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Telstra to unveil Sensis search engine
Tuesday, July 06, 2004
Telstra Corp will unveil a revamp of its Sensis business next week,
as it seeks to turn a White and Yellow Pages company into a cutting
edge internet search engine able to take on the likes of Google
and Yahoo.
Sensis is expected to pull together all aspects of its business
- including its recent acquisition of The Trading Post - to form
a youth-focused search engine linking up the online White and Yellow
Pages as well as sites such as Whereis and Citysearch.
It's a pre-emptive strike by Telstra to protect Sensis' extensive
advertiser base from other online rivals.
Sensis will announce its new internet search engine at a briefing
for analysts and media next Tuesday.
But analysts are most interested in an update of how classifieds
newspaper The Trading Post is fitting in with Sensis.
The Trading Post was purchased for $636 million in March, following
Sensis' acquisition of the Australian assets of internet search
company Looksmart and the purchase of a majority stake in IT company
Invizage Technology.
"The big issue is where (Telstra) see the business going now
they have acquired Trading Post - what they are going to do with
that part of the business and how it's going to be integrated with
Sensis," said Graeme Woodbridge from CommSec.
"What aspects of its integration with Sensis will add value
to Trading Post?"
Sensis has embarked on a multi-million dollar advertising campaign
in recent weeks to raise awareness of its brand, with the word "Sensis"
written in chalk on city footpaths, as well as using traditional
advertisements.
Previously, Sensis' general manager of search Greg Ellis has said
the new search engine would be aimed at people aged 15 to 28.
The company has said the new search strategy will link up elements
of online, voice, wireless and print.
Sensis has already launched a new operator-assisted voice service
under the phone number 1234, and there's speculation the new website
will be www.1234.com.au.
Analysts say Telstra is moving now to prevent advertisers switching
from Sensis to rivals such as Google or Yahoo.
Those search engines generate their business by advertisers who
pay not just for ads, but for higher listings in searches.
It's an attractive option for businesses aimed at net-savvy young
people who might prefer to look up a restaurant or tradesman through
a search engine rather than flip through the Yellow Pages book.
"The major marketing campaign that we have seen over the last
month is getting on board before competitive launches of the likes
of Google over the next two to three months," one analyst said
yesterday.
"Google is going to be coming very aggressively here over
the next three months. Telstra is trying to be a bit proactive."
Google Australia would not comment.
Telstra shares closed two cents higher at $5.01.
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