Study questions potential of portal tenancy deals

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Miami -- Countering the generally rosy picture of the future of e-commerce on Web portals, Jupiter Communications released research Tuesday that indicates expectations for portal tenancy deals are often overly ambitious. By 2002, online commerce driven directly by the primary portals will grow only slightly, from 18% in 1999 to 20% in 2002, according to the research. The study found most e-commerce executives presiding over deals with Internet portals didn't consider themselves ``highly likely to renew'' their current agreements. ``Portals must develop compelling loyalty programs that help deliver repeat purchases for commerce partners, or they will risk losing the ability to garner huge anchor tenancy deals,'' said Marc Johnson, director of Jupiter's Digital Commerce Strategies research practice.
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