Priceline.com, First USA Sign Marketing Agreement

Stamford, CT-based Priceline.com, the name-your-own-price
e-commerce operation, signed a five-year, performance-based marketing
agreement with Visa card issuer
First USA that could generate up to $200
million over five years for Priceline.com.

The companies said they expect the marketing program to be rolled out over
the next several months. Specific financial arrangements were not disclosed.

Under the priceline.com “adaptive marketing” program, First USA will enable
customers to increase the amount of their priceline.com purchase offers by
specified amounts by applying for a First USA credit card or using a First
USA credit card to complete their online transaction.

For example, a customer offering $200 for an airline ticket who applies for
or uses a First USA credit card might have $40 instantly added to the
purchase offer, increasing the customer’s chances of getting a ticket at no
additional cost. Priceline.com also will offer other promotions linked to
First USA’s customer acquisition and loyalty programs.

“This alliance represents a win for consumers, a win for priceline.com and a
win for First USA,” said Richard S. Braddock, chairman and CEO of
priceline.com. “We believe that many priceline.com customers will accept
First USA’s promotional offers in return for even more savings or increasing
their chances of getting leisure airline tickets, hotel rooms or future
priceline.com services.”

“Priceline.com will enable First USA to extend its leadership position in
next-generation credit card marketing,” said Jim Stewart, executive vice
president for partnership and Internet marketing at First USA, a unit of Bank
One Corp. “The concept of moving beyond online advertising and promotions
into becoming an integral part of online e-commerce transactions and
immediately benefiting the customer is groundbreaking.”

Priceline.com’s adaptive marketing programs were invented by Walker Digital,
a Stamford, CT-based intellectual property laboratory where Jay Walker is
founder and chairman (Walker is also founder and vice chairman of
priceline.com). Walker Digital has various patents pending on the use of
adaptive marketing during e-commerce transactions.

“For the first time, the Internet makes it possible to acquire customers for
third parties while at the same time offering immediate and tangible benefits
to online buyers of goods and services,” said Walker.

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