Buys Offline Loyalty Player

  |  January 28, 2000   |  Comments

Internet direct marketer and loyalty player on Thursday ventured intothe offline world with the acquisition of Alliance Development Group (ADG),which develops and manages loyalty programs for co-branded credit cards.

Internet direct marketer and loyalty player Thursday ventured into the offline world with the acquisition of Alliance Development Group (ADG), which develops and manages loyalty programs for co-branded credit cards.

Financial terms of the transaction weren't disclosed. The purchase is another example, like that of America Online and Time Warner, of an Internet company with a high valuation buying an offline player. says the move is a way for it to expand beyond Internet loyalty programs into the larger universe.

"ADG is a recognized leader in the customer loyalty industry,'" says Steve Markowitz, chairman and chief executive officer of

"We share a common 'clicks and mortar' vision and have extremely complementary products and services. By leveraging the expertise and relationships of ADG, looks forward to offering members and merchant partners innovative products that bridge the online and offline worlds."

ADG's programs let cardholders earn points with each dollar spent on their co-branded MasterCard or Visa credit card, which they can then redeem for travel, entertainment and merchandise rewards.

ADG's partners include The Kroger Co. and several divisions of Albertsons, which are among the nation's largest supermarket retailers. ADG's bank partners include US Bank and Bank of America.

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Pamela Parker

Pamela Parker is a former managing editor of ClickZ News, Features, and Experts. She's been covering interactive advertising and marketing since the boom days of 1999, chronicling the dot-com crash and the subsequent rise of the medium. Before working at ClickZ, Parker was associate editor at @NY, a pioneering Web site and e-mail newsletter covering New York new media start-ups. Parker received a master's degree in journalism, with a concentration in new media, from Columbia University's Graduate School of Journalism.

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