July 5, 2004

Sensis – which owns the Yellow and White Pages telephone directory businesses – will announce its new Internet search engine at a briefing for analysts and media next Tuesday.

But analysts are most interested in how classifieds newspaper The Trading Post is fitting in with Sensis, after it was purchased for $636 million in March.

"The big issue is where they 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," Graeme Woodbridge from CommSec said.

"What aspects of its integration with Sensis will add value to Trading Post?"

Sensis has embarked on an unusual, 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.

The campaign was to raise brand awareness, with the main product to be unveiled next week.

Previously, Sensis' general manager of search Greg Ellis has said the search engine would be aimed at people aged 15 to 28.

The company has said the search strategy will link up elements of online, voice, wireless and print, using Sensis' database of advertisers with the White and Yellow Pages as well as the online Citisearch and Whereis services and the Trading Post.

Sensis also acquired the Australian assets of Internet search company Looksmart earlier in the year.

Sensis has already launched a new operator-assisted voice service under the phone number 1234, and there is speculation the new website will be www.1234.com.au.

Analysts say Telstra is trying to make a pre-emptive strike with its Sensis revamp, to protect its advertiser base from rivals such as Google and Yahoo.

Those search engines generate their business by advertisers who pay not just for ads, but for higher listings in searches.

That is 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 today.

"Google is going to be coming very aggressively here over the next three months. Telstra is trying to be a bit proactive."

Source: Mercury News

        

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