Double click

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An insight into the controversies surrounding the DOUBLE CLICK & ABACUS merger viz. privacy concerns and privacy agreement

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Double click

  1. 1. By: Ankan Jyoti Bhattacharyya Lakshman Singh Puja Jaiswal Shabeer H Khan Sunil Manchandia DOUBLE CLICK & INTERNET PRIVACY
  2. 2.  Overview  DoubleClick  Abacus Direct  The “DoubleClick-Abacus Merger”  Products  Business model  Privacy concerns and remedy AGENDA
  3. 3. • Kevin O’ Conner founded DoubleClick in 1996 • Industry leader in Internet advertising • Network of 1500 websites • Banner ads were placed on 11000 websites • Early 2000, DoubleClick had: • 1,800 employees. • 7,000 customers. • Offices in 30 countries. • Market capitalization of 10 billion. • February 2000, USA Today revealed it’s plan to merge with Abacus Direct DoubleClick- AN OVERVIEW
  4. 4. • Leader in collecting information from catalog purchases • Five-year buying profile of 88 million households • Database of personal information like: • Name • Address • Phone number • Credit card numbers • Income • Purchases history Abacus- AN OVERVIEW
  5. 5. • Integrate DoubleClick's database with Abacus’ (formation of Abacus Online) • Merge online clickstream data about an user with the offline purchase data • Provide users an option of “opt-out” • Customize advertisements w.r.t individual consumers DoubleClick-Abacus MERGER
  6. 6. Division Product Technology Media •eMail List •DoubleClick Sweepstakes •Automated mailing lists •Automated online sweepstakes TechSolutions DART (Dynamic, Advertising, Reporting, Targeting) •Built on ASP/SaaS ad serving technology •Run using cookies Data Abacus Online •Specifically Requested Information + ClickStream Data DoubleClick PRODUCTS
  7. 7. DoubleClick generated revenue via: • Advertising software • Sale of license • Installation and maintenance • Targeted advertisements • Putting up banner advertisements and “click-thrus” • Using DART to monitor consumer behavior BUSINESS MODEL
  8. 8. COMPARISION OF REVENUE 1998 1999 2000 2001 Technology 24965 74695 88428 106716 Media 74180 125499 129179 79893 Data 46979 65961 30518 37553 0 20000 40000 60000 80000 100000 120000 140000 Revenue(in1000$) Source: www.getfilings.com/o0000950117-00-000359.html, www.click2advertising.com/news41.htm
  9. 9. ANALYSIS OF OPERATING EXPENSES 1998 1999 2000 2001 Sales & marketing 52,525 103,578 95661 92153 General & administrative 19,424 36,306 42899 36156 Product Development 12,194 28,364 20851 28436 0 20,000 40,000 60,000 80,000 100,000 120,000 Expenses(in1000$) Source: www.getfilings.com/o0000950117-00-000359.html, www.click2advertising.com/news41.htm
  10. 10. • Forrester estimated online advertising would to increase from $3.3 billion (as of 1999) to $33 billion (as of 2004) • Revenues for 2000 Q1 was 179% higher than last quarter • TechSolutions grew by almost 19% from last year • Operating expenses under all heads was decreasing for 1999-2000 VIABILITY OF THE MODEL
  11. 11. • Changing privacy policies without intimation • Violating policies without detection • Providing consumers no option of “opt-out” • Tracking consumers without any connection to a company PRIVACY CONCERNS
  12. 12. • Tie up with websites which are TRUSTe, and SecureAssure enabled. • Provide P3P enabled software to detect violations • Inform consumers about “opt-out” policies and click stream data collection • Identify and track only actual users of products of a company ADDRESSING PRIVACY ISSUES
  13. 13. THANK YOU

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