Exact(4)
Until the end of 2000, America Online would boast each quarter about its advertising backlog, or the value of signed contracts to advertise in the future.
And America Online's closely watched advertising backlog -- a measure of contracts for revenue in future quarters -- showed no growth in the quarter.
And the merged company explained that it stopped disclosing the volume of AOL's advertising backlog because the sale of advertising packages across its AOL and Time Warner divisions would make the figure irrelevant.
Now to the brouhaha about advertising backlog.
Similar(56)
The company for the first time stopped revealing AOL's backlog of future advertising revenue under contract.
In part, the chaos that ensued stems from the way that Mr. Pittman and Mr. Berlow, his chief advertising salesman, built that $3 billion backlog.
AOL Time Warner has said the company expects the AOL division to report annual earnings before interest, taxes, depreciation and amortization of $1.7 billion, down from $2.2 billion the previous year as AOL burned through a backlog of old advertising contracts signed during the peak of the Internet boom.
In a conference call last week, Time Warner said that for the first time since the boom its backlog of long-term online advertising contracts had stopped declining, which means the new advertising revenue should begin to climb in the fourth quarter, helping its profits.
The company said that its backlog of commitments to advertise in the future increased by $300 million in the quarter, to $3 billion, twice the level of a year ago.
Moreover, America Online says it now has a backlog of $2.4 billion worth of advertising contracts scheduled to run in the next several years.
The company also said that $220 million of the $412 million it reported for advertising and commerce revenue at the AOL service last quarter came from that backlog.
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