To: lawrence lerner who wrote (9312 ) 4/4/1998 2:17:00 PM From: Glenn D. Rudolph Respond to of 13594
1/29/98 Newsbytes (Pg. Unavail. Online) 1998 WL 5029158 Newsbytes News Network (c) Copyright 1998 Newsbytes News Network, LLC. All rights reserved. Thursday, January 29, 1998 Cyberian Outposts Pays America Online $5Mil, Gets Exclusive Space Sami Menefee, Newsbytes DULLES, VIRGINIA, U.S.A., 1998 JAN 29 (NB). AOL Networks [NYSE:AOL] has announced the latest in a string of major marketing partnerships with it adding Cyberian Outpost to its list of commercial vendors. Cyberian Outpost will pay AOL $5 million during the course of the one-year agreement. During the course of the agreement, Cyberian Outpost will get exclusive advertising exposure in its area to the online service's huge membership. The exposure will include spots on AOL's Shopping Channel and other computer-oriented sites, with links going from AOL directly to the Cyberian Outpost home page. Tom Ziemba, AOL spokesperson, told Newsbytes: "The reseller will be most visible from the Superstore site, but can be reached from other parts of the Computing Channel, as well." Ziemba said this arrangement will be "a great resource for our members and an outstanding opportunity for Cyberian Outpost to promote their services." A presence on AOL.com, AOL's Internet site, is included in the deal. Cyberian Outpost will share its AOL-originated sales revenues with the online service, in addition to the $5 million payment, according to an AOL source. Newsbytes notes the giant online service has been making itself into a huge online marketplace that seems to give a sense of security to its 11 million members, many of whom may not feel comfortable buying directly over the Internet. That sense of security has been worth millions in revenues, as vendors seek to hook into it. Both firms benefit from the agreement. AOL Network's Bob Pittman, president and chief executive officer, said online sales of computers and peripherals is one of the fastest growing online markets, and Cyberian Outpost is the only computer retailer with a "singular focus on the online market." Ziemba said the arrangement pertains to third-party hardware sales only. Cyberian Outpost also sells software, but the agreement doesn't give the reseller exclusive exposure in that area. Nor does the agreement give Cyberian Outpost exclusive exposure on Internet-based AOL.com. Also, firms can directly market their hardware products to AOL members, if they are not third-party retailers. AOL has made similar arrangements with booksellers Barnes and Noble, which paid $40 million for exclusive exposure to members, and Amazon.com, which paid $19 million for exposure over the AOL.com Internet service. Direct marketers CUC International paid $50 million for exposure. TelSave paid $100 million to market its long distance service to AOL members. Also, 1-800-flowers paid AOL $25 million for advertising space. Reported by Newsbytes News Network: newsbytes.com . ---- INDEX REFERENCES ---- KEY WORDS: ONLINE NEWS CATEGORY: NEWS INDUSTRY: Information & On-Line Services (IAS) Word Count: 410 1/29/98 NEWSBYTE (No Page) END OF DOCUMENT