AOL books on Barnes & Noble
In a four-year pact, Barnes & Noble is paying the online service $40 million to be its exclusive bookseller.
Barnes & Noble has sold books through links from AOL since January. The company has been the exclusive bookseller on AOL's Marketplace since March. Rival bookseller Amazon.com also has sold its books through AOL, and recently signed a deal with AOL.com, the recently expanded companion Web site to the online service.
The four-year pact extends the existing relationship to include better placement and visibility for Barnes & Noble on AOL's service, in such places as the AOL "Find Central" area and on AOL Studios properties such as Entertainment Asylum, Electra, Real Fans, Love@aol, and Digital City, according to AOL.
AOL said it will make it easier for its members to locate Barnes & Noble titles related to the content channel they are viewing. For example, according to the company, AOL users in the Personal Finance area will be able to link to related titles from Barnes & Noble.
Barnes & Noble is not the only online bookseller to strike deals with content providers to include "contextual links." Borders Books, which is scheduled to launch sometime in January, has struck a deal with CNET (CNET publishes NEWS.COM) to integrate contextual links throughout all CNET sites. And online community GeoCities announced a deal with Amazon recently to make the bookseller an anchor tenant on its site, selling titles relevant to the site's various interests as well as offering GeoCitizens a cut of the sales if they sell Amazon books off their personal home pages.
Although these links offer some of the most targeted marketing on the Web, analysts say they haven't proven themselves yet.
"It's really too early to tell," said Kate Delhagen, an analyst with Forrester Research. "The hypothesis is that they will trigger impulse buying, but we haven't heard any wild success stories yet."
However, Melissa Bane, analyst with the Yankee Group, noted, "Amazon.com won't come close to getting that kind of depth."
"If you were AOL, why wouldn't you [sign both deals]?" asked International Data Corporation analyst David Card. "Malls don't have just one bookstore."
AOL has leveraged its position as the No. 1 online service with more than 10 million subscribers to strike such partnerships. Over the last year, AOL has signed similar deals with CUC International, a major online marketing firm; Auto-By-Tel, a Web-based car-purchasing service; Preview Travel; and 1-800-Flowers.