AOL, Inc. (AOL): Competing With Content

Facebook looks to be moving in a similar direction. Its purchase of Atlas from Microsoft earlier this year should help the company better attribute an ad’s performance. It also allows for direct comparisons of ad campaigns on Facebook Inc (NASDAQ:FB), off Facebook, across mobile and desktop, and even Facebook ads to traditional media like TV.

AOL’s partnership with Facebook gives it one small advantage over Google Inc (NASDAQ:GOOG). Many of Google’s DoubleClick clients would like access to Facebook Exchange, but Facebook Inc (NASDAQ:FB) doesn’t want to give Google the benefit to what it sees as its biggest competition. For now, AOL is benefiting from the standoff.

Vertically integrated

AOL is becoming increasingly vertically integrated: It offers access to the internet (although its subscriber base continues to shrink), the content people want access to, and the advertising network that’s essential to publishers. It’s trying to become the Time Warner of the internet.

AOL has a long way to come back. I believe its 4% revenue growth in the fourth quarter of last year is just the beginning after the company faced falling revenues for eight straight years. We’ve finally reached the point where its content brands and ad business can offset the lost subscriber revenue, and the company can begin to grow again.

The article AOL: Competing With Content originally appeared on Fool.com.

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