Advertising, Third Quarter Earnings | featured news

Shares in AOL have jumped 14% after the US internet firm reported a sharp rise in advertising revenues. Advertising sales jumped 7% to $340m (£212m), boosting net profit for the third quarter to $20.8m, compared with a loss of $2.6m a year ago.

(Reuters) - The New York Times Co reported worse-than-expected results on Thursday as advertisers cut spending on both print and digital outlets, sending shares down 12 percent.

Facebook lost $59 million in the third quarter, but the newly publicly traded social networking site saw its shares soar on Wall Street early Wednesday. Facebook shares gained $4.35, or 22%, to $23.85 in early trading, after the company reported gains from mobile advertising.

Google’s core business, search advertising, seems so far to have weathered the economic doldrums that have hurt other sites and publications relying on ads.

Online advertising revenues in the U.S. seem to be stabilizing. The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers released third-quarter figures showing that online advertising in the U.S. approached $5.5 billion, up 1.7 percent from the second quarter of 2009, but still down 5.4 percent from the same quarter a year ago (which is in line with the losses during the first half of the year). As you can see in the chart, there was a big drop-off after the fourth quarter of last year, and the first three quarters of this year have been flat.

The New York Times Company reported a $35.6 million loss for the third quarter on falling advertising revenue, but deep cost-cutting and newspaper price increases helped beat projections.

Google's third-quarter earnings rose 27% as the company saw improvement in the online advertising market. Revenue rose 7.3%.