The newly independent AOL is looking strong heading into the new decade, and reports of a rebounding display market are good signs for the struggling portal, which is still a huge player in display. However, AOL will have to wait at least another year before it can finally capitalize on display's resurgence, according to one analyst.
J.P. Morgan's Imran Khan predicts that AOL will have a rough time in 2010 as it tries to "remedy a decade of lack of innovation," Adweek reports. The issue arises from AOL's previous selling methods. By selling much of its premium inventory through its Platform-A ad network in the past, AOL has grossly undervalued its inventory. In fact, AOL pulls in 40 percent less ad revenue per user than one of its chief rivals, Yahoo, according to Khan.
Last week, Khan and J.P. Morgan anticipated that display CPMs will grow in 2010, but only if publishers reduce their reliance on ad networks and experiment with larger, premium banners.
