—Paid Search revenues declined 12 percent to $152 million, due to lower query volume, Martin said. Unspecified AOL properties also produced lower revenues per search query, and lower click-through rates were also offset by increases in cost-per-click. Martin: “We do expect search revenues to remain pressured due to the continued migration of domestic users to AOL.com and away from the client, and changes put into place by Google (NSDQ: GOOG) that reduce our effective cost-per-click.”

—Third party revenues dropped 29 percent to $133 million. This segment was hurt by the absence of education provider Apollo Group, which contributed $16 million to the year-over-year decline—that’s about one-third of those revenues, Martin noted. In August 2007, Apollo, which had an exclusive ad management deal with AOL, acquired online advertising network Aptimus. That led to the ending of its agreement with AOL in Q108, which means that third party revenues will no longer have that comparison factored in. But that doesn’t mean the segment will have more positive numbers: excluding Apollo, third party revs were still down 23 percent. That separate decline reflected softness in retail and autos, and lower demand in general for both performance and branded advertising on AOL’s network.