No Display Ad Recovery for AOL

AOL is still waiting to join in on the supposed display advertising recovery.

The newly spun-off company saw its U.S. display ad revenue slip by 7 percent during the second quarter of 2010 to $110.7 million, compared to $118.6 million during the same period in 2009, according to an earnings statement issued today. That decline is actually an improvement vs. Q1, when U.S. display revenue fell by 10 percent vs. the previous year.

And while some of AOL’s struggles can likely be attributed to the company’s ongoing reorganization — led by CEO Tim Armstrong (pictured) and president of global advertising and strategy Jeff Levick — its lack of progress on the display ad front is glaring. This is particularly true in light of back-to-back strong quarters for Yahoo in this arena, and the fact that 2009 was such a difficult year for the majority of media companies.

AOL officials did offer some reasons for optimism, citing that premium display inventory sales were flat in Q2.

Overall, advertising revenue declined 27 percent in Q2 to $296.9 million vs. Q2 of 2009, driven by steep declines in search, international display and third-party network revenue.

See also: “Big Money Bet on Display Ad Tech”