong explains. “We’re clear on what we are doing and no competitor who is going to get in the way of us.”

Tim Armstrong was appointed CEO and Chairman of AOL in March 2009. Before becoming the CEO of AOL, Armstrong presided over Google’s North American and Latin American advertising sales and...

Learn more

View the original article here

Tim Armstrong Gives Some Project Devil Details

Erick Schonfeld currently works at TechCrunch as Co-Editor. He joined in 2007 and is based in New York. Schonfeld oversees the editorial content of the site, selects and edits guest posts, helps to program the Disrupt conferences and CrunchUps, produces some TCTV shows, and writes daily for the blog. He is also the father of three... → Learn More

AOL CEO Tim Armstrong is betting on the devil. Project Devil, that is. Those are the ad units on AOL properties (including TechCrunch), and now on Hearst sites as well, that take up all the ad spots with one campaign. Instead of 14 different ads on a page, the same space if all given to one advertiser. They are designed to be more engaging as well via the addition of maps, videos, and other interactive elements. In today’s first quarter earnings call, Armstrong told analysts: “On every single benchmark, Devil Ads perform better.”

He then broke down some stats: compared to “industry benchmarks” (i.e. run-of-the-mill display ads), AOL is seeing 6.4X the engagement rate with Project Devil ads than standard ones (10 percent versus 1.5 percent engagement), 1.9X the click-through rate, and 3.4X the time spent with the ads for those people who do engage (47 seconds versus 14 seconds). Project Devil video ads are played twice as much as other video ads.

If ads are AOL’s monetization engine, then Project Devil is the turbocharger. “Devil is currently a very small part of our inventory,” Armstrong says, “but a growing part of the revenue picture. We can use less inventory and get a bigger bang for the buck.”

AOL needs as much bang as it can get. In the first quarter, AOL was still fighting a 17 percent decline in total revenues, with the subscription business down 24 percent, and search and contextual ads down another 21 percent. But there was one bright spot. Display advertising looks like it may have turned the corner for AOL, with 4 percent revenue growth overall and 11 percent growth domestically. Project Devil is a part of that.

AOL eliminated 55 percent of its ad impressions by cleaning up its pages, and revenues still grew. The flip side of that is attracting a bigger audience on the content side. AOL si now the No. 2 online video publisher in terms of unique viewers. The Huffington Post alone grew 27 percent in unique visitors during the quarter from December, and Patch grew more than 100 percent off a small base (total unique visitors for Patch is now 6.5 million). The locally-targeted ads on Patch also do better than normal display, but that is another story and Patch still has a long way to go.

AOL’s new initiatives with Project Devil, Patch, and video are promising starts. Now Armstrong needs to scale them up.

AOL is a global advertising-supported Web company, with display advertising network in the U.S., a substantial worldwide audience, and a suite of popular Web brands and products. The company’s strategy...

Learn more

View the original article here

AOL CEO Tim Armstrong: Paid Content Can Work

Leena Rao currently works as a writer for TechCrunch. She recently finished graduate school at the Medill School of Journalism at Northwestern University, where she studied business journalism and videography. From 2004 to 2007, she helped lead Congresswoman Carloyn Maloney’s community outreach and relations efforts in New York City. She graduated from Columbia University in 2003, where she was... → Learn More

TechCrunch editor Michael Arrington took the stage today to interview AOL CEO Tim Armstrong. It was actually at TechCrunch Disrupt New York last year where Armstrong first approached Arrington about buying TechCrunch. We all know how that worked out.

Armstrong and Arrington touched on a variety of subjects, including AOL’s agressive content strategy. While AOL’s content has remained free, Armstrong does seem to think that a paid content model can work. “It’s a matter of how you do it…but I’m a long term believer in paid content as a strategy.” As he cautions, AOL’s news content doesn’t have a price right now, and Armstrong didn’t reveal any future plans for a paywall but it’s certainly interesting to see that he isn’t totally against the strategy.

Armstrong’s stance is certainly interesting considering other media companies’ recent moves towards adopting paywall, such as The New York Times.

As for more acquisitions, Armstrong told Arrington that there were five to ten companies he interested in acquiring right now, but no acquisitions are imminent.

And on AOL’s overall success as a company considering its new strategy, “it’s a come back,” Armstrong explains. “We’re clear on what we are doing and no competitor who is going to get in the way of us.”

Tim Armstrong was appointed CEO and Chairman of AOL in March 2009. Before becoming the CEO of AOL, Armstrong presided over Google’s North American and Latin American advertising sales and...

Learn more

View the original article here

Tim Armstrong Gives Some Project Devil Details

Erick Schonfeld currently works at TechCrunch as Co-Editor. He joined in 2007 and is based in New York. Schonfeld oversees the editorial content of the site, selects and edits guest posts, helps to program the Disrupt conferences and CrunchUps, produces some TCTV shows, and writes daily for the blog. He is also the father of three... → Learn More

AOL CEO Tim Armstrong is betting on the devil. Project Devil, that is. Those are the ad units on AOL properties (including TechCrunch), and now on Hearst sites as well, that take up all the ad spots with one campaign. Instead of 14 different ads on a page, the same space if all given to one advertiser. They are designed to be more engaging as well via the addition of maps, videos, and other interactive elements. In today’s first quarter earnings call, Armstrong told analysts: “On every single benchmark, Devil Ads perform better.”

He then broke down some stats: compared to “industry benchmarks” (i.e. run-of-the-mill display ads), AOL is seeing 6.4X the engagement rate with Project Devil ads than standard ones (10 percent versus 1.5 percent engagement), 1.9X the click-through rate, and 3.4X the time spent with the ads for those people who do engage (47 seconds versus 14 seconds). Project Devil video ads are played twice as much as other video ads.

If ads are AOL’s monetization engine, then Project Devil is the turbocharger. “Devil is currently a very small part of our inventory,” Armstrong says, “but a growing part of the revenue picture. We can use less inventory and get a bigger bang for the buck.”

AOL needs as much bang as it can get. In the first quarter, AOL was still fighting a 17 percent decline in total revenues, with the subscription business down 24 percent, and search and contextual ads down another 21 percent. But there was one bright spot. Display advertising looks like it may have turned the corner for AOL, with 4 percent revenue growth overall and 11 percent growth domestically. Project Devil is a part of that.

AOL eliminated 55 percent of its ad impressions by cleaning up its pages, and revenues still grew. The flip side of that is attracting a bigger audience on the content side. AOL si now the No. 2 online video publisher in terms of unique viewers. The Huffington Post alone grew 27 percent in unique visitors during the quarter from December, and Patch grew more than 100 percent off a small base (total unique visitors for Patch is now 6.5 million). The locally-targeted ads on Patch also do better than normal display, but that is another story and Patch still has a long way to go.

AOL’s new initiatives with Project Devil, Patch, and video are promising starts. Now Armstrong needs to scale them up.

AOL is a global advertising-supported Web company, with display advertising network in the U.S., a substantial worldwide audience, and a suite of popular Web brands and products. The company’s strategy...

Learn more

View the original article here