Application layer multicasting has emerged as an appealing alternative to network layer multicasting in wireline networks. Here, we examine the suitability of application layer multicast in ad hoc networks. To this effect, we propose a flexible receiver-driven overlay multicast protocol which we call Application Layer Multicast Algorithm (ALMA). ALMA constructs an overlay multicast tree in a dynamic, decentralized and incremental way. First, ALMA is receiver-driven: the member nodes find their connections according to their needs. Second, it is flexible, and thus, it can satisfy the performance goals and the needs of a wide range of applications. Third, it is highly adaptive: it reconfigures the tree in response to mobility or congestion. In addition, our protocol has the advantages of an application layer protocol: (a) simplicity of deployment, (b) independence from lower layer protocols, and (c) capability of exploiting features such as reliability and security that may be provided by the lower layers. Through extensive simulations, we show that ALMA performs favorably against the currently best application layer and network layer protocols. In more detail, we find that ALMA performs significantly better than ODMRP, a network layer, for small group sizes. We conclude that the application layer approach and ALMA seem very promising for ad hoc multicasting.