This year, AOL has seen a lot of big expenditures- like in the hyperlocal market with their Patch product- seemingly without revenues to balance out the spending.
CEO Tim Armstrong said back in September that profitability is a huge concern for AOL in coming months, and its attempts to refashion itself as a content company have been middling, to be charitable. But Armstrong says the company is pinning at least some of its hopes on mobile ad growth- about 10%, to be precise. Bloomberg quotes Armstrong on the mobile ad initiative, and the CEO says:
“We’re very, very small right now in mobile…The opportunity is there, and we’ve got to get really organized around it… Video looks like a faster total revenue opportunity… Mobile is a faster opportunity to grow, percentage-wise. We’re doing it ourselves right now, but I wouldn’t rule out that we’re going to be aggressive” in acquiring companies, he said.
In response to questions about whether AOL will stay private or go public, Armstrong deflects:
“People ask me all the time, ‘What about the competition?’ and ‘How does AOL fit into the competitive environment?’ Sitting in the CEO chair, you have to pay attention to everything that goes on. I do pay attention to everything that goes on. We’re purely focused on execution at this point.’’
The struggling company’s CEO says that it hopes to bring on a higher proportion of video advertising.