Information from SEC IPO filings from Doubleclick:
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(Page 27)
INDUSTRY BACKGROUND
THE INTERNET AND THE WEB
The Internet and the Web have enjoyed unprecedented growth in recent years.
Industry sources estimate that by the end of 1997 there will be over 29 million
Web users in the United States and over 50 million users worldwide, and the
number of Web users is expected to increase to 72 million in the United States
and 129 million worldwide by the end of 2000. Web users are spending an
increasing amount of time on the Web, and according to a recent study, as of
April 1997, an estimated 51% of Internet users access the Internet for 10 or
more hours a week. The growth in the number of Web users and the amount of time
users spend on the Web is expected to continue as new technologies, such as
multimedia capabilities, are developed and adopted, as Web access and bandwidth
increase, and as Internet content improves and becomes more dynamic.
The Company believes that as electronic commerce increases, advertisers and
direct marketers will increasingly seek to use the Web to locate customers,
advertise and facilitate transactions. Online transactions can be faster, less
expensive and more convenient than transactions conducted via human interaction.
A growing number of users have transacted business over the Web, including
trading securities, buying goods, purchasing airline tickets and paying bills.
Over 20% of United States Internet users are estimated by industry sources to
have made a purchase over the Web. Industry sources estimate that purchases of
goods and services over the Internet are expected to increase from $2.6 billion
in 1996 to $220 billion in 2001.
28
INTERNET ADVERTISING
The Web is emerging as an attractive new medium for advertisers due to the
growth in the number of Web users, the amount of time such users spend on the
Web, the increase in electronic commerce, the interactive nature of the Web, the
Web's global reach and a variety of other factors. Internet users generally have
demographic profiles advertisers desire. According to industry sources, in 1997,
an estimated 47% of Internet users had a college degree, 67% were between the
ages of 18 and 44 and their mean household income was $53,000. The interactive
nature of the Web gives advertisers the potential to establish dialogues and
one-to-one relationships with potential customers, receive direct feedback on
their advertising and adapt their advertising to respond to such feedback. The
Web also provides advertisers with the opportunity to reach broad, global
audiences, since Web sites can be accessed from anywhere in the world, and to
target their advertising to populations within specific regions or countries, to
users with desirable demographic characteristics, and to people with specific
interests. Internet advertising also has the potential to offer advertisers the
ability to measure the number of times that a particular advertisement has been
viewed, the responses to the advertisement and certain demographic
characteristics of the viewers of the advertisement. Accordingly, the Company
believes that Web advertising has the potential to be a cost-effective means of
reaching a significant number of users with desirable characteristics.
The unique characteristics of Internet advertising, combined with the growth
in the number of Internet users and their attractive demographic profiles, has
led to a significant increase in Internet advertising. Industry sources believe
that the dollar value of Internet advertising in the United States will increase
from $551 million in 1997 to $4.0 billion in 2001, representing a 64% compounded
annual growth rate. In comparison, industry sources estimate that $175 billion
was spent in 1997 on traditional media (television, radio, cable and print)
advertising in the United States. To date, the leading Internet advertisers have
been technology companies, search engines and Web publishers. However, many of
the largest advertisers on traditional media, including consumer products
companies, automobile manufacturers and others, have expanded their use of
Internet advertising, and the Company believes that Internet advertising will
become an increasing component of their total advertising budgets.
DIRECT MARKETING
The Company believes that the Internet represents an attractive new medium
for direct marketing,......
THE PERSPECTIVE ALSO SAYS:
( Page 21 last paragraph...)
The Company has incurred significant losses since its inception [Jan 23, 1996], and as of
December 31, 1997 had an accumulated deficit of $36.5 million,.......
(Page 22 2nd para)
REVENUES
The Company's revenues are derived primarily from the delivery of
advertisements on the Web sites of Web publishers on the DoubleClick Network.
Revenues increased from $6.5 million for the period from January 23, 1996
(inception) through December 31, 1996 to $30.6 million for the year ended
December 31, 1997......
To date, the Company has not derived significant revenues from its
DART Service, DoubleClick Direct or international operations.....
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[there is a lot more after this......]
A last thought, CAVEAT EMPTOR, I am just relaying public information from:
edgar-online.com
Dave |
