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To: Lizzie Tudor who wrote (46900)	3/23/1999 12:29:00 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 164684

Are you watching eFax?

To: Lizzie Tudor who wrote (46900)	3/23/1999 2:39:00 PM
From: Glenn D. Rudolph	Respond to of 164684

7 most profitable revenue stream they have when it matures. Today, DoubleClick has over 15 DART for Advertiser clients (on both the agency side, like SIG, MediaSmith, and US Web/CKS, as well as individual advertisers like Dell and Travelocity), and we have every reason to suspect that the list will grow nicely throughout the rest of 1999. Boomerang Should Be A Real Hit With E-Commerce Sites Though Boomerang isn't yet out of Beta testing, we think the potential market could be sizable, considering its functionality and applicability. Boomerang offers the ability to reach and re-target customers that have already visited a Web site. Once a visitor leaves, say, the Dell.com site, with the use of Boomerang, that user can be marketed to again by Dell if they are visiting any of the 6,400+ unique sites within the DoubleClick Network. This is an enormous benefit to e-commerce sites in particular, since it allows Dell.com to segment their audience based on behavior (users who haven't been to Dell.com; frequent Dell.com users; users who have visited Dell.com's home page only but haven't drilled down for more information; etc.) and then market to them individually depending on, in this example, how much they used the Dell.com site and what they used it for (e.g. purchase or information retrieval). This is an incredibly powerful customer acquisition and retention tool for e-commerce sites, since they depend on their ability to target their customers and establish a ongoing relationship with them. We expect both e-commerce sites as well as brand advertisers will find this product extremely compelling. There Are Other Important New Products And Services Coming Other products should also provide some nice catalysts in the next few quarters. We expect DART for E-commerce will launch in Q2 (this is essentially DART combined with Boomerang); we know that Double Click is already working with three E-commerce players (one of which is Dell.com). By Q4, DoubleClick expects that DART for E-commerce will incorporate back-end capabilities (like integration with an e-commerce site's inventory and logistics systems), so that E-commerce sites can instantly determine the economics of offering coupons, promotions, and other incentives to customers that have, say, purchased a Dell laptop. Since only 2% of visitors to an E-commerce site actually make purchases, this back-end integration makes enormous sense, since it allows e-commerce sites to manage the conversion of browsers into buyers (hopefully driving conversion rates up). International Is A Market Opportunity That Should Really Hit Its Stride In 1999… DoubleClick has made aggressive investments in building out a direct sales force internationally, since it believes that (1) on a growth rate basis, Internet users worldwide are growing even faster than in the US, (2) as much as 30% of domestic sites' traffic is coming from overseas and is wasted since it can't be monetized by US marketers and, (3) amassing this international inventory into one media buy could result in significant revenue opportunities from international marketers wanting to advertise to International Web surfers (or conversely from US marketers who want to target international Web surfers). …Because Most International Inventory Isn't Being Monetized Most US-based Web sites cannot effectively monitor international traffic beyond simple domain recognition (e.g. .uk, .fr, .de, etc.). But DoubleClick has amassed an enormous IP database that allows them to match IP addresses to their origination. For example, one of the largest ISPs in England is freeserve.com, which, if you simply parsed your users by suffix you

To: Lizzie Tudor who wrote (46900)	3/23/1999 2:50:00 PM
From: Glenn D. Rudolph	Respond to of 164684

16 NBC has had great success selling in conjunction with its mini-series (Merlin, Alice In Wonderland, The ‘60s, etc.) For The ‘60s, NBC teamed up with HSN - representing the first time HSN teamed up with a major network to sell products related to a specific programming. Well, clearly NBC was pleased with the results. In fact, so pleased that earlier this month, NBC and GE Equity agreed to buy a 20% stake in ValueVision - one of television's three home shopping networks (the two others are HSN and QVC). For anyone who misunderstood this deal and thought it was merely the linking up of two television networks, the press release tries to make it very clear what they'd like investors to believe it really at stake here. NBC's plans for ValueVision include “rebranding the ValueVision television home-shopping network in conjunction with an Internet portal”; “NBC will take a leadership role in assisting ValueVision with a redesign of its current Internet shopping site (vvtv.com) and will explore opportunities to link their [NBC and ValueVision] various Internet properties as part of the new alliance.” Before any one comes away thinking NBC bought into the lucrative e-commerce marketplace “cheap” at $56 million, let's examine what they really got with ValueVision. ValueVision reaches 21M homes via either full-time or part-time cable television distribution, yet its web site does not rank among the top 500 sites in terms of reach. After a brief visit to vvtv.com, we saw an awful lot of banner ads encouraging us to use the 800 number rather than order off the web. While this deal certainly positions NBC to exploit a new revenue stream - home shopping through cable, we're not convinced it further leverages NBC in terms of Internet e-commerce opportunities The Internet Delivers For The Shipping Industry Last week, FDX (parent corp. of FedEx) reported better than expected earnings ($0.52 vs. $0.41) . Much of the upside came from a tax-rate change and lower fuel prices, but management continues to bang the Internet drum claiming the company is benefiting from the growth in e-commerce and shifting supply-chain model. While direct sales channels and shifts in inventory management and logistics have driven the growth of the express package delivery business for some years, we are surprised that even today analysts and others continue to discount the impact of the Internet on the industry. Many feel that the growth of e-commerce has already been factored into the business. Given the difficulty we have properly factoring in the growth of e-commerce on behalf of Internet companies, we are a bit baffled that the same does not hold true for shipping analysts. We'll continue to keep our eyes on the effects of e-commerce on the shipping industry over time. Internet Enterprise Applications: The Pipeline Grows Over the last year a number of Internet applications start-ups like Ariba and Commerce-One have emerged that are focused on delivering software that connects large corporations to their partners, suppliers, and distributors using the Internet as the application platform and architecture. Regular readers of The Internet Capitalist know that we believe that the business-to-business e-commerce and security software market will mature nicely as 1999 unfolds, principally because Y2K concerns (and budgets) will have diminished. Because these new players are starting to have some investment impact on the traditional ERP applications players (SAP, BAAN, etc.)