Time Warner Inc.'s Internet services group AOL and InterActiveCorp's (IAC) Citysearch local search and  directory division announced a partnership Thursday that will see the firms share online advertising and content across their respective networks. The agreement to share content across one another's networks includes Citysearch's pay-for-performance advertising. Terms of the agreement were not disclosed. Local Advertising Alliance Includes MapQuest Under the agreement Citysearch will provide its local online content including business reviews, promotions,  merchant videos and photos for distribution across such AOL Web properties as AOL CityGuide, MapQuest, and AOL Local Search, the firms said in a joint statement. AOL will in turn allow Citysearch's local advertisers access to its Web sites which have a combined audience of over 57 million unique visitors per month according to January 2008 figures from Web traffic analysis firm comScore. AOL Search senior vice president John Kannapell sees the content sharing agreement with Citysearch as a  good match. "AOL has the largest local online network and this partnership gives us the ability to enhance our local experience, expand our reach by incorporating Citysearch’s rich local content in our numerous local sites and improve monetization of our local properties through Citysearch’s local advertising network," Kannapell said in the statement. The partnership will also be good for advertisers according to Kannapell, who sees access to a bigger inventory of local advertising as one of the advantages the partnership will offer. "The combination of the enhanced content and reach into new markets will also increase the premium local advertising inventory available to advertisers through Platform-A," Kannapell said, making reference to the advertising network division AOL created in September 2007 to combine ad sales for all its Web sites and network properties. Platform-A had previously consisted of separate Tacoda and AOL Network sales groups before a December 2007 consolidation move. Access to More Local Customers Citysearch chief executive Jay Herratti shares Kannapell's positive outlook on the partnership between the firms, which he believes can help expand Citysearch's reach. "This partnership is a classic ‘win-win’ for both companies; Citysearch’s content is great for AOL’s audience, AOL’s reach is great for Citysearch’s advertisers who will gain access to qualified local customers and the ability to deliver a consistent message across the web, and both companies will benefit from incremental revenue," Herratti said. "We are thrilled to have high-quality AOL properties and affiliates such as AOL CityGuide, Local Search and MapQuest as part of the Citysearch Local Advertising network", Herratti added. Both firms hope the partnership can help bring in increased revenue, however the move may add to speculation on Wall Street that an AOL spin-off or sale is forthcoming. Earlier this month Time Warner Inc. chief executive Jeff Bewkes revealed that the media company would split up the poorly performing Internet access segment of its AOL group, in a plan that called for the creation of a new AOL unit focused on Internet advertising. AOL's traditional dial-up Internet access service lost 740,000 customers during the fourth quarter, and saw sales fall 32 percent. Bewkes plan to separate AOL's Internet access business from its advertising and Web portal business has caused speculation that Time Warner may sell of spin off AOL's traditional access business that has seen sharp drops in subscribers. AOL and Citysearch Pen Local Content and Advertising Pact The partnership announced Thursday is expected to help AOL in the growing local advertising area, which has seen more small businesses enter the market as they become more familiar with the technology used and see the gains possible in the segment. "It basically allows them [AOL] to take advantage of the economics of local advertising without having to invest in a local sales force as extensively as we do," Herratti told Reuters in a recent article. AOL's Kannapell also sees the move as a way to increase his firm's monetization of its local Web sites. "This partnership gives us the ability to enhance our local experience, expand our reach by incorporating Citysearch's rich local content in our numerous local sites and improve monetization of our local properties through Citysearch's local advertising network," Kannapell added. Local Internet advertising is expected to outpace the overall online advertising market through 2012, according to figures from Jupiter Research's "US Online Local Advertising Forecast, 2007-2012" report. IAC shares were down $0.69, or 3.06 percent, to $21.85 per share in Thursday afternoon trading. Related Links:
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10:23 pm on Feb. 14, 2008 (utc 0)