Netscape Plans $10 Million Ad Campaign

Netscape Communications Corp. in Mountain View, CA will begin a $10 million online advertising campaign next month to promote its expanded portal Web site that targets consumers.

The redesigned Netscenter 2.0 Web site features new content channels focused on arts, leisure and other areas as well as free electronic mail and a member directory.

The company also plans to advertise in newspapers, magazines and radio to raise awareness of the revamped Web site, Mike Homer, general manager of the Web site, told Bloomberg News. He declined to give a value on the traditional media advertising campaign.

The strategy is to start with the introduction online and to expand to promote it in other media, Homer said was quoted as saying.

Homer said the company wants to increase traffic on its Web site, which now has about 8.5 million daily visitors, by advertising on the major Internet search engines and other top Web sites.

Netscape will focus next on securing Web site partnerships targeting personal finance, news, entertainment, sports, children and family, and local information.

Homer told Bloomberg the company is talking to companies such as Time Warner Inc. and the major TV networks about programming agreements. It’s also talking to long-distance phone companies about selling their services in exchange for promoting Netscape’s content.

Earlier this month Netscape unveiled a three-pronged plan under which the company said it planned to focus on electronic commerce applications, infrastructure software, and the Netcenter Internet portal.