Valassis Communications Inc., Livonia, MI, has signed an agreement to purchase up to 50 percent of Pacific Palisades, CA-based Merge LLC and launch an Internet coupon distribution and proprietary target-marketing system, company officials said. Terms of the deal were not disclosed.
The new coupon program will not be a Web site, but software technology that allows affiliated Web sites to deliver and manage targeted coupons, promotions, and advertisements through Merge’s server-based network.
The companies plan to complete regional testing of the program this summer and roll out nationally soon after. Valassis officials said they expect the system to be reaching “a significant percentage” of the entire U.S. Internet audience by the end of 1999.
“Most Internet endeavors are designed to build traffic, and then later figure out a way to generate revenues,” says Merge ceo Bruce Etinger. “Our system is designed to generate revenues as soon as people start using it.”
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