From CNetNews.com:
news.cnet.com
Commentary: Brand recognition gives AltaVista time to maneuver
Gartner Viewpoint
Special to CNET News.com
December 7, 2000, 2:00 p.m. PT
By Michal Halama, Gartner Analyst
The best thing AltaVista has going for it is the obvious.
AltaVista still represents a tremendous brand that is well known on the Internet and has a good and sound
reputation. The search engine still works and is widely used.
The company's reputation has not suffered damage except among those--comparatively few--who have
tried to get the free ISP service and were disappointed. Few such users will likely switch from a search
engine that gets them results because an associated venture failed--that would be like iMac users
deserting Apple because the Newton did not do all the company promised.
Certainly, AltaVista needs to improve as a search engine to keep up with other developing services that are also free. However, Gartner
believes that AltaVista is not that far behind in user perception.
For AltaVista, the bottom line is that its consumer brand awareness continues to hold its value and, at least for now, will likely continue
to bring in revenue from portal advertising, as well as structured and sponsored search results. (In a search engine for enterprises to
buy, technical development is of course more important.) In the long term, whoever leads AltaVista needs to continue development
efforts or else its value will disappear.
For now, the AltaVista brand has real financial value, so CMGI, which owns a majority stake, may well be tempted to sell it. However,
that could undermine its Internet strategy. CMGI would be hard pressed to buy or build anything with as much recognition as AltaVista
has. |
