2. Overview
DoubleClick
Abacus Direct
The “DoubleClick-Abacus Merger”
Products
Business model
Privacy concerns and remedy
AGENDA
3. • Kevin O’ Conner founded DoubleClick in 1996
• Industry leader in Internet advertising
• Network of 1500 websites
• Banner ads were placed on 11000 websites
• Early 2000, DoubleClick had:
• 1,800 employees.
• 7,000 customers.
• Offices in 30 countries.
• Market capitalization of 10 billion.
• February 2000, USA Today revealed it’s plan to merge
with Abacus Direct
DoubleClick- AN OVERVIEW
4. • Leader in collecting information from catalog
purchases
• Five-year buying profile of 88 million households
• Database of personal information like:
• Name
• Address
• Phone number
• Credit card numbers
• Income
• Purchases history
Abacus- AN OVERVIEW
5. • Integrate DoubleClick's database with Abacus’
(formation of Abacus Online)
• Merge online clickstream data about an user with the
offline purchase data
• Provide users an option of “opt-out”
• Customize advertisements w.r.t individual consumers
DoubleClick-Abacus
MERGER
6. Division Product Technology
Media •eMail List
•DoubleClick
Sweepstakes
•Automated mailing
lists
•Automated online
sweepstakes
TechSolutions DART
(Dynamic,
Advertising,
Reporting, Targeting)
•Built on ASP/SaaS
ad serving
technology
•Run using cookies
Data Abacus Online •Specifically
Requested
Information +
ClickStream Data
DoubleClick PRODUCTS
7. DoubleClick generated revenue via:
• Advertising software
• Sale of license
• Installation and maintenance
• Targeted advertisements
• Putting up banner advertisements and “click-thrus”
• Using DART to monitor consumer behavior
BUSINESS MODEL
10. • Forrester estimated online advertising would to
increase from $3.3 billion (as of 1999) to $33 billion (as
of 2004)
• Revenues for 2000 Q1 was 179% higher than last
quarter
• TechSolutions grew by almost 19% from last year
• Operating expenses under all heads was decreasing
for 1999-2000
VIABILITY OF THE MODEL
11. • Changing privacy policies without intimation
• Violating policies without detection
• Providing consumers no option of “opt-out”
• Tracking consumers without any connection to a
company
PRIVACY CONCERNS
12. • Tie up with websites which are TRUSTe, and
SecureAssure enabled.
• Provide P3P enabled software to detect violations
• Inform consumers about “opt-out” policies and click
stream data collection
• Identify and track only actual users of products of a
company
ADDRESSING PRIVACY
ISSUES