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Technology Stocks : AltaVista Company (ALTA)

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To: Glenn Petersen who wrote ()2/1/2000 6:26:00 PM
From: Glenn Petersen  Read Replies (1) of 110
 
ALTA to give away search engine:

zdnet.com

AltaVista gives away search engine
The portal will begin giving away its search engine and will start paying sites for referrals.
By Jennifer Mack, ZDNet News
UPDATED February 1, 2000 7:27 AM PT

Internet portal AltaVista.com announced Tuesday it will begin giving away its search engine and will start paying sites that successfully refer people to the portal.
As part of its new AltaVista Affiliate Network, the portal will let Web sites big and small offer AltaVista services such as search, stock quotes and language translation free of charge.

In addition, AltaVista, owned by CMGI Inc. (Nasdaq: CMGI), plans to pay the sites referring people 3 cents for every click-through. AltaVista CEO Rod Schrock, 40, estimated that each visitor will need to visit at least four pages on AltaVista to make the payoff profitable.

"It?s really a long-term initiative," Schrock said. "It is aggressive." 10,000 'affiliates' by mid-February
More than 1,600 sites have applied for membership in the program, and Schrock predicted AltaVista will have 10,000 "affiliates" in about a month. AltaVista plans to target the owners of personal home pages. To join the network a site must demonstrate that it is a valid, working Web site that is updated on an ongoing basis.

"We want to make our brand more pervasive on the Web," Schrock said.

Affiliate sites will be given the HTML code to feature an AltaVista search box and other services on their Web pages. Once a visitor has typed in a search request, the results will be served up on an AltaVista page.

AltaVista estimates that 60 percent of its traffic originates outside North America. The company sees this initiative as an opportunity to cement itself as a major player in the global Internet market.

Search Engine HelpDespite a recent advertising initiative featuring celebrities such as Pamela Anderson that appeared to target a broad-based Internet audience, Schrock denied the Affiliate Network marks a change in strategy away from trying to compete with generalized portals such as Yahoo! (Nasdaq: YHOO) and America Online (NYSE: AOL). Schrock, who just celebrated his one-year anniversary with the company, claimed that was never AltaVista's strategy.

"We are not trying to be a general-purpose portal," he said. "We want to be world-class in a few areas. Those are going to be search, e-commerce and financial information services. Probably over time we?ll pick another area or two."

In addition to giving affiliates access to its services, AltaVista will also provide, free of charge, traffic reports that contain information about advertising click-through rates and total number of visitors.
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