Ivey will be responsible for all digital ad revenue at Times Online and will report to trading director Dominic Carter and Zach Leonard, Times Online's digital media publisher.
Leonard said Ivey's appointment would accelerate the delivery of multimedia, mobile and sponsorship opportunities for advertisers.
Ivey was at AOL for four years and was last year promoted to UK sales director. He said that he left AOL on good terms and that, with AOL becoming a global player, changes at the firm were inevitable. His departure is yet another blow in what has been a tumultuous period for the US-founded firm.
AOL has seen several staff leave in the UK in the past 12 months, as it repositioned from being a broadband provider to a global content network. The UK team has seen the departure of head of commercial development Phil Guest and former managing director Andy Jonesco, among others.
AOL appointed ex-MSN head of sales Michael Steckler as vice- president, interactive marketing in July, and has since promoted him to UK managing director.