AOL's Tim Armstrong Talks Advertising, Digital Content (AOL)

According to CNBC, Tim Armstrong, CEO of AOL (NYSE: AOL) talked about future plans to remake AOL into a digital content company, during Goldman Sachs' (NYSE: GS) Communacopia conference.

Armstrong's major point was that they would be dumping off unprofitable business sectors, and focusing their efforts on profitable growth, and web content. AOL has seen Google (NASDAQ: GOOG) as well as other sites such as Facebook and Twitter gobble up the market, and Armstrong wants to bring AOL into the fray.

Brand loyalty will be a driving factor going forward, he added. If you can use Google to find videos and articles, then you will rely more on Google going forward for those needs. That could be good for AOL going forward, given their recent, five year Google ad-deal renewal and expansion. The new deal includes mobile searching and YouTube content.

In addition, with AOL's $100 acquisitions cap expiring, AOL will be free to begin buying again. Armstrong also mentioned a video strategy AOL is working on, but did not offer details. He said that the amount of money to be made in online advertising is “underestimated” and that AOL has had success launching a Jonas Brothers property, Cameo, online.

Armstrong also mentioned Apple (NASDAQ: AAPL) and more specifically, Apple TV. Citing an anecdote about punishing his kids by forcing them to watch cable instead of Apple TV, Armstrong expects that the future of television involves searchable content on demand. If he has his way, AOL will be in the thick of it all.

Shares of AOL are down slightly this afternoon, to $23.85.