Parent Time Warner's 2008 financial results reveal that AOL's Q4 revenue slumped by more than one fifth year on year, to $968m, including declines of 27% in subscription revenue and 18% in advertising revenue.
Over the course of 2008, AOL revenue declined by 20% to $4.2bn, with Time Warner blaming the fall mainly on decreases of 31% in subscription revenue and 6% in advertising revenue.
It said the decline in subscription revenue resulted from opting to offer its e-mail and other products free of charge to internet consumers.
Time Warner said ad revenue fell due to declines in display advertising on its own websites and on third-party internet sites, offset partially by an increase in paid-search advertising.
The company did not break out the ad revenue for individual countries, nor for individual business units such as Platform-A, which houses its various ad-related businesses including Tacoda.
Some observers have attributed the ad downturn as a key reason behind AOL's decision today (4 February) to replace Platform-A chief Lynda Clazirio with digital veteran and former Yahoo executive Greg Coleman.
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