Issue: New Sales
Model Shows Promise in Atlanta, Boston Trials
online search provider Citysearch will introduce its Local Pay for Performance
(PFP) advertising product in April. The national rollout follows pilot
programs in Boston and Atlanta launched late last year that company executives
say exceeded their expectations. The new model will charge advertisers
a per-click rate for online advertising that varies based on the anticipated
return on investment for each category. Rates range from as little as
US$0.10 per click to as much as US$1.50.
Currently, the company
has 100 premise reps in 16 staffed markets and 30 telephone sales reps
serving out-of-territory customers, though the latter channel will be
expanded as needed. The telephone reps are focused on targeting categories
outside Citysearch's core arts and entertainment categories, as well as
calling on accounts on the outskirts of its core markets. For example,
in the New York market, a telephone rep would call on a New Jersey-based
offers editorial content, including reviews, plus local listings in categories
focused on dining and entertainment. The sites offer local directory listings,
ratings of local businesses (restaurants, etc.), editorial content on
local arts and entertainment, customization tools, and consumer-generated
reviews of local businesses, plus a travel channel.
has 8,500 advertisers and generated revenues of US$31 million in 2002.
The company hopes Local Pay for Performance will add another 25,000 advertisers
by the end of the year.