America Online 2010 Annual Report Download - page 47

Table of Contents
AOL INC.
PART II—ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
has been increasing, and was approximately nine years, eight years and seven years for the years ended December 31, 2010, 2009 and 2008, respectively.
Results of Operations
The results of operations for the years ended December 31, 2009 and 2008 have been recast so that the basis of presentation is consistent with that of
the results of operations for the year ended December 31, 2010. This recast reflects the financial condition, results of operations and cash flows of buy.at as
discontinued operations. As previously discussed, the results of operations of ICQ are presented within continuing operations for all periods presented.
Consolidated Results
The following table presents our revenues, by revenue type, for the periods presented (in millions):
Years Ended December 31,
2010 2009
% Change
from 2009
to 2010 2008
% Change
from 2008
to 2009
Revenues:
Advertising $ 1,284.1 $ 1,736.7 (26)% $ 2,083.3 (17)%
Subscription 1,023.6 1,388.8 (26)% 1,929.3 (28)%
Other 109.0 120.3 (9)% 140.1 (14)%
Total revenues $ 2,416.7 $ 3,245.8 (26)% $ 4,152.7 (22)%
The following table presents our revenues, by revenue type, as a percentage of total revenues for the periods presented:
Years Ended December 31,
2010 2009 2008
Revenues:
Advertising 53% 54% 50%
Subscription 42 43 46
Other 5 3 4
Total revenues 100% 100% 100%
Advertising Revenues
Advertising revenues are generated on AOL Properties through display advertising and search and contextual advertising, as described in "Overview—
Our Business". Agreements for advertising on AOL Properties typically take the form of impression-based contracts in which we provide impressions in
exchange for a fixed fee (generally stated as cost-per-thousand impressions), time-based contracts in which we provide a minimum number of impressions
over a specified time period for a fixed fee or performance-based contracts in which performance is measured in terms of either "click-throughs" when a user
clicks on a company's advertisement or other user actions such as product/customer registrations, survey participation, sales leads or product purchases. In
addition, agreements with advertisers can include other advertising-related elements such as content sponsorships, exclusivities or advertising effectiveness
research.
In addition to advertising revenues generated on AOL Properties, we also generate revenues from our advertising offerings on the Third Party Network.
To generate revenues on the Third Party Network, we purchase
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