"Programmatic ads grew at over 100% year-over-year, and we're growing faster than the programmatic field overall," AOL CEO Tim Armstrong told investors looking over the company's second-quarter results. "Programmatic [ad revenue] has grown from 5% to 34% of our business in a year, which is part of a large industry shift and the biggest shift in the business in the past twenty years," he said.
Besides programmatic, better inventory pricing and video helped propel AOL's advertising higher. Display was up 9% year-over-year, search was up 6%. AOL's third-party platforms business, which includes AOL One, Adap.tv, Ad.com, as well as AOL's DSP and SSP, was the biggest beneficiary: Revenue was up 60% year over year.
AOL's better monetization of inventory suggests it is executing better than Yahoo, the other first generation digital publisher to which it is often compared. During its earnings call, Yahoo said it was struggling with declining CPMs as it tried to increase its premium inventory.