Francis,
I took the liberty of pasting some of the report you mentioned regarding NETZ from GASKINS IPO rating service.
Competition
DoubleClick focuses on the upper end of second tier web sites -- because the top
ten web sites (Yahoo, AOL, etc. that generate 60% of web traffic) have their own,
direct sales forces.
Direct competitors offer other website networks. The three primary competitors
are Cliqnow, 24/7 and Softbank Marketing.
Companies in this category can segment incoming users (for advertisers) across
multiple websites, if the websites collect registration data and store it in "cookies" on the
users' computer. For example, ad agency media buyers can target 35 - 45 year old men
who earn $75 -$90,000 per year, if the registration data exists.
CLIQNOW
Cliqnow focuses on vertical market website networks which include golf, financial,
college, technology, travel, home and kids. Cliqnow targets web sites a notch below
DoubleClick in traffic volume. With about 130 website clients and 15% of
DoubleClick's headcount, Scott Paternoster, Executive Vice President of Sales, said in
an interview, "Based on annualized December, 1997 quarter results, Cliqnow is
profitable."
24/7
Another competitor, 24/7 offers a network of about 100 upper-end 2nd tier sites
including ATT WorldNet, Fox News, Readers Digest, Rolling Stone, Better Homes and
Gardens, Reuters News, Comedy Central. None of their sites account for more than
15% of overall billing. Additionally, 24/7 has a strategy to service the smaller sites
through the ContentZone, where approximately 3200 sites are packaged and sold
similarly to GeoCities.
In an interview, David J. Moore, CEO of 24/7 said "Site for site, 24/7 has a better
line up than DoubleClick, with the exception of Alta Vista." He continued, "DoubleClick
has their own adserving technology which is proprietary to them, yet adserving
technology is relatively easy to secure. Adserving technology will become a commodity.
We are presently using IMGIS. There are 4-5 others which could meet our needs. The
biggest difference between 24/7 and DoubleClick is that their strategic advantage is
technology while ours is media expertise."
SOFTBANK INTERACTIVE MARKETING
The SOFTBANK Network was launched on September 15, with 28 Web sites
and 45 million available impressions. As of early January, 1998 the network had more
than 106 million available impressions from 53 sites.
Ted West, Executive Vice President and Softbank co-founder, said in an
interview, "The SOFTBANK network recently signed leading-brand advertisers, which
include AT&T, Disney, Fisher/Price, Microsoft, Sprint and Toshiba."
"In my view," he continued, "there will be two, three and maybe four branded
firms with creditable affiliated web site networks, serving the second tier. We think of
the first tier as the top 25 sites (in traffic).
"And the web traffic trend line is going our way. For a long time the top 25 sites
got 90% of the ad dollars. The most recent figures show a decline to 80%.
"In terms of technology, we already think of ourselves as having better technology
than DoubleClick and others. We have a series of banner and e-commerce technology
that differentiates us, including technology developed by EchoMedia, a sister company
also owned by ZULUtek (NETZ), the holding company which recently purchased a
majority interest in Softbank Interactive Marketing," he concluded.
AIM SMART
In delivering micro-segmented demographics to advertisers, AIM Smart (OTC:
AIMS) may well be the leader.
In cooperation with Simon Debartolo, The Rouse Company and other leading
indoor shopping mall owners, AIM Smart is rolling out interactive Pavilions across the
country.
Shoppers receive free Internet access (which includes targeted ads from mall
retailers and consumer products companies) after providing demographic information
about themselves.
"The current mall rollout schedule will be able to reach 28 million households or
100 million shoppers, " said Robert Van Duren, AIM Smart president, in an interview.
"AIM Smart's national rollout plan validates a new advertising channel," he
continued, "It's a natural marriage between brick & mortar malls and Internet shopping.
"A national network of mall/Internet locations will enable large advertisers to stage
new product rollouts on a very specific, targeted basis. We believe the AIM Smart
approach is the first validated advertising approach that permits mall advertisers to easily
measure advertising results.
"For more background on AIM Smart your readers may want to see the recent
Inter@active Week article titled, Aim Smart Lures Shoppers With Free Access," he
concluded. |
