Leading%20provider%20of%20e-Marketing%20tools

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• Leading provider of e-Marketing tools
• Sep. 23, 2003
• S. Cho, C. Lu, J. Park,
• J. Weinberg, C. Yang, H. Yang

Carnegie Mellon University MSEC 2004
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OUTLINE
Brief History Business Strategy Business
Model Financials Competitive Structure
Value Chain SWOT Information Technology
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Brief History (1)19951997 Starting Business
to revolutionize Internet
advertising

• 1995
• Poppe Tyson formed DoubleClick as its new media
  division.
• Kevin O'Connor and Dwight Merriman started
  Internet Advertising Network (IAN) e-mail White
  Pages directory
• 1996
• Poppe Tyson bought IAN and merged its know-how
  with DoubleClick's client network and O'Connor
  became CEO of the new DoubleClick.
• Developed DART (Dynamic Advertising Reporting and
  Targeting)
• Partnership with AltaVista
• 1997
• Launched DoubleClick Direct, a results-based
  advertising network

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Brief History (2)19982000 IPO Broadening
services through
acquisitions growth

• 1998
• IPO and expanded its client network from 60 Web
  sites to 1,300.
• 1999
• NetGravity was merged with DoubleClick's
  Technology Solutions division
• Branched out into database marketing by
  acquisition Abacus Direct (90 million buyer
  profiles and 1,800 merchants)
• Became the target of a Federal Trade Commission
  privacy investigation into its data-collection
  methods.
• 2000
• Began working with regulators to develop online
  privacy policies.

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Brief History (3)2001 present Rethinking
its strategy and restructuring

• 2001
• Acquired _at_plan, FloNetwork, and L90's ad-serving
  software
• IPO DoubleClick Japan
• Launched Diameter and Internet marketing research
• Laid off more than 350 employees in 2000 and 2001
• 2002
• Refocused on providing e-marketing tools and
  technology
• Sold Media business, email List Services and
  acquired MessageMedia
• 2003
• Recast as marketing technology company
• 1,500 advertisers and publishers, 300 email
  marketers and 1,800 Abacus Alliance members

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Business Strategy

• Vision Leading provider of e-Marketing tools
• Mission Making marketing work better
• Help clients acquire new customers cost
  effectively.
• Help clients retain and grow profitable customer
  relationships.

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Business Model Infomediary
Marketers
Marketing solutions Marketing Data
Marketing solutions Marketing Data
Marketing solutions Marketing Data
Clicks
Ad Agencies
Web Publishers
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Business Model - products and services (1)

• Full Suite of Marketing Solutions

(Source DoubleClick.com)
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Business Model - products and services (2)
Marketing Automation Increase the efficiency of marketing planning, tracking, and analysis MediaVisor, DoubleClick Ensemble
Online Advertising Offer ad management and serving solutions for marketers, agencies and web publishers Site Directory DART (DFA, DFP)
Email Marketing Help clients manage and grow powerful email programs and enable high performance. DARTmail Premier Self Service Strategic Services
Direct Marketing Help marketers target the potential consumers, lower the costs and increase the performance Abacus Catalog Alliance Abacus BtoB Alliance
Marketing Analytics Help clients measure performance within and across channels. ChannelView SiteAdvance
Data Management Provide marketers with the tools to harness customer data for effective campaigns. Database marketing Apllications Database marketing Strategy
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Financials Operating revenues
Projected250,000
(in thousands)
Operating revenue sources - Technology
internet marketing solutions - Data data
analysis, research and collection - Media
internet advertisement sales
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Financials Revenue sources
68.8
31.2
Technology 68.8 Data 31.2 Media 0
(sold by the end of 2002)
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Financials Operating expenses
Projected150,000
(in thousands)
Operating expense sources - Sales and
marketing - General and administrative -
Product development in-house building up
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Financials Expense sources
Sales and Marketing 54.5 General
Administration 23.2 Product development
22.3
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Financials Net income
(in thousands)
From 2003, the net income was converted to
positive From 2001, the restructuring expenses
were increased
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Competitive structure
Several competitors DoubleClick dominates the
market share
Solution technology (patent such as DART)
Data expertise Global network Financial
barriers
Entry Barriers
Suppliers
Buyers
Solution S/W providers Almost no suppliers
Due to in-house Solution
Advertisers Web-publishers Direct marketers
Threat of Substitute
Offline advertising Traditional database
system
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Value chain
Human Resource ManagementSales and Marketing
37, Engineer 19, Technician 29, Staff 15
Inbound Logistics
OutboundLogistics
Marketingand Sales
Operations
Services
Cookies Customer data
Product developmentDatabase management
Technical solutions Data products
Sales Marketers Ad Agencies Web Publishers
Customer Training Call center
Information Technology(DART, MediaVisor, Abacus,
Ensemble, ChannelView)
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SWOT
Strengths
Weaknesses
Reliable scalable technology Large
Database Full suite of customer driven
solutions First mover brand name Global
presence 30 countries Financial strength
Marketing experts
Short term contracts Revenue structure
Short experiences in the international
market Not proven business model Relies on
internet infrastructure
Threats
Opportunities
Privacy issue Opt-out option Intense
competition Poor perception of the
effectiveness of online ads Regulations in
spamming Rapid change of business environment
Online Ad spending growing Increasing
broadband users Growing niche media usage The
amount of time and money spent online is growing
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Information Technology IT use
Information Technology
Business
Internet, Cookies Online banner
Business resources
Data storage Database management system IT
solutions - DART, Ensemble, Abacus etc
Targeted banner advertisement Global Internet
Value added
E-Mail, Banner Ads, Usage stats Movie files,
etc.
Distribution / Service
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Information Technology Strategic lever
Distinctive and Strategic technology
Analyzing and gather click stream data
(Source ConsumerReports.org)
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Information Technology Risks and Benefits
Risks
Privacy issue
This Monday, we revealed that the Federal Trade
Commission (FTC) began a voluntary inquiry into
our ad serving and data collection practices,
- Kevin Ryan, President
of DoubleClick Inc., Feb. 17, 2000. -
Web users have lost privacy with the drop of a
cookie..
Will Rodger,
USATODAY.com-
Benefits
Better advertising targeting, tracking and
reporting Can offer comprehensive IT solutions
from Database management to marketing plans and
campaigns.
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Q A
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Thank you!