Online Advertising Innovations

1

• Online Advertising Innovations
• The Illusion of Anonymity

2
DoubleClick, Incorporatedthe birth of a company

• Created in January 1996 by Kevin OConner (now 42
  and Chairman)
• Started with the help of interactive advertising
  leader, Poppe Tyson 2
• 2mil in seed money from Poppe Tysons parent
  company, Bozell Jacobs 2

3
What does DoubleClick do?official purpose
statement

• We are a leading provider of products and
  services used by direct marketers, Web publishers
  and advertisers to plan, execute and analyze
  their marketing programs. Combining marketing
  technology and data expertise, our products and
  services help our customers optimize their
  advertising and marketing campaigns online and
  through direct mail. 3

4
E-Ads Innovationthe DoubleClick Network

• First advertising network on the Internet now
  over 1,500 high-traffic sites 2
• B2B model, no physical products they dont
  create, market, or sell content, but rather just
  the 1s and 0s of ads (and provide related
  services) 1,4

5
Stiff Competitioninnovating to stand out

• Lots of competitors ValueClick, Engage, Google,
  Yahoo!, 24/7, FlyCast, Unicast, Eyeblaster,
  aQuantive 2,5
• DoubleClicks edge array of services, building
  up widespread network, and acquisition of
  consumer information 2,3,5

6
DART Dynamic, Advertising, Reporting and
Targeting

• DART uses cookies to monitor activity
• Info recorded in databases of users personal
  preferences (user profiling)
• DART is now the industry standard for managing
  online advertising 2 example of DoubleClick
  innovation

7
Rapid Successrecord-setting growth

• Entered a nascent market in online ads and
  providing related services tracking
  click-throughs, targeting ads to specific areas
  of interest
• Feb. 96 predict they will hit 10 million
  unique users by mid-Sept. (succeeded six weeks
  ahead of schedule) 6

8
Mergers and GrowthDoubleClick buys up the market

• The company has acquired about 20 companies to
  date
• Key acquisition Abacus 2,7
• Abacus consumer information database for over 90
  million U.S. households
• Link online and offline consumer data?

9
I Will Not Be Targeted!privacy vs.
personalization

• Center for Democracy Technology launches a
  websit in 2000 to protest DoubleClicks
  invasion of privacy 9

10
Making amendsonline public education campaign

• Internet Privacy Education Campaign
• www.privacychoices.org
• Option to opt-out of DoubleClick
• Effort by company puts out over 100 million ad
  impressions, sends over 150,000 unique visitors
  to web site 10

11
Privacy fears subsidebusiness as usual

• Privacy advocates declare victory
• Main casualty OConner steps down as CEO,
  assumes Chairman position 2
• Stock 135 before outcry, rebounds to 95 after
  issue settled 11
• More privacy issues on horizon as the company
  tries to expand online ads

12
When Web Bugs Attacktransparent gifs

• ltIMG SRC http//doubleclick.net/activity
  HEIGHT1 WIDTH1 BORDER0gt
• Online ad company DoubleClick, for example, used
  Web bugs that could communicate with cookies from
  its Web site. The cookies then revealed past
  online behavior, even home addresses, IP
  addresses, and phone numbers to the bugs, and the
  bugs sent that information straight back to
  DoubleClick. 12

13
Ingenious or Fraudulent?a new class-action
lawsuit

• Latest controversy fraudulent ads
• Ads that appear to be system warnings or error
  messages entire surface is actually a hyperlink
  to another web site
• Users confused and fooled into clicking 13

14
eBay tie-ina sizable ad agreement

• Global, multi-year deal for DoubleClick
• Adding new features to eBay bid-per-click
  keyword advertising
• Will enhance efficiency of eBays online
  advertising programs 14

15
DART Motifrich media advertising

• A new area of online advertising that already
  accounts for over 25 of all online ads 15
• Partnership with Macromedia to capture rich media
  ad market new product is DART Motif (using
  Flash) 15
• Innovation again ease speed of use

16
And in conclusionDoubleClicks future is stable

• Recent profitability suggests that the company is
  here to stay 16
• Shift from selling a technology to providing a
  service ensures market share now and in the
  future advantage over diverse field of
  competitors

17
References

• 01 doubleclick.com
• 02 jobcircle.com
• 03 cbs.marketwatch.com
• 04 Toronto Star lexis-nexis
• 05 channelseven.com
• 06 DoubleClick Press Release lexis-nexis
• 07 news.com.com
• 09 ecommercetimes.com
• 10 Business Wire lexis-nexis
• 11 wired.com
• 12 cnet.com
• 13 ferencelaw.com
• 14 DoubleClick Press Release lexis-nexis
• 15 internetnews.com
• 16 internetnews.com