DLJ Internet Conference Notes (from Briefing.com)
Doubleclick Summary
Doubleclick (DCLK) is both a technology company, providing technology for target web advertising, and distributing ads. Doubleclick sells ads for the content provider, acting as a representative agent, and then controlling display of all ads. The content provider only ads the technology to their site. The ads are chosen by servers at Doubleclick, based on data collected by usage at the content provider, and then displayed across the network.
Key Points
- Doubleclick plans to use proprietary DART technology to dominate advertising methodology on Web.
- DART technology targets an ad based upon the users IP address and stored data, Targeted advertising is unique to the Web (Briefing.com: This is like a search engine giving you a golf ball ad when you type in "golfing" But we don't think DART is the only technology that does this)
- AltaVista is the largest customer, delivering 44% of all revenues, contract with AltaVista expired Dec 99
- Project total Web advertising spending to rech 7 billion in 3 years.
- Doubleclick is not competitive with ad agencies, because the content provider is their client, not the ad creator
- DART Revenues: $3.3 million in Q3 from 8 billion ads. DART ads make up 16% of total revenues, 38% of profit |
