Alternate And Adtegrity Form Dot Com Alliance

May 28, 2002
| By Katy Rent |
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GRAND RAPIDS — As the e-services solutions market strives to survive, two area marketing agencies announce they have formed an alliance to strengthen the chance for survival.

They are Alternate Marketing Networks Inc. and Adtegrity.com Inc.

Adtegrity.com provides advertising representation for niche Web sites that publish original content.  Under the firms' alliance, Adtegrity's role will be to assist Alternate Marketing in its advertising and logistics consultation services to various industries.  The assistance, according to a formal statement, will mean furnishing expanded online advertising choices to Alternative Marketing's clients at competitive rates.

Under the alliance, Alternate Marketing will be able to offer national clients expanded on-line marketing programs on niche sites represented by Adtegrity.com. The expansion would include women-oriented entertainment, and business and finance sites that will augment its existing newspaper and sampling sites.

Phillip Miller, chairman and CEO of Alternate Marketing, said in a statement that, "The content categories Adtegrity.com reaches serve as a fine complement to our own network of newspaper clients, and we look forward to maximizing our collective strengths in targeted demographics, geographic zoning and performance-based advertising solutions.

"Partnering with Adtegrity.com," he added, "will allow us to give our clients more options for targeted online advertising in order to better meet their needs."

Adtegrity.com said the alliance allows it to present targeted demographic-based groups to potential advertisers, while attaining the highest revenues for the Web site publishers.

"This can also be achieved by employing dedicated sales personnel committed to creating and maintaining relationships with key advertisers and advertising agencies," said Scott Brew, president and CEO of Adtegrity.com.

Although the overall advertising market has experienced a slowdown during the first quarter of 2001, Adtegrity.com remains optimistic.

"We have nearly doubled our customer base and greatly improved sales," Brew said.

"We have successfully decreased spending, while adding new customers and serving more advertisements. We believe that strategic partnerships and alliances with companies like Alternate Marketing Networks will enable us to expand our service offerings and scale our customer base while keeping costs low."

The alliance enables both companies to present advertisers interested in on-line and off-line campaigns with an integrated campaign that targets their message to a specific population segment in precise areas of the country.

Alternate Marketing says it brings its strength with traditional offline clients to the table, while Adtegrity.com offers broader expertise in the online advertising arena.

"We are pleased to have crafted this alliance with Alternate Marketing Networks, which should expand the horizons of both our companies," said Brew.

"We look forward to sharing our online expertise with Alternate Marketing Networks, and feel we will be able to benefit through increased penetration of our services into traditional offline brands and agencies."

Over the past six months Alternate Marketing Networks has streamlined its corporate structure to focus on products and services in advertising and marketing, and logistics and distribution, while reducing overhead expense.

Alternate Marketing Networks has merged its current online division, which consists of ilikesamples.com and AdPressMedia.com, with U.S. Suburban Press, its network of suburban newspapers.

During the fourth quarter of 2000, Alternate Marketing Networks reduced its selling, general and administrative (SG&A) expenses by 32.5 percent, in large part due to elimination of expenses associated with its in-home sampling business, which was sold in 2000.

The company expects to again achieve double-digit overhead reductions during the first quarter of 2001, resulting from the streamlining of its overhead structure to better reflect its current operational needs.

Reductions in travel, advertising and other selling-related expenses have not detracted from Alternate Marketing NetworksÆ core business functions.

"We have repositioned the company to take advantage of the second wave of Internet commerce," said Miller. "Marketing alliances such as this will enable us to broaden our service offerings and reduce our overhead expenses without impacting our primary business objectives.

"The overall advertising market, whether online or offline, experienced a slowdown during the first quarter of 2001. As with other companies in our industry, we expect this softness will have an impact on our first-quarter results. We have already begun to see an increase in orders during the second quarter, and anticipate that the remainder of 2001 will yield better results."

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