The add alias option is used to create an alias representing a database name.
sp_webservices 'addalias' alias_name , database_name
alias_name
The alias for the specified database. This parameter is required. If you define an alias name for a specific database, the producer displays the alias name instead of the database name. If you have not defined an alias name, Webservices uses dboralias as the database name.
database_name
The name of the database for which the alias is specified. This parameter is required.
Adds marketing_alias as the alias name for database marketing_db:
sp_webservices 'addalias', marketing_alias, marketing_db
An alias provides greater control in specifying the portion of the URL representing the database name. Used with the userpath option of the create service command, an alias provides complete control over the URL used to access a user-defined Web service.