In a duel of bids to build powerful alliances, CitySearch's announcement of a tie-up with Time Out New York was trumped Monday when its archrival, Microsoft's Sidewalk, touted the nine big advertisers it's signed up for its online city guide sites.
Not to be outdone, CitySearch president Thomas Layton told Wired News that his company is lining up national advertisers and hinted at a new international venture later this month.
The rush for ads from big companies marks a shift from the reliance of local ad markets that would accompany localized arts and entertainment listings, especially for CitySearch, which until now has focused on local ads for its five US sites. But in a medium where competition is keen for ad dollars, reaching out to big names may be practical.
While CitySearch plans to maintain much of its "local heart and soul" marketing strategy, it will now branch out to national names as well. "CitySearch has thousands of small- and medium-sized businesses already paying $50 to $100 month for homepages," Layton said. "In the next couple of months you'll see us doing some of what Microsoft is doing" in courting national companies for ads on its regional sites.
Microsoft has already signed on Bank of America, Barnes & Nobel, BMW of North America, Citibank, Club Med, Seafirst Bank, Prudential Real Estate, United Airlines, and Visa U.S.A., according to Monday's announcement. Its first Sidewalk site is scheduled to launch late next month in Seattle.
Time Out will have its own area within the CitySearch NYC site, with additional restaurant, bar, and film reviews and special features like "Cheap Eats in the City." Layton also said a partnership with another content provider overseas is in the works. In January, CitySearch teamed up with Australia's John Fairfax Holdings, publisher of the Sydney Morning Herald, to create city guides for Sydney and Melbourne.
Microsoft is still counting on local advertising to supply 70 to 80 percent of its revenues, said Bill Blass, analyst at Forrester Research, but the Sidewalk venture will start with a US$500 million commitment from its giant parent company.
Meanwhile, America Online will jump start its Digital City on the Web next month. But there probably won't be room for so many competing city guides in most cities.
"The problem is these city guides are going to lose money for a lot of years," Blass said.
