Hello Everybody. I am posting a synopsis of the notes I keep about DCLK. This is material that I gather from many sources including various BB's. The two million shares registered for sale are by 24/7 insiders and not NETG. I have not digested todays press release from NETG.
It would be naive to think that DCLK will never be challenged by other companies, but at present they seem to be far ahead of anyone.
I hope you find the following information usefull. :-)
NETG is in direct competition with DCLK's DART. Doubleclick has been stealing web site clients from Netgravity right and left. In the last conference call, O'Connor stated that DCLK had notched 90 steals from competitors. Although he did not mention how many had come specifically from Netgravity, in past conference calls it came out that about a third of all steals were former Netgravity clients. As for the size of the clientele, Doubleclick recently stole huge (100 million impressions +) Quote.com from Netgravity. Doubleclick does CBS, NBC, PBS, and A&E.
Doubleclick and Alta Vista have renewed their relationship for another three years. Neither side can terminate the agreement
EBAY has signed to use DART. Can you imagine how BIG that will be once EBAY starts putting ads on every page (600 million per month)?
They stole 90 DART clients from competitors. Closed-Loop marketing has gone from 0 to 200 million ads per month in one quarter.
Top ten advertisers accounted for only 16% of business, so there is very little concentration risk.
They are hard at a work on a new technology for the coming year.
Doubleclick just added a lot of international sites to the network. Here's the list :
DCLK Finland: arvopaperi online, investori, kauppateht, taloussanomat, duuni.net, kinopalatsi, inet pelit, Boxman.
DCLK Denmark: Copenhagen stock exchange, erhvervsbladet, jobnet, jobguide, E-S-E, jobs Danmark
DCLK Norway: Eyeone, Butikken, Opera Software, opera mall, scandinavian tourist guide, Bergensvarvisen, democrokita, frenover, hamar arbeidenblad, muss-dagblad, namdalsavisa, nordlands framtid, nordlys, oppland arbeidenblat, rogalando avis, sarposborg arbeidenblet, telemarksavisa, oshandposten,
DCLK Italy: meridiani, How, secondomano
You might wonder if Doubleclick ever loses sites to offset the gains. The answer is "very few." Whereas new sites constantly join the network, only a small handful ever leave. In the past few months, I've noted fewer than 10 defectors--all smaller foreign sites, like Immedia Press, TSN Scout, Meristation, ABC Startsriden, internet expo, and battle of the sexes (australian)--as compared to hundreds of additions. Overall, the Doubleclick network has shown remarkable stability--especially in comparison to rival network 24/7, which recently lost over 50 sites, including most of its biggest.
Many sites are abandoning 24/7--big sites, little sites, every type of sites. Notable defectors include The Mining Co. and Spinner. I regard it as not entirely unlikely that 24/7 will finally write off its disastrous "adfinity" software and sign a DART contract with Doubleclick. If not, 24/7 will be out of business soon (Note that 24/7's insiders have filed to sell 2 million shares in a secondary. They want out while the getting is good!)
If you haven't already, you should go to doubleclick.net and read the announcement of Doubleclick Select and Doubleclick Expanded. The original network will be known as Select, while the Expanded network will include other sites that will have Doubleclick sell some, but not all, of their inventory.
It is a strategic and clever move:
1. Other ad servers, such as NETG, can say to sites, "Hey, we've got great ad serving software--why not use us?" Doubleclick, however, can say "Hey, we have a great ad serving technology, AND IF YOU USE IT WE WILL HELP YOU MAKE MONEY--RISK FREE--BY SELLING YOUR UNSOLD INVENTORY HERE AND ABROAD. WE HAVE A SALESFORCE OF OVER 200 AND RELATIONSHIPS WITH OVER 2,300 ADVERTISERS." Now, which is the better sales pitch? This will help Doubleclick's DART put Netgravity, Accipiter, and Adforce out of business because they simply cannot offer anything like what Doubleclick has in terms of hybrid relationships.
2. It enables Doubleclick to extract greater profits from existing DART customers. The old Trojan horse strategy: "Hey, seeing as you are already using DART, why not let us sell some of your unsold inventory?"
it doesn't take much to see how the expansion of the Doubleclick network will add rocket fuel to the network's growth. Here is a sampling of names that have already signed on, each and every one a biggie:
PC Quote
USA Today
Garden Web
Prevue.com
Court TV
Daily News
Internet Movie Database
Lots of other companies (such as Flycast and Adauction) make their bread and butter selling unsold inventory in relationships like this. Now Doubleclick will be taking over that market.
Have a good evening
Robert
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