Tough Year Ahead for AOL?

AOL’s turnaround may be at least a year away.

A few days after issuing an optimistic forecast for the online display ad market in 2010, J.P. Morgan analyst Imran Khan predicted a rough year for one of the display market’s biggest players: the recently reinvented AOL.

Despite what he sees as a series of sound management decisions by CEO Tim Armstrong, Khan said he doesn’t expect a real payoff to happen until late next year, primarily because of the damage AOL has done to its own ad sales business.

According to his analysis, AOL pulls in 40 percent less ad revenue per user than does display giant Yahoo.

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