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California woman sues DoubleClick over privacy
SAN RAFAEL, Calif., Jan 28 (Reuters) - A Californian woman filed suit Thursday against DoubleClick Inc. <DCLK.O> accusing the Internet
advertising company of unlawfully obtaining and selling consumers` private personal information, lawyers for the woman said.
DoubleClick could not immediately be reached for comment.
The lawsuit was filed in California Superior Court, Marin County, on behalf of Hariett Judnick and seeks to represent the state`s general public, Ira
Rothken, attorney with Rothken Law Firm, said in a statement.
The lawsuit, Judnick v. DoubleClick Inc., accuses New York -based DoubleClick of using computer technology to identify Internet users, track and
record their Internet use and the Internet Web sites they visit, and obtain confidential and personal information about them without their consent.
The information obtained, the suit alleges, includes such items as names, addresses, ages, shopping patterns and histories and financial information, the
lawyers said in a statement.
According to the lawsuit, DoubleClick has represented to the general public that it was not collecting personal and identifying information and that it
gives privacy interests of Internet users paramount importance.
Last year, DoubleClick acquired Abacus Direct Corp. a direct-marketing services company, which maintains a database about the purchasing
patterns of most American households.
The lawsuit contends DoubleClick then combined the power of its tracking technology with the information it acquired to create a means of collecting
and cross-referencing private personal information without the knowing consent of Internet users.
The suit is asking the court to bar DoubleClick from using technology to collect personal information without the prior written consent of the Internet
user.
SAN RAFAEL, Calif., Jan 28 (Reuters) - A Californian woman filed suit Thursday against DoubleClick Inc. <DCLK.O> accusing the Internet
advertising company of unlawfully obtaining and selling consumers` private personal information, lawyers for the woman said.
DoubleClick could not immediately be reached for comment.
The lawsuit was filed in California Superior Court, Marin County, on behalf of Hariett Judnick and seeks to represent the state`s general public, Ira
Rothken, attorney with Rothken Law Firm, said in a statement.
The lawsuit, Judnick v. DoubleClick Inc., accuses New York -based DoubleClick of using computer technology to identify Internet users, track and
record their Internet use and the Internet Web sites they visit, and obtain confidential and personal information about them without their consent.
The information obtained, the suit alleges, includes such items as names, addresses, ages, shopping patterns and histories and financial information, the
lawyers said in a statement.
According to the lawsuit, DoubleClick has represented to the general public that it was not collecting personal and identifying information and that it
gives privacy interests of Internet users paramount importance.
Last year, DoubleClick acquired Abacus Direct Corp. a direct-marketing services company, which maintains a database about the purchasing
patterns of most American households.
The lawsuit contends DoubleClick then combined the power of its tracking technology with the information it acquired to create a means of collecting
and cross-referencing private personal information without the knowing consent of Internet users.
The suit is asking the court to bar DoubleClick from using technology to collect personal information without the prior written consent of the Internet
user.
DoubleClick defends data gathering as suit pends
By Nicole Volpe
NEW YORK, Jan 28 (Reuters) - Online advertising firm DoubleClick Inc. <DCLK.O> on Friday defended its recently stepped-up efforts to collect
personal details about Web surfers, after a California woman filed a lawsuit alleging the company unlawfully obtains such information.
"DoubleClick is absolutely committed to protecting the privacy of all Internet users," a company statement said.
The New York-based firm is able to track the online activities of users of its clients` Web sites, and can use that information to send more
personalized advertising to individuals. This ability has made the firm a favorite of investors who view the company as the cutting edge of targeted
advertising made possible by the Internet.
But as privacy advocates become increasingly alarmed at DoubleClick`s tactics, the edge cuts both ways.
The lawsuit, filed in California Superior Court, Marin County on behalf of Harriett Judnick seeks to curb certain DoubleClick data retrieval policies. It
doesn`t seek damages.
"We need to set some precedent in this area," Ira Rothken, the attorney representing Judnick, said in a telephone interview. "We`ve got to put
DoubleClick`s policies under a microscope." DoubleClick can collect information on Internet users who visit thousands of sites that are part of the
network of advertising sites. By using Web-based technology, DoubleClick learns things such as what sites you`ve visited, what language you speak
and what kind of Web browser you use.
That information was anonymous until recent months, when DoubleClick began to set up partnerships with certain Web sites that ask users to
volunteer more personal details.
The information obtained, the suit alleges, includes such items as names, addresses, ages, shopping patterns and financial information.
In November, DoubleClick bought Abacus Direct <ABDR.O>, a direct marketing research firm, giving it access to a large database of offline
customer information.
DoubleClick has said it seeks to use its information database to send targeted advertising to users -- a runner would see a Nike ad, perhaps.
The company says consumers who want to opt out can.
"We demand that all of our ... partners offer clear notice and choice at the point consumers volunteer information," said Josh Isay, the former chief of
staff for New York Senator George Schumer who DoubleClick hired last month as its lobbyist.
By Nicole Volpe
NEW YORK, Jan 28 (Reuters) - Online advertising firm DoubleClick Inc. <DCLK.O> on Friday defended its recently stepped-up efforts to collect
personal details about Web surfers, after a California woman filed a lawsuit alleging the company unlawfully obtains such information.
"DoubleClick is absolutely committed to protecting the privacy of all Internet users," a company statement said.
The New York-based firm is able to track the online activities of users of its clients` Web sites, and can use that information to send more
personalized advertising to individuals. This ability has made the firm a favorite of investors who view the company as the cutting edge of targeted
advertising made possible by the Internet.
But as privacy advocates become increasingly alarmed at DoubleClick`s tactics, the edge cuts both ways.
The lawsuit, filed in California Superior Court, Marin County on behalf of Harriett Judnick seeks to curb certain DoubleClick data retrieval policies. It
doesn`t seek damages.
"We need to set some precedent in this area," Ira Rothken, the attorney representing Judnick, said in a telephone interview. "We`ve got to put
DoubleClick`s policies under a microscope." DoubleClick can collect information on Internet users who visit thousands of sites that are part of the
network of advertising sites. By using Web-based technology, DoubleClick learns things such as what sites you`ve visited, what language you speak
and what kind of Web browser you use.
That information was anonymous until recent months, when DoubleClick began to set up partnerships with certain Web sites that ask users to
volunteer more personal details.
The information obtained, the suit alleges, includes such items as names, addresses, ages, shopping patterns and financial information.
In November, DoubleClick bought Abacus Direct <ABDR.O>, a direct marketing research firm, giving it access to a large database of offline
customer information.
DoubleClick has said it seeks to use its information database to send targeted advertising to users -- a runner would see a Nike ad, perhaps.
The company says consumers who want to opt out can.
"We demand that all of our ... partners offer clear notice and choice at the point consumers volunteer information," said Josh Isay, the former chief of
staff for New York Senator George Schumer who DoubleClick hired last month as its lobbyist.
!
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By: mulan
Reply To: None
Sunday, 30 Jan 2000 at 4:01 PM EST
Post # of 63928
Q&A: DoubleClick`s Stephen Collins
January 28, 2000 9:42pm
http://205.185.55.119/industry_list.asp?mode=news&doc_id=ZE502901
Q&A: DoubleClick`s Stephen Collins
By Sergio G. Non ZDII
Recent times have been eventful for online advertising specialist DoubleClick (Nasdaq: DCLK). Last week the
company reported fourth quarter results ahead of analyst estimates. The day after that the company perceived as
DoubleClick`s rival, CMGi (Nasdaq: CMGI), took another step in integrating its own advertising businesses when it
sold AdSmart and FlyCast to Engage Technologies (Nasdaq: ENGA). And this week DoubleClick came under fire for
its use of consumer information.
DoubleClick`s database was one of many topics covered in a recent chat with its CFO, Stephen Collins. ZDII spoke
with Collins recently, a few days after the DoubleClick`s quarterly conference call with analysts:
ZDII: How much of a competitive threat do you see from CMGi or from the latest Engage deal?
Collins: Generally, we love our competitive position, and the reasons are as follows:
Number one is, we`ve been doing this for a number of years and we`ve clearly established ourselves as the leader in
each of the segments that CMGi has gone out and acquired various companies. We`re a unified unit, with a single
technology platform, and a great sales force, a global reach, very entrepreneurial. So that`s good, obviously.
The second (reason) is, all these companies, whether it`s Flycast or Adsmart, we`ve been competing with them
before, so it`s not like you have a new competitor. Admittedly, you have some of these players who are now
combining, but we have established a significant lead over all of them separately.
So the conclusion is, there`s no question that CMGi likes our business model and is attempting to rebuild it through
acquisition and compete with us. But we`ve been winning against these companies separately, and even as they`ve
been part of CMGi, we continue to take share from them, we believe. So we like our competitive positioning very
much.
ZDII: Might as well segue into that, now that you`ve mentioned it. During the conference call, you mentioned your ad
network is gaining market share. How much market share do you see yourselves having in each of your segments
at this point?
Collins: Again, I can`t really go out and put specific numbers on that.
What I can say is, first of all, in the media segment: that is by far the largest market, and I think there will always be
quite a few players there. But as we get bigger and as we are able to do things better than everybody else -- I think
advertisers get smarter because in the early days, you know, people would go out and do huge portal deals for tens
of millions of dollars, and I think that we have seen over the last year is that networks have taken several share
points away from portals. And we believe that trend will continue. So I think there`s a lot of room for a lot of players
there.
As far as the ad serving, or technology, segment, we`ve already got significant shares there already. There are very
few competitors, relatively speaking, in that space, and not many people have entered it. Our strategic goal is to be
sort of the gold standard for Internet advertising, ad serving infrastructure. I think we`re going to continue to progress
on that road.
What our data assets through the Abacus Group give us, is that they just give us that many more unique assets to
ensure that we bring the best products and services to market, which should help us to maintain our leadership
position and increase it.
Have an opinion on this?
Add your comments to the bottom of this page.
ZDII: How far along are you in turning Abacus into an online company? When you bought Abacus, it was basically an
offline organization.
Collins: Well we just closed our deal on Nov. 23, so we`re about seven weeks in. And first point is, one of the
reasons that Abacus was encouraged to look online is all their customers, all these direct marketers, see the
opportunity to go online. So they were pushed as much by their customers as any other factor in looking to exploit
the Internet opportunity. So that bodes well for our ability, if you will, to make them an online company. And the truth
is, in the future you won`t say on or offline, these direct marketers are just going to try to get to consumers where
they buy products. So you don`t have those kind of barriers.
The function of getting things going -- what we have to do, I should say, is, we have to develop the products, which
means taking the data, leveraging it so we can get the right message to the right consumer at the right time. We
have to be able to communicate that to the market, and sell those products, and show that they improve the results
of the advertising, the fact that they believe increase return on investment for advertisers. We think that we will be
able to start getting traction and get that done in the latter part of this year.
ZDII: When do you hope to have it completed, so you have most of Abacus` clientele doing some sort of online
marketing?
Collins: Again, I think, we`ll start moving forward pretty quickly in that regard as we get in the latter part of this year. At
the same time, there are already some cross-selling opportunities today. Some of our online clients, e-commerce
players, are actually, interestingly enough, interested in direct mail. So we`ve been able to close seven-figure-plus
deals going from our online DoubleClick clients over to Abacus` products. So in the very very near term, I think that
low hanging fruit, those kinds of things, that kind of cross-selling with our client base is what you`ll see in the near
term, meaning now, next quarter.
The reason you can`t go any faster than the latter half of this year with Abacus online is, you`ve got to sign up the
sites and you`ve got to build up the data you need,so and so forth, there`s disclosure around that, it`s on an opt-in
basis, it just takes time to build up the database and do matching. It`s not technically difficult to do that, but you just
can`t snap your fingers and suddenly have enough critical mass or enough inventory to out with a meaningful
offering.
ZDII: Abacus generated, I think, $17 million in the latest quarter?
Collins: $17 million in the quarter, that`s correct.
ZDII: Do you have any idea, can you give us any detail, any idea of what sort of multiple going online can provide to
that, going forward?
Collins: I really can`t give you a good answer to that question, simply because that`s not exactly how we think about
our business or why we do things.
Abacus is a part of Doubleclick now, and I don`t believe that people break down each of the segments of DoubleClick
and assign them different revenue multiples. I would say that people look at DoubleClick, they look at the revenue
growth we`ve been able to deliver, they look at our march towards profitability, they look at, as much as anything,
they look at the fact that there`s intense demand for the products and services that we provide, because we`re
providing a lot of value.
And I think our valuation -- you know, who can explain the stock market all the time? -- but people see we`re a leader,
they see that we`re growing, they see that we`re entrepreneurial and aggressive, and they see that our addressable
market is very significant. In four or five years, that market could be $60 billion dollars, if you look at the various
people who go out there and predict these things. And if we have significant shares, obviously they see we could be
a large, profitable company, and all those kinds of things are discounted into the stock valuation.
But I can`t get into revenue multiples, or why people pick one thing over another, or how they might look at one
segment over another. I don`t perceive that`s how people look at us.
ZDII: Let me ask you about the other acquisition that people think of recently with DoubleClick. I`m wondering how the
NetGravity integration is doing?
Collins: Actually, our integrations for both companies are complete from sort of a mechanical, functional point of
view. We spent a lot of time and effort in this quarter making sure those things happened, and that the people were
retained and so on and so forth.
But the NetGravity merger was a different animal from Abacus. Abacus and DoubleClick was such a perfectly
complementary, there was no overlap, we needed data assets, they needed an online strategy, it was a beautiful fit.
In the case of NetGravity, while we had a different way of solving the customer`s problem, one was online service
and the other was software, we were intense competitors, and it`s just different to merge with a company that way.
But I think we discovered that we were a lot alike, we liked each other, I think the merger has gone extremely well,
and what we have done there is, we have combined the sales forces. So we don`t have a software sales force and a
service sales forc. We have one company, we go out and we provide a suite of solutions, and our customers tend to
choose either software or service based on their internal needs, not so much a price comparison. Some people
want to control their environment more; like, they may be a larger company that just has its own IT operation and
likes the idea of having things in-house, and they`re going to do it that way, no matter what. Other companies say,
"This isn`t my area of expertise, I don`t want to deal with it, I`m going to outsource it."
We just want to present both options in an objective way, and the end result of that has been, in the fourth quarter
we signed up more technology companies than we ever have on a combined basis. We saw our cycle times for
closing sales shrink, because I think we were able to provide a deeper offering, or broader offering, and it wasn`t
clouded with all the sort of competitive jargon, if you know what I mean, that occurs when you have really tough
competitors going at each other, trying to sell one philosophy over another. So we`re very pleased with how that`s
gone.
ZDII: During the quarterly conference call, you mentioned that you expect going forward to see more seasonality in
first quarters as Internet advertising starts to behave more like traditional advertising.
Collins: That`s right.
ZDII: I was wondering if you could expound on that. In what ways were they different in the first place, and what sort
of change are you seeing?
Collins: Well, first of all, we`ve always had seasonality in the first quarter, so we`ve always seen that the media
spending in the first quarter is less intense than it is in the fourth quarter, and that`s for obvious reasons, right?
Holiday sales.
As we get larger and as more traditional advertisers spend more money on the Web, which they are and they
certainly are with us -- in the early days of the Web, you didn`t have General Motors advertising, you had strictly other
dot-coms and small companies that were dabbling, and advertising on the Internet wasn`t even part of people`s
budgets. It was just play money.
But now as people make Internet advertising a much more serious and planned component of their annual plans,
there are Internet ad budgets being created, and now you get sort of lumped into the cycle of advertising planning of
traditional companies. And that in and of itself actually starts creating the seasonal effect that you see in other
industries.
Also, it`s just, you come right off the Christmas season, and you get that sort of uncomfortable pause, where people
are getting things back in gear in January before they really go out and start getting things going again, which usually
happens around March.
So ultimately what this means to us is that we still have overall demand increasing for Internet advertising, so
year-on-year, you know, the market is going to continue to grow significantly. I think what`ll you see is people
evaluate their experience from the fourth quarter, to figure out what worked and what didn`t worked, and they`ll come
out and they`ll spend a whole lot more over the course of 2000 than they did before. But you`ve got to give them a
minute to figure out what they thought was really effective, because they did the most advertising they`ve ever done
before in the fourth quarter and they have to digest it.
It just reduces visibility, you just can`t know as well what`s going to happen in the first quarter, versus the fourth
quarter, because of this cycle. So, you know, I think companies like DoubleClick and everyone, it`s an exciting
business, we`re all growing very quickly, but it is also important to be cautious and prudent -- cautiously optimistic, I
would say. We`re excited about our prospects and we want to get people used to understand the business cycles
that affect our company as we get more mature. It`s important to communicate that.
ZDII: Speaking of business cycles and traditional ads, CMGi loves pointing out that ad dollars on the Internet haven`t
matched the audience draw...
Collins: Yes, and that`s a wonderful comparison too.
ZDII: I`m wondering, when do you think those two numbers will coincide?
Collins: I`m probably not the best person to ask for that, it would probably be someone on our media side, but I think
it might be awhile, it might be a few more years. I think the growth in online advertising is really just cranking up. I
think there are other developments that are going to accelerate that.
One of them is going to be the increase in bandwidth. Everybody talks about this, but, you know, traditional
advertisers, branded advertisers are going to be, I think, intrigued when more and more rich media comes about. I
think the explosino of personal digital assitants and interactive TV is going to draw more and more advertisers online
into an advertising focus. So the eyeballs are clearly moving over, but the companies are still trying to figure out what
the right thing to do is.
So I`d say it`s going to be a few more years before that fully evens out. But that certainly is something that makes it
all very exciting when we look at that, because we know ad dollars follow the eyeballs. Or ears or fingers or whatever
it is.
ZDII: One thing you mentioned during your analyst call, you talked about international revenue being 19 percent of
your revenue in the latest quarter, and one of you called it an "inflection point". Can you go into that a bit? Why is it a
turning point now?
Collins: Really, I think we said the last two quarters have been an inflection point.
We moved very early to establish businesses internationally, and one of the reasons is, because of the information
we get as we deliver ads, we know where the reach is, we know if it`s U.S. or if it`s Germany or what have you. And
we could see very early that a lot of Internet usage was coming from overseas. So we said overseas is going to be
big. Kind of a no-brainer, but we moved two years ago, we said we`re going to be aggressive.
So when we started initially setting the businesses up there, the only demand that there was, is, advertisers in the
U.K. or Germany would buy inventory on U.S. sites that had German or U.K. users. You follow me on that?
So there weren`t any local sites. There really wasn`t any inventory to sell to local advertisers, sites in the U.K., so on
and so forth. Well, we went ahead and set up there and said we`re going to set up a local network, we`re going to
repeat the DoubleClick model internationally, we`re going to sign up local sites and augment the U.S. inventory of
foreign users with foreign users on local sites.
And in the last two quarters what we`ve seen is we`ve seen the foreign markets, principally Europe and certainly
Asia, that their Internet industry is 18 to 24 months behind the U.S. but now, the local sites are starting to get
significant traffic, and advertisers are able to access this inventory, there are more dot-coms over there, there are
more traditional advertisers recognizing that this medium is powerful, and they`re buying on local sites. And now all
of a sudden there`s a whole new source of inventory in demand that really is just now starting to show up. And it`s
driving growth, and that`s why we think international growth is going to grow faster than the rest of our growth,
because of the maturing of the local content and the local markets.
ZDII: Do you have a target percentage of your revenue that you expect to see from overseas?
Collins: We`ve often said that some years into the future, it might be three years, it might be seven years, we can
certainly see between 40 and 50 percent of our revenues coming from international. The Internet is going to change
the way advertising is purchased, because right now, if a General Motors wants to buy all around the world, they
really do buy in all the different markets separately.
But if you go to any DoubleClick office in any country, you can access all the ad inventory in the world, through that
office, and they can facilitate that buy. So that`s a powerful efficiency that we think will change the way advertising is
purchased globally. And I think also willhelp demand. But we`re very bullish on international and on the percentage of
revenue that it will ultimately be of our company`s revenue. Sorry, I`m repeating the words twice.
ZDII: That`s ok. Talking about being able to access inventory anywere, I know, in the past, other ad companies and
DoubleClick also have mentioned they have more inventory at the moment than ads. Do you expect that ever to
change?
Collins: Understanding the dynamics of inventory for the Internet can be complicated.
In a way, it`s infinite, because you can come up with so many different combinations. Inventory isn`t just a place on
Dilbert. Inventory can be sliced and diced by demographics, or where people are coming from, or what time they`re
on. So inventory management is a complex area.
But it is absolutely true, I would say, that supply, in terms of impressions and what have you, has outstripped
demand right now, because more and more people are coming to the Web, and advertisers and other things are
behind that, they`re catching up. Also, you can add more ads to a page and so on and so forth.
But it`s not necessarily true that people don`t buy it, it`s just that different types of inventory have different price points.
Chat, for example, is much less attractive to, certainly, a branding advertiser like Procter & Gamble, than it would be
to a direct marketer. And it may not even be very attractive to a direct marketer, because click-through rates aren`t
very high on chat sites. And that`s where a lot of inventory comes from. So you can sell certain things, but you can`t
sell $100 cpm, premium-branded stuff.
So what you do is you segment your inventory for what it`s good for, and you try to get the maximum yield that you
can get from that segment. And, you know, that`s what our software helps us do, and that`s what we do a good job
of. So we sell it all in that respect. It`s just that all of it`s not saleable at the same price, like anything else.
Does that make sense? That`s a hard one to describe well, and I don`t always do a good job.
ZDII: I think I see where you`re coming from. You did raise one point that I want to pursue, you talked about different
types of ads having different rates, and I guess that the higher value ones are the ones that are more
performance-oriented, based on click-through rates and things like that ...
Collins: Actually, that`s not necessarily true.
ZDII: Really?
Collins: No, because if you`re -- I`m using these as hypotheticals, these are not actual campaigns -- if you`re General
Motors and you want to advertise about a luxury car, you might choose to put that ad on Autobytel, but you also
might choose to put that as a sponsorship or a premium position on Dilbert, or Individual Investor online, if you think
there are a lot of people are there who would look at Lexuses. So there is definitely --- advertisers that look to
increase the value of their brand through advertising do find benefit on the Internet. And t
Reply To: None
Sunday, 30 Jan 2000 at 4:01 PM EST
Post # of 63928
Q&A: DoubleClick`s Stephen Collins
January 28, 2000 9:42pm
http://205.185.55.119/industry_list.asp?mode=news&doc_id=ZE502901
Q&A: DoubleClick`s Stephen Collins
By Sergio G. Non ZDII
Recent times have been eventful for online advertising specialist DoubleClick (Nasdaq: DCLK). Last week the
company reported fourth quarter results ahead of analyst estimates. The day after that the company perceived as
DoubleClick`s rival, CMGi (Nasdaq: CMGI), took another step in integrating its own advertising businesses when it
sold AdSmart and FlyCast to Engage Technologies (Nasdaq: ENGA). And this week DoubleClick came under fire for
its use of consumer information.
DoubleClick`s database was one of many topics covered in a recent chat with its CFO, Stephen Collins. ZDII spoke
with Collins recently, a few days after the DoubleClick`s quarterly conference call with analysts:
ZDII: How much of a competitive threat do you see from CMGi or from the latest Engage deal?
Collins: Generally, we love our competitive position, and the reasons are as follows:
Number one is, we`ve been doing this for a number of years and we`ve clearly established ourselves as the leader in
each of the segments that CMGi has gone out and acquired various companies. We`re a unified unit, with a single
technology platform, and a great sales force, a global reach, very entrepreneurial. So that`s good, obviously.
The second (reason) is, all these companies, whether it`s Flycast or Adsmart, we`ve been competing with them
before, so it`s not like you have a new competitor. Admittedly, you have some of these players who are now
combining, but we have established a significant lead over all of them separately.
So the conclusion is, there`s no question that CMGi likes our business model and is attempting to rebuild it through
acquisition and compete with us. But we`ve been winning against these companies separately, and even as they`ve
been part of CMGi, we continue to take share from them, we believe. So we like our competitive positioning very
much.
ZDII: Might as well segue into that, now that you`ve mentioned it. During the conference call, you mentioned your ad
network is gaining market share. How much market share do you see yourselves having in each of your segments
at this point?
Collins: Again, I can`t really go out and put specific numbers on that.
What I can say is, first of all, in the media segment: that is by far the largest market, and I think there will always be
quite a few players there. But as we get bigger and as we are able to do things better than everybody else -- I think
advertisers get smarter because in the early days, you know, people would go out and do huge portal deals for tens
of millions of dollars, and I think that we have seen over the last year is that networks have taken several share
points away from portals. And we believe that trend will continue. So I think there`s a lot of room for a lot of players
there.
As far as the ad serving, or technology, segment, we`ve already got significant shares there already. There are very
few competitors, relatively speaking, in that space, and not many people have entered it. Our strategic goal is to be
sort of the gold standard for Internet advertising, ad serving infrastructure. I think we`re going to continue to progress
on that road.
What our data assets through the Abacus Group give us, is that they just give us that many more unique assets to
ensure that we bring the best products and services to market, which should help us to maintain our leadership
position and increase it.
Have an opinion on this?
Add your comments to the bottom of this page.
ZDII: How far along are you in turning Abacus into an online company? When you bought Abacus, it was basically an
offline organization.
Collins: Well we just closed our deal on Nov. 23, so we`re about seven weeks in. And first point is, one of the
reasons that Abacus was encouraged to look online is all their customers, all these direct marketers, see the
opportunity to go online. So they were pushed as much by their customers as any other factor in looking to exploit
the Internet opportunity. So that bodes well for our ability, if you will, to make them an online company. And the truth
is, in the future you won`t say on or offline, these direct marketers are just going to try to get to consumers where
they buy products. So you don`t have those kind of barriers.
The function of getting things going -- what we have to do, I should say, is, we have to develop the products, which
means taking the data, leveraging it so we can get the right message to the right consumer at the right time. We
have to be able to communicate that to the market, and sell those products, and show that they improve the results
of the advertising, the fact that they believe increase return on investment for advertisers. We think that we will be
able to start getting traction and get that done in the latter part of this year.
ZDII: When do you hope to have it completed, so you have most of Abacus` clientele doing some sort of online
marketing?
Collins: Again, I think, we`ll start moving forward pretty quickly in that regard as we get in the latter part of this year. At
the same time, there are already some cross-selling opportunities today. Some of our online clients, e-commerce
players, are actually, interestingly enough, interested in direct mail. So we`ve been able to close seven-figure-plus
deals going from our online DoubleClick clients over to Abacus` products. So in the very very near term, I think that
low hanging fruit, those kinds of things, that kind of cross-selling with our client base is what you`ll see in the near
term, meaning now, next quarter.
The reason you can`t go any faster than the latter half of this year with Abacus online is, you`ve got to sign up the
sites and you`ve got to build up the data you need,so and so forth, there`s disclosure around that, it`s on an opt-in
basis, it just takes time to build up the database and do matching. It`s not technically difficult to do that, but you just
can`t snap your fingers and suddenly have enough critical mass or enough inventory to out with a meaningful
offering.
ZDII: Abacus generated, I think, $17 million in the latest quarter?
Collins: $17 million in the quarter, that`s correct.
ZDII: Do you have any idea, can you give us any detail, any idea of what sort of multiple going online can provide to
that, going forward?
Collins: I really can`t give you a good answer to that question, simply because that`s not exactly how we think about
our business or why we do things.
Abacus is a part of Doubleclick now, and I don`t believe that people break down each of the segments of DoubleClick
and assign them different revenue multiples. I would say that people look at DoubleClick, they look at the revenue
growth we`ve been able to deliver, they look at our march towards profitability, they look at, as much as anything,
they look at the fact that there`s intense demand for the products and services that we provide, because we`re
providing a lot of value.
And I think our valuation -- you know, who can explain the stock market all the time? -- but people see we`re a leader,
they see that we`re growing, they see that we`re entrepreneurial and aggressive, and they see that our addressable
market is very significant. In four or five years, that market could be $60 billion dollars, if you look at the various
people who go out there and predict these things. And if we have significant shares, obviously they see we could be
a large, profitable company, and all those kinds of things are discounted into the stock valuation.
But I can`t get into revenue multiples, or why people pick one thing over another, or how they might look at one
segment over another. I don`t perceive that`s how people look at us.
ZDII: Let me ask you about the other acquisition that people think of recently with DoubleClick. I`m wondering how the
NetGravity integration is doing?
Collins: Actually, our integrations for both companies are complete from sort of a mechanical, functional point of
view. We spent a lot of time and effort in this quarter making sure those things happened, and that the people were
retained and so on and so forth.
But the NetGravity merger was a different animal from Abacus. Abacus and DoubleClick was such a perfectly
complementary, there was no overlap, we needed data assets, they needed an online strategy, it was a beautiful fit.
In the case of NetGravity, while we had a different way of solving the customer`s problem, one was online service
and the other was software, we were intense competitors, and it`s just different to merge with a company that way.
But I think we discovered that we were a lot alike, we liked each other, I think the merger has gone extremely well,
and what we have done there is, we have combined the sales forces. So we don`t have a software sales force and a
service sales forc. We have one company, we go out and we provide a suite of solutions, and our customers tend to
choose either software or service based on their internal needs, not so much a price comparison. Some people
want to control their environment more; like, they may be a larger company that just has its own IT operation and
likes the idea of having things in-house, and they`re going to do it that way, no matter what. Other companies say,
"This isn`t my area of expertise, I don`t want to deal with it, I`m going to outsource it."
We just want to present both options in an objective way, and the end result of that has been, in the fourth quarter
we signed up more technology companies than we ever have on a combined basis. We saw our cycle times for
closing sales shrink, because I think we were able to provide a deeper offering, or broader offering, and it wasn`t
clouded with all the sort of competitive jargon, if you know what I mean, that occurs when you have really tough
competitors going at each other, trying to sell one philosophy over another. So we`re very pleased with how that`s
gone.
ZDII: During the quarterly conference call, you mentioned that you expect going forward to see more seasonality in
first quarters as Internet advertising starts to behave more like traditional advertising.
Collins: That`s right.
ZDII: I was wondering if you could expound on that. In what ways were they different in the first place, and what sort
of change are you seeing?
Collins: Well, first of all, we`ve always had seasonality in the first quarter, so we`ve always seen that the media
spending in the first quarter is less intense than it is in the fourth quarter, and that`s for obvious reasons, right?
Holiday sales.
As we get larger and as more traditional advertisers spend more money on the Web, which they are and they
certainly are with us -- in the early days of the Web, you didn`t have General Motors advertising, you had strictly other
dot-coms and small companies that were dabbling, and advertising on the Internet wasn`t even part of people`s
budgets. It was just play money.
But now as people make Internet advertising a much more serious and planned component of their annual plans,
there are Internet ad budgets being created, and now you get sort of lumped into the cycle of advertising planning of
traditional companies. And that in and of itself actually starts creating the seasonal effect that you see in other
industries.
Also, it`s just, you come right off the Christmas season, and you get that sort of uncomfortable pause, where people
are getting things back in gear in January before they really go out and start getting things going again, which usually
happens around March.
So ultimately what this means to us is that we still have overall demand increasing for Internet advertising, so
year-on-year, you know, the market is going to continue to grow significantly. I think what`ll you see is people
evaluate their experience from the fourth quarter, to figure out what worked and what didn`t worked, and they`ll come
out and they`ll spend a whole lot more over the course of 2000 than they did before. But you`ve got to give them a
minute to figure out what they thought was really effective, because they did the most advertising they`ve ever done
before in the fourth quarter and they have to digest it.
It just reduces visibility, you just can`t know as well what`s going to happen in the first quarter, versus the fourth
quarter, because of this cycle. So, you know, I think companies like DoubleClick and everyone, it`s an exciting
business, we`re all growing very quickly, but it is also important to be cautious and prudent -- cautiously optimistic, I
would say. We`re excited about our prospects and we want to get people used to understand the business cycles
that affect our company as we get more mature. It`s important to communicate that.
ZDII: Speaking of business cycles and traditional ads, CMGi loves pointing out that ad dollars on the Internet haven`t
matched the audience draw...
Collins: Yes, and that`s a wonderful comparison too.
ZDII: I`m wondering, when do you think those two numbers will coincide?
Collins: I`m probably not the best person to ask for that, it would probably be someone on our media side, but I think
it might be awhile, it might be a few more years. I think the growth in online advertising is really just cranking up. I
think there are other developments that are going to accelerate that.
One of them is going to be the increase in bandwidth. Everybody talks about this, but, you know, traditional
advertisers, branded advertisers are going to be, I think, intrigued when more and more rich media comes about. I
think the explosino of personal digital assitants and interactive TV is going to draw more and more advertisers online
into an advertising focus. So the eyeballs are clearly moving over, but the companies are still trying to figure out what
the right thing to do is.
So I`d say it`s going to be a few more years before that fully evens out. But that certainly is something that makes it
all very exciting when we look at that, because we know ad dollars follow the eyeballs. Or ears or fingers or whatever
it is.
ZDII: One thing you mentioned during your analyst call, you talked about international revenue being 19 percent of
your revenue in the latest quarter, and one of you called it an "inflection point". Can you go into that a bit? Why is it a
turning point now?
Collins: Really, I think we said the last two quarters have been an inflection point.
We moved very early to establish businesses internationally, and one of the reasons is, because of the information
we get as we deliver ads, we know where the reach is, we know if it`s U.S. or if it`s Germany or what have you. And
we could see very early that a lot of Internet usage was coming from overseas. So we said overseas is going to be
big. Kind of a no-brainer, but we moved two years ago, we said we`re going to be aggressive.
So when we started initially setting the businesses up there, the only demand that there was, is, advertisers in the
U.K. or Germany would buy inventory on U.S. sites that had German or U.K. users. You follow me on that?
So there weren`t any local sites. There really wasn`t any inventory to sell to local advertisers, sites in the U.K., so on
and so forth. Well, we went ahead and set up there and said we`re going to set up a local network, we`re going to
repeat the DoubleClick model internationally, we`re going to sign up local sites and augment the U.S. inventory of
foreign users with foreign users on local sites.
And in the last two quarters what we`ve seen is we`ve seen the foreign markets, principally Europe and certainly
Asia, that their Internet industry is 18 to 24 months behind the U.S. but now, the local sites are starting to get
significant traffic, and advertisers are able to access this inventory, there are more dot-coms over there, there are
more traditional advertisers recognizing that this medium is powerful, and they`re buying on local sites. And now all
of a sudden there`s a whole new source of inventory in demand that really is just now starting to show up. And it`s
driving growth, and that`s why we think international growth is going to grow faster than the rest of our growth,
because of the maturing of the local content and the local markets.
ZDII: Do you have a target percentage of your revenue that you expect to see from overseas?
Collins: We`ve often said that some years into the future, it might be three years, it might be seven years, we can
certainly see between 40 and 50 percent of our revenues coming from international. The Internet is going to change
the way advertising is purchased, because right now, if a General Motors wants to buy all around the world, they
really do buy in all the different markets separately.
But if you go to any DoubleClick office in any country, you can access all the ad inventory in the world, through that
office, and they can facilitate that buy. So that`s a powerful efficiency that we think will change the way advertising is
purchased globally. And I think also willhelp demand. But we`re very bullish on international and on the percentage of
revenue that it will ultimately be of our company`s revenue. Sorry, I`m repeating the words twice.
ZDII: That`s ok. Talking about being able to access inventory anywere, I know, in the past, other ad companies and
DoubleClick also have mentioned they have more inventory at the moment than ads. Do you expect that ever to
change?
Collins: Understanding the dynamics of inventory for the Internet can be complicated.
In a way, it`s infinite, because you can come up with so many different combinations. Inventory isn`t just a place on
Dilbert. Inventory can be sliced and diced by demographics, or where people are coming from, or what time they`re
on. So inventory management is a complex area.
But it is absolutely true, I would say, that supply, in terms of impressions and what have you, has outstripped
demand right now, because more and more people are coming to the Web, and advertisers and other things are
behind that, they`re catching up. Also, you can add more ads to a page and so on and so forth.
But it`s not necessarily true that people don`t buy it, it`s just that different types of inventory have different price points.
Chat, for example, is much less attractive to, certainly, a branding advertiser like Procter & Gamble, than it would be
to a direct marketer. And it may not even be very attractive to a direct marketer, because click-through rates aren`t
very high on chat sites. And that`s where a lot of inventory comes from. So you can sell certain things, but you can`t
sell $100 cpm, premium-branded stuff.
So what you do is you segment your inventory for what it`s good for, and you try to get the maximum yield that you
can get from that segment. And, you know, that`s what our software helps us do, and that`s what we do a good job
of. So we sell it all in that respect. It`s just that all of it`s not saleable at the same price, like anything else.
Does that make sense? That`s a hard one to describe well, and I don`t always do a good job.
ZDII: I think I see where you`re coming from. You did raise one point that I want to pursue, you talked about different
types of ads having different rates, and I guess that the higher value ones are the ones that are more
performance-oriented, based on click-through rates and things like that ...
Collins: Actually, that`s not necessarily true.
ZDII: Really?
Collins: No, because if you`re -- I`m using these as hypotheticals, these are not actual campaigns -- if you`re General
Motors and you want to advertise about a luxury car, you might choose to put that ad on Autobytel, but you also
might choose to put that as a sponsorship or a premium position on Dilbert, or Individual Investor online, if you think
there are a lot of people are there who would look at Lexuses. So there is definitely --- advertisers that look to
increase the value of their brand through advertising do find benefit on the Internet. And t
By: mulan
Reply To: None
Sunday, 30 Jan 2000 at 4:14 PM EST
Post # of 63928
Q&A Doubleclick Pt2
ZDII: Really?
Collins: No, because if you`re -- I`m using these as hypotheticals, these are not actual campaigns -- if you`re General
Motors and you want to advertise about a luxury car, you might choose to put that ad on Autobytel, but you also
might choose to put that as a sponsorship or a premium position on Dilbert, or Individual Investor online, if you think
there are a lot of people are there who would look at Lexuses. So there is definitely --- advertisers that look to
increase the value of their brand through advertising do find benefit on the Internet. And they`re not necessarily
looking for click-through performance, and having premium positioning on a site, just like any other television show
that`s important to them, they pay a premium for that.
So pricing is not a pure function of clickthrough at all. Now direct marketers are much more focused on that,
because all they care about is ROI.
In some respects, I would say that people have too much of a focus on click through. And in a way I think the
industry did itself a disservice early by being so focused on that, because there are lots of different reasons to put
your message up on the Web. Sometimes it`s for click through and sometimes for branding, and people put varying
values on that.
The difference with the Internet is, it`s the first medium that you actually can measure performance with a high
degree of certainty, even though people are still trying to figure a lot out about that. And I think sometimes that`s a
strange wakeup call for people, when all of a sudden they`ve been trying to brand and they`re getting feedback on
how many people are clicking on it. It`s apples and oranges.
ZDII: The reason I this up is because constantly -- I`ve been seeing articles about this since the Internet became a
commercial medium -- there are always questions raised about the effectiveness of banner ads: do people even
look at them as they`re surfing? Do you think in the future that will continue to be a question?
Collins: You know, I think every advertising medium is questioned for its effectiveness. I think that the thing that`s
important about the Web, it`s like television was in the first two or three years of its existence. Banner ads are out
there, they are effective, and ones that are done well have exceptional response rates. Ones that are placed wrong
and aren`t sent to the right consumer and are deep down in a chat site, I`m sure no one is looking at.
But the Web is going to evolve. We already can deliver any kind of rich media, and we do. So you`re going to see
interstitials. You`re going to see ads going through personal digital assistants. You`re going to see ad campaigns with
your e-mail certainly. You`re going to see ad campaigns get more sophisticated in the sense that it won`t just be a
one-shot banner, but it might be a series of banners that an individual sees over time.
So I think the strategies are evolving, they`re going to get more complicated as people learn how to make the
medium more effective. Bandwidth and technology improvements are going to allow for some amazing new things.
So I think there`ll always be room for the banner in a sense, but already things have evolved so much in the three
years since I`ve been with DoubleClick. It started out, there was one banner on one page all the time. Now people
have text links and buttons and interstitials and all sorts of stuff, and it`s just going to get more complicated. It`s a
long winded answer of saying, "Sure, things are going to evolve. But that`s great, we`re happy."
It just means that people are finding ways to get things from a the Web. You know, a banner`s just a hunk of data to
us, and the only reason people do banners the way they do is because it`s a convenient standard and it makes it
easier to do dynamic targeting, because of the size of the space. That`s why everybody uses the same size.
Technology can cchange, it already has, where size can be flexible.
So those are my answers there. We`re optimistic, we love the change, we think it`s going to be great for us.
ZDII: Coming back to the subject we started with, who are you seeing most often in your contract competitions?
Collins: Which side, on media or just in general?
ZDII: In all your segments.
Collins: I`ll just break it down briefly.
In the media segment, we`re competing with everyone else who sells advertising on the Web. We`re competitng with
the Yahoos, we`re competing with the CMGi guys, 24/7 Media (Nasdaq: TFSM) is another network. All the individual
sites are out there looking for ad dollars, we`re all competing for ad dollars with the same population.
ZDII: Is there anyone who you see more often than others?
Collins: Well, I think you see the people who sell the most. Yahoo! (Nasdaq: YHOO) and America Online (NYSE:
AOL)are the big heavyweights out there, 24/7 has done a good job, we`ve been more successful than they have, but
again, it`s a big market that`s growing quickly.
One thing that`s interesting that we are very proud of: there`s a group called The Myers Group, I don`t know if you`ve
ever heard of them, but they`re like the J.D. Power for the advertising industry, very prestigious; they`d never done
the Web before, they went out and looked at 28 sales organizations, amongst them AOL, Yahoo, and DoubleClick,
out of the 13 categories that they ranked, we came back from our customers` point of view as the best in 11 of the
13, and number two or number three in the other two.. And so I think that our customers and our growth are
evidence of the fact -- we`re out there competing with AOL and Yahoo and the best -- our customers think we`re the
best at what we do. So a little plug there, I think it was worth mentioning.
On the technology side, really the market has consolidated quite a bit, and it`s testament to the fact that this is a
difficult thing to do, to manage data operations around the world and handle this complicated software. There are
very, very few material, if not completely immaterial, entrants into the ad serving arena. So you have the AdForces
that are out there, Engage is out there and Real Media and us, and we`re the clear leader there. And that`s been a
relatively static landscape, with our continuing to take more and more share from those individuals.
On the Abacus front, they pretty much stood alone on their offline side, in terms of, they were considered the best
and they were the market leaders. As far as the sort of online data targeting thing, DoubleClick has already been
doing already that for several years. With our Abacus merger, we`ve now got additional unique assets that will
absolutely allow us to continue to be the best, as far as database targeting. Certainly the CMGi guys are out there
with Engage, but we`re way ahead of them, in terms of customer base and everything else.
ZDII: The only other thing I`m wondering about then, I think probably your one of your most high-profile contracts that
was announced was Lycos (Nasdaq: LCOS) -- actually, I didn`t see a news release on that...
Collins: We haven`t done a news release, and we don`t always do news releases, but we mentioned it on the
(quarterly analyst) call, that was our way of letting everybody know that we`ve signed that.
ZDII: Relative to your other contracts in the media space, how does it stack up?
Collins: Certainly it`s a very significant client that we are unbelievably pleased to have signed for a variety of reasons.
In terms of volume of ads served, they`re larger than AltaVista, so they would absolutely be one of our
highest-volume sites.
I think one that`s really -- if you want to talk about inflection points -- it`s a great sort of win, in the sense that we`ve
always said that managing data operations and assets is a difficult thing, that even big companies aren`t always
going to want to do on their own. And I think seeing Lycos turn to us because they know we can help them be more
profitable and please their customers more, is in many ways, a validation of our strategy, in that all size sites will
look to us for services and solutions, in one form or another. So we`re very excited about having them on, we hope
we`ll do a great job for them.
ZDII: Obviously Lycos likes what you do, but did you get any sense that one reason why they chose to go with
Doubleclick is because of -- I mean, Lycos` relationship with CMGi probably isn`t what it used to be, ever since the
USA Networks thing.
Collins: Well, you know, public companies -- everyone always looks at this like a soap opera, (people think)
everybody`s making decisions because of who knows who, or how they are emotionally attached -- good
businesses make good business decisions, and Lycos felt that working with DoubleClick was the best business
decision, and as a public company, you know, you`re obligated to do just that.
All of us who are out here competing on the Web, it`s an exciting time to be doing this. Everybody wants to win, of
course, everybody`s working hard, and this is great for consumers overall. But I think it`s less of a soap opera than
people might want it to be.
But I can`t really comment on whether internal politcs played a role in their decision. If anything, I would say Lycos
selecting us in the face of whatever could be there shows how much they valued the fundamental, good business
part of coming to work with us.
Reply To: None
Sunday, 30 Jan 2000 at 4:14 PM EST
Post # of 63928
Q&A Doubleclick Pt2
ZDII: Really?
Collins: No, because if you`re -- I`m using these as hypotheticals, these are not actual campaigns -- if you`re General
Motors and you want to advertise about a luxury car, you might choose to put that ad on Autobytel, but you also
might choose to put that as a sponsorship or a premium position on Dilbert, or Individual Investor online, if you think
there are a lot of people are there who would look at Lexuses. So there is definitely --- advertisers that look to
increase the value of their brand through advertising do find benefit on the Internet. And they`re not necessarily
looking for click-through performance, and having premium positioning on a site, just like any other television show
that`s important to them, they pay a premium for that.
So pricing is not a pure function of clickthrough at all. Now direct marketers are much more focused on that,
because all they care about is ROI.
In some respects, I would say that people have too much of a focus on click through. And in a way I think the
industry did itself a disservice early by being so focused on that, because there are lots of different reasons to put
your message up on the Web. Sometimes it`s for click through and sometimes for branding, and people put varying
values on that.
The difference with the Internet is, it`s the first medium that you actually can measure performance with a high
degree of certainty, even though people are still trying to figure a lot out about that. And I think sometimes that`s a
strange wakeup call for people, when all of a sudden they`ve been trying to brand and they`re getting feedback on
how many people are clicking on it. It`s apples and oranges.
ZDII: The reason I this up is because constantly -- I`ve been seeing articles about this since the Internet became a
commercial medium -- there are always questions raised about the effectiveness of banner ads: do people even
look at them as they`re surfing? Do you think in the future that will continue to be a question?
Collins: You know, I think every advertising medium is questioned for its effectiveness. I think that the thing that`s
important about the Web, it`s like television was in the first two or three years of its existence. Banner ads are out
there, they are effective, and ones that are done well have exceptional response rates. Ones that are placed wrong
and aren`t sent to the right consumer and are deep down in a chat site, I`m sure no one is looking at.
But the Web is going to evolve. We already can deliver any kind of rich media, and we do. So you`re going to see
interstitials. You`re going to see ads going through personal digital assistants. You`re going to see ad campaigns with
your e-mail certainly. You`re going to see ad campaigns get more sophisticated in the sense that it won`t just be a
one-shot banner, but it might be a series of banners that an individual sees over time.
So I think the strategies are evolving, they`re going to get more complicated as people learn how to make the
medium more effective. Bandwidth and technology improvements are going to allow for some amazing new things.
So I think there`ll always be room for the banner in a sense, but already things have evolved so much in the three
years since I`ve been with DoubleClick. It started out, there was one banner on one page all the time. Now people
have text links and buttons and interstitials and all sorts of stuff, and it`s just going to get more complicated. It`s a
long winded answer of saying, "Sure, things are going to evolve. But that`s great, we`re happy."
It just means that people are finding ways to get things from a the Web. You know, a banner`s just a hunk of data to
us, and the only reason people do banners the way they do is because it`s a convenient standard and it makes it
easier to do dynamic targeting, because of the size of the space. That`s why everybody uses the same size.
Technology can cchange, it already has, where size can be flexible.
So those are my answers there. We`re optimistic, we love the change, we think it`s going to be great for us.
ZDII: Coming back to the subject we started with, who are you seeing most often in your contract competitions?
Collins: Which side, on media or just in general?
ZDII: In all your segments.
Collins: I`ll just break it down briefly.
In the media segment, we`re competing with everyone else who sells advertising on the Web. We`re competitng with
the Yahoos, we`re competing with the CMGi guys, 24/7 Media (Nasdaq: TFSM) is another network. All the individual
sites are out there looking for ad dollars, we`re all competing for ad dollars with the same population.
ZDII: Is there anyone who you see more often than others?
Collins: Well, I think you see the people who sell the most. Yahoo! (Nasdaq: YHOO) and America Online (NYSE:
AOL)are the big heavyweights out there, 24/7 has done a good job, we`ve been more successful than they have, but
again, it`s a big market that`s growing quickly.
One thing that`s interesting that we are very proud of: there`s a group called The Myers Group, I don`t know if you`ve
ever heard of them, but they`re like the J.D. Power for the advertising industry, very prestigious; they`d never done
the Web before, they went out and looked at 28 sales organizations, amongst them AOL, Yahoo, and DoubleClick,
out of the 13 categories that they ranked, we came back from our customers` point of view as the best in 11 of the
13, and number two or number three in the other two.. And so I think that our customers and our growth are
evidence of the fact -- we`re out there competing with AOL and Yahoo and the best -- our customers think we`re the
best at what we do. So a little plug there, I think it was worth mentioning.
On the technology side, really the market has consolidated quite a bit, and it`s testament to the fact that this is a
difficult thing to do, to manage data operations around the world and handle this complicated software. There are
very, very few material, if not completely immaterial, entrants into the ad serving arena. So you have the AdForces
that are out there, Engage is out there and Real Media and us, and we`re the clear leader there. And that`s been a
relatively static landscape, with our continuing to take more and more share from those individuals.
On the Abacus front, they pretty much stood alone on their offline side, in terms of, they were considered the best
and they were the market leaders. As far as the sort of online data targeting thing, DoubleClick has already been
doing already that for several years. With our Abacus merger, we`ve now got additional unique assets that will
absolutely allow us to continue to be the best, as far as database targeting. Certainly the CMGi guys are out there
with Engage, but we`re way ahead of them, in terms of customer base and everything else.
ZDII: The only other thing I`m wondering about then, I think probably your one of your most high-profile contracts that
was announced was Lycos (Nasdaq: LCOS) -- actually, I didn`t see a news release on that...
Collins: We haven`t done a news release, and we don`t always do news releases, but we mentioned it on the
(quarterly analyst) call, that was our way of letting everybody know that we`ve signed that.
ZDII: Relative to your other contracts in the media space, how does it stack up?
Collins: Certainly it`s a very significant client that we are unbelievably pleased to have signed for a variety of reasons.
In terms of volume of ads served, they`re larger than AltaVista, so they would absolutely be one of our
highest-volume sites.
I think one that`s really -- if you want to talk about inflection points -- it`s a great sort of win, in the sense that we`ve
always said that managing data operations and assets is a difficult thing, that even big companies aren`t always
going to want to do on their own. And I think seeing Lycos turn to us because they know we can help them be more
profitable and please their customers more, is in many ways, a validation of our strategy, in that all size sites will
look to us for services and solutions, in one form or another. So we`re very excited about having them on, we hope
we`ll do a great job for them.
ZDII: Obviously Lycos likes what you do, but did you get any sense that one reason why they chose to go with
Doubleclick is because of -- I mean, Lycos` relationship with CMGi probably isn`t what it used to be, ever since the
USA Networks thing.
Collins: Well, you know, public companies -- everyone always looks at this like a soap opera, (people think)
everybody`s making decisions because of who knows who, or how they are emotionally attached -- good
businesses make good business decisions, and Lycos felt that working with DoubleClick was the best business
decision, and as a public company, you know, you`re obligated to do just that.
All of us who are out here competing on the Web, it`s an exciting time to be doing this. Everybody wants to win, of
course, everybody`s working hard, and this is great for consumers overall. But I think it`s less of a soap opera than
people might want it to be.
But I can`t really comment on whether internal politcs played a role in their decision. If anything, I would say Lycos
selecting us in the face of whatever could be there shows how much they valued the fundamental, good business
part of coming to work with us.
By: Mr.Gribknows
Reply To: None Wednesday, 2 Feb 2000 at 8:16 AM EST
Post # of 68040
OT:
A Message from DoubleClick President on Privacy
This message was sent to all Clients of DoubleClick.
We’re aware that many of you are receiving form emails about DoubleClick. These forms are being generated by a special interest group in Washington D.C.
In the last week, some inaccurate articles have appeared in the press about DoubleClick’s business. Those articles have conveyed the false impression that DoubleClick links personally identifiable information without giving consumers choice. Those articles are simply wrong.
It is important for you to understand the following:
· DoubleClick has been a pioneer in setting standards for consumer privacy online and we were the first to offer a universal opt-out for consumers. DoubleClick always encourages consumers to make informed choices and we encourage all consumers that are not interested in getting targeted advertising to opt-out on our web site at http://www.doubleclick.net/privacy_policy/privacy.htm.
· DoubleClick does not use highly sensitive information for profiling such as health information, detailed financial information, information of a sexual nature and information on children.
· DoubleClick will not link personally identifiable information about a user to online behavior without first giving that user notice and the choice not to participate.
· DoubleClick does not and cannot know the identity of a user online unless that user has provided that information to an Abacus Online participant who has provided the user with the appropriate notice and choice.
· Again, DoubleClick is absolutely committed to protecting the privacy of all Internet Users. DoubleClick wants users to be informed and they leave the decision up to them to decide whether or not to opt-out.
Our goal is to deliver relevant advertising to consumers and keep the Internet free. We offer you the best, most reliable and scalable ad delivery service in the world.
We apologize for the emails you have been receiving because of this special interest email campaign. Below we’ve drafted a response that you can send to any consumer with concerns. This is an industry issue and we urge you all to include privacy policies on your sites.
We are hosting a conference call on this topic for all interested clients at 5:00 PM today, Wednesday, Febuary 2, 2000. You can dial in at 800.263.9160 or 212.676.5395.
Kevin Ryan President, DoubleClick
LETTER TO CONSUMERS:
In the last week, some inaccurate articles have appeared in the press about DoubleClick’s business. Those articles have conveyed the false impression that DoubleClick links personally identifiable information without giving consumers choice. Those articles are simply wrong.
It is important for you to understand the following:
· DoubleClick has been a pioneer in setting standards for consumer privacy online and we were the first to offer a universal opt-out for consumers. DoubleClick always encourages consumers to make informed choices and we encourage all consumers that are not interested in getting targeted advertising to opt-out on our web site at http://www.doubleclick.net/privacy_policy/privacy.htm.
· DoubleClick does not use highly sensitive information for profiling such as health information, detailed financial information, information of a sexual nature and information on children, are not appropriate for profiling.
· DoubleClick will not link personally identifiable information about a user to online behavior without first giving that user notice and the choice not to participate.
· DoubleClick does not and cannot know the identity of a user online unless that user has provided that information to an Abacus Online participant who has provided the user with the appropriate notice and choice.
· Again, DoubleClick is absolutely committed to protecting the privacy of all Internet Users. DoubleClick wants users to be informed and they leave the decision up to you to decide whether or not to opt-out.
DoubleClick’s goal is to deliver relevant advertising to consumers and keep the Internet free.
Reply To: None Wednesday, 2 Feb 2000 at 8:16 AM EST
Post # of 68040
OT:
A Message from DoubleClick President on Privacy
This message was sent to all Clients of DoubleClick.
We’re aware that many of you are receiving form emails about DoubleClick. These forms are being generated by a special interest group in Washington D.C.
In the last week, some inaccurate articles have appeared in the press about DoubleClick’s business. Those articles have conveyed the false impression that DoubleClick links personally identifiable information without giving consumers choice. Those articles are simply wrong.
It is important for you to understand the following:
· DoubleClick has been a pioneer in setting standards for consumer privacy online and we were the first to offer a universal opt-out for consumers. DoubleClick always encourages consumers to make informed choices and we encourage all consumers that are not interested in getting targeted advertising to opt-out on our web site at http://www.doubleclick.net/privacy_policy/privacy.htm.
· DoubleClick does not use highly sensitive information for profiling such as health information, detailed financial information, information of a sexual nature and information on children.
· DoubleClick will not link personally identifiable information about a user to online behavior without first giving that user notice and the choice not to participate.
· DoubleClick does not and cannot know the identity of a user online unless that user has provided that information to an Abacus Online participant who has provided the user with the appropriate notice and choice.
· Again, DoubleClick is absolutely committed to protecting the privacy of all Internet Users. DoubleClick wants users to be informed and they leave the decision up to them to decide whether or not to opt-out.
Our goal is to deliver relevant advertising to consumers and keep the Internet free. We offer you the best, most reliable and scalable ad delivery service in the world.
We apologize for the emails you have been receiving because of this special interest email campaign. Below we’ve drafted a response that you can send to any consumer with concerns. This is an industry issue and we urge you all to include privacy policies on your sites.
We are hosting a conference call on this topic for all interested clients at 5:00 PM today, Wednesday, Febuary 2, 2000. You can dial in at 800.263.9160 or 212.676.5395.
Kevin Ryan President, DoubleClick
LETTER TO CONSUMERS:
In the last week, some inaccurate articles have appeared in the press about DoubleClick’s business. Those articles have conveyed the false impression that DoubleClick links personally identifiable information without giving consumers choice. Those articles are simply wrong.
It is important for you to understand the following:
· DoubleClick has been a pioneer in setting standards for consumer privacy online and we were the first to offer a universal opt-out for consumers. DoubleClick always encourages consumers to make informed choices and we encourage all consumers that are not interested in getting targeted advertising to opt-out on our web site at http://www.doubleclick.net/privacy_policy/privacy.htm.
· DoubleClick does not use highly sensitive information for profiling such as health information, detailed financial information, information of a sexual nature and information on children, are not appropriate for profiling.
· DoubleClick will not link personally identifiable information about a user to online behavior without first giving that user notice and the choice not to participate.
· DoubleClick does not and cannot know the identity of a user online unless that user has provided that information to an Abacus Online participant who has provided the user with the appropriate notice and choice.
· Again, DoubleClick is absolutely committed to protecting the privacy of all Internet Users. DoubleClick wants users to be informed and they leave the decision up to you to decide whether or not to opt-out.
DoubleClick’s goal is to deliver relevant advertising to consumers and keep the Internet free.
US privacy groups urge action against DoubleClick
(Adds class action suit in paragraphs 2, 8-9) By Aaron Pressman
WASHINGTON, Feb 1 (Reuters) - A leading privacy group on Tuesday started a campaign urging Internet users to keep their personal information
and Web surfing habits away from DoubleClick Inc. <DCLK.O>, the leading net advertisement placement service.
And, separately, lawyers brought a class action suit seeking damages from the Madison Avenue advertising firm for allegedly obtaining information
from Internet surfers illegally.
The moves followed DoubleClick`s announcement last month that it planned to begin combining tracking of Web surfers` visits to about 1,500 Internet
sites with people`s actual identities.
Currently, DoubleClick puts unique identifying traces on the computers of people who visit many Web sites where it places ads and tracks what people
are viewing. But the profiles are not linked to people`s actual names and addresses.
DoubleClick said that under its new program, not yet in effect, it would still use the information only to tailor advertising and direct mailings to desirable
customers. And the company would also continue to exclude sensitive data about health and sexual matters along with "detailed" financial information
from its profiles.
But the Center for Democracy and Technology, a nonprofit group based in Washington, said the plan went too far and created a massive surveillance
database that could later be accessed by the government, other companies and even parties to civil lawsuits.
Web surfers were urged to "opt out" of the DoubleClick system and send e-mail opposing the new practice to the company and to leading Web sites
that carry ads placed by DoubleClick. Those sites include Altavista, the New York Times and Sesame Street. CDT posted information about its
campaign at http://www.cdt.org/action/doubleclick.shtml.
In a separate development, lawyers for Nancy Donaldson, a resident of California, and others filed a suit in the southern district of New York claiming
damages of $1,000 for each person who accessed a DoubleClick advertisement since January, 1996.
"DoubleClick has invaded plaintiff`s and the class` privacy by surreptitiously, and in an unauthorized manner, accessing their personal computer hard
disk drives and obtaining electronic information and communications and using that electronic information for DoubleClick`s own benefit," the class
action said.
Visitors to many Web sites that carry ads placed by DoubleClick may not realize that the firm, not just the Web site they are visiting, can record what
pages they visit.
DoubleClick, which has faced substantial criticism from privacy groups since announcing the new service, places ads on about 11,000 Web sites but
only tracks movements on about 1,500 of those.
Company officials emphasized that Internet users would be given a chance to prohibit tracking whenever they signed up or gave personal information
to a Web site participating in the new program.
"We`d like Web users to be well-informed and to understand exactly what we and other advertising services do," Senior Vice President Jonathan
Shapiro said. "The only reason we`re doing any of this is to get the right message to the right person at the right time."
Only people who registered and provided personal data to one of the Web sites participating in the new program would be tracked by name, the
company said. But once such tracking started, movements would be recorded at all the 1,500 Web sites that carry DoubleClick ads and provide
tracking data.
CDT and other privacy groups said the warnings and "opt out" option were confusing and inadequate.
"Consumers are not being given adequate notice about a third company`s involvement here," said CDT policy analyst Ari Schwartz. "It`s really about
consumer awareness and letting the public voice their concerns."
Other groups are planning to file a complaint to the Federal Trade Commission alleging DoubleClick`s tracking and identifying service was illegal, said
Marc Rotenberg, executive director of the Electronic Privacy Information Center in Washington.
Rotenberg argued that notice of data collection and "opt out" options have not worked adequately even when notifying Web surfers about the policies
of the actual Web site being visited.
"It`s even less likely to work when given for a third party," he said. "The customer for the advertiser is the business."
(Adds class action suit in paragraphs 2, 8-9) By Aaron Pressman
WASHINGTON, Feb 1 (Reuters) - A leading privacy group on Tuesday started a campaign urging Internet users to keep their personal information
and Web surfing habits away from DoubleClick Inc. <DCLK.O>, the leading net advertisement placement service.
And, separately, lawyers brought a class action suit seeking damages from the Madison Avenue advertising firm for allegedly obtaining information
from Internet surfers illegally.
The moves followed DoubleClick`s announcement last month that it planned to begin combining tracking of Web surfers` visits to about 1,500 Internet
sites with people`s actual identities.
Currently, DoubleClick puts unique identifying traces on the computers of people who visit many Web sites where it places ads and tracks what people
are viewing. But the profiles are not linked to people`s actual names and addresses.
DoubleClick said that under its new program, not yet in effect, it would still use the information only to tailor advertising and direct mailings to desirable
customers. And the company would also continue to exclude sensitive data about health and sexual matters along with "detailed" financial information
from its profiles.
But the Center for Democracy and Technology, a nonprofit group based in Washington, said the plan went too far and created a massive surveillance
database that could later be accessed by the government, other companies and even parties to civil lawsuits.
Web surfers were urged to "opt out" of the DoubleClick system and send e-mail opposing the new practice to the company and to leading Web sites
that carry ads placed by DoubleClick. Those sites include Altavista, the New York Times and Sesame Street. CDT posted information about its
campaign at http://www.cdt.org/action/doubleclick.shtml.
In a separate development, lawyers for Nancy Donaldson, a resident of California, and others filed a suit in the southern district of New York claiming
damages of $1,000 for each person who accessed a DoubleClick advertisement since January, 1996.
"DoubleClick has invaded plaintiff`s and the class` privacy by surreptitiously, and in an unauthorized manner, accessing their personal computer hard
disk drives and obtaining electronic information and communications and using that electronic information for DoubleClick`s own benefit," the class
action said.
Visitors to many Web sites that carry ads placed by DoubleClick may not realize that the firm, not just the Web site they are visiting, can record what
pages they visit.
DoubleClick, which has faced substantial criticism from privacy groups since announcing the new service, places ads on about 11,000 Web sites but
only tracks movements on about 1,500 of those.
Company officials emphasized that Internet users would be given a chance to prohibit tracking whenever they signed up or gave personal information
to a Web site participating in the new program.
"We`d like Web users to be well-informed and to understand exactly what we and other advertising services do," Senior Vice President Jonathan
Shapiro said. "The only reason we`re doing any of this is to get the right message to the right person at the right time."
Only people who registered and provided personal data to one of the Web sites participating in the new program would be tracked by name, the
company said. But once such tracking started, movements would be recorded at all the 1,500 Web sites that carry DoubleClick ads and provide
tracking data.
CDT and other privacy groups said the warnings and "opt out" option were confusing and inadequate.
"Consumers are not being given adequate notice about a third company`s involvement here," said CDT policy analyst Ari Schwartz. "It`s really about
consumer awareness and letting the public voice their concerns."
Other groups are planning to file a complaint to the Federal Trade Commission alleging DoubleClick`s tracking and identifying service was illegal, said
Marc Rotenberg, executive director of the Electronic Privacy Information Center in Washington.
Rotenberg argued that notice of data collection and "opt out" options have not worked adequately even when notifying Web surfers about the policies
of the actual Web site being visited.
"It`s even less likely to work when given for a third party," he said. "The customer for the advertiser is the business."
DoubleClick Accused Of Double-Dealing Double-Cross
February 02, 2000: 8:31 a.m. ET
WASHINGTON, DC, U.S.A. (NB) -- By Martin Stone, Newsbytes. Washington-based watchdog organization the Center for Democracy and Technology (CDT) has launched a hard-line campaign against an alleged effort by online advertising service DoubleClick Inc. [NASDAQCLK] to track individual identities and actions online and tie them to offline behavior.
The group kicked off the campaign Tuesday by launching a "Websit" under the slogan "I Will Not Be Targeted," at http://www.cdt.org/action/doubleclick.shtml where users can opt out of Doubleclick`s profiling activities; send an e-mail to Doubleclick`s CEO, Kevin O`Connor, objecting to the tracking; and e-mail Doubleclick`s member Websites telling them not to sell or disclose individual identities to Doubleclick.
According to CDT Staff Counsel Deirdre Mulligan, "You may have already been double-crossed by DoubleClick or you may be next in line. In either case, if you care about your privacy and want to surf the Web without your every move being recorded in a giant database connected to your name, its time to opt-out of DoubleClick`s profiling."
"Once Doubleclick knows who you are, it can tie information about your use of the Web garnered through its cookies to information about your offline habits," Mulligan added. "Opt-out is not a perfect solution to privacy concerns online, but it`s something you can do right away and we`ve tried to made it quick and easy with our online resource."
As recently reported by Newsbytes, DoubleClick has been hit by a lawsuit brought by a Californian woman who alleges the company unlawfully obtained and sold private personal information. The company is also the target of a complaint filed by Internet privacy group Electronic Privacy Information Center (EPIC) with the Federal Trade Commission (FTC), which will reportedly consider the action on Feb. 4.
DoubleClick also was cited as a culprit in passing on sensitive customer information from medical Websites in a report released Tuesday by the California HealthCare Foundation.
DoubleClick Senior Vice President Jonathan Shapiro said his company has one goal in recording which Web pages and Internet ads consumers see on its network.
"This is about getting the right ad to the right person at the right time. I believe it`s important for users to understand that the only time that DoubleClick... will actually have personally identifiable information attached to a browser is where the user has volunteered the information and been given notice and choice," Shapiro added.
But, CDT contended that DoubleClick uses cookies to link online surfing habits and purchases with offline names, addresses and other identifying information, threatening to deprive consumers of control over their identity online.
The group said DoubleClick`s network includes major sites such as Altavista, the New York Times, Sesame Street, CBS Sportsline, Travelocity, drkoop.com, Mindspring, TheStreet.com, NBC and the Wall Street Journal.
CDT conceded that it doesn’t know for sure which of DoubleClick`s member sites are actually passing on user information.
By utilizing their Opt-out Website, the organization said users who care about their privacy can take action against DoubleClick, reassert control over their data and send a message through the marketplace that anti-privacy business practices don`t pay.
CDT described DoubleClick`s tracking and profiling system as one which plants a cookie when a user visits one of the sites in the DoubleClick network, and added that most users don`t know the cookie is in operation. The group contends this allows DoubleClick to recognize an individual computer when the user visits the same site again or another site within DoubleClick`s network, allowing the customization of content and advertisements based on prior visits.
CDT inferred that DoubleClick uses the data to compile user profiles that may contain "inferential" or "psychographic" data, based on surfing habits.
The watchdogs said that DoubleClick has repeatedly stated that its cookies identified computers but not users, and that it couldn`t link cookies to names and home addresses or other elements of personal identity and didn`t want to do so. But, CDT said, DoubleClick now acknowledges it has begun to tie surfing habits and online searches to personal identity and asserts that DoubleClick has quietly entered into pacts with at least 10 unidentified Websites to collect names, addresses, and other personal information, including credit card numbers.
Moreover, CDT stated, DoubleClick can tie information about Web usage to offline habits from data gathered by DoubleClick`s recently acquired Abacus Direct Corp.`s online purchasing database.
DoubleClick officials said users already have the opportunity to "opt out" by going to the company`s Website and hitting an opt-out button, but privacy advocates declare the option is ineffective because many users don`t realize the extent to which they are supposedly being tracked.
Reported by Newsbytes.com, http://www.newsbytes.com .
07:11 CST
(20000202/Press Contact: Ari Schwartz, 202-637-9800, e-mail: ari@cdt.org/WIRES ONLINE, PC, LEGAL, BUSINESS /DOUBLECLICK/PHOTO)
February 02, 2000: 8:31 a.m. ET
WASHINGTON, DC, U.S.A. (NB) -- By Martin Stone, Newsbytes. Washington-based watchdog organization the Center for Democracy and Technology (CDT) has launched a hard-line campaign against an alleged effort by online advertising service DoubleClick Inc. [NASDAQCLK] to track individual identities and actions online and tie them to offline behavior.
The group kicked off the campaign Tuesday by launching a "Websit" under the slogan "I Will Not Be Targeted," at http://www.cdt.org/action/doubleclick.shtml where users can opt out of Doubleclick`s profiling activities; send an e-mail to Doubleclick`s CEO, Kevin O`Connor, objecting to the tracking; and e-mail Doubleclick`s member Websites telling them not to sell or disclose individual identities to Doubleclick.
According to CDT Staff Counsel Deirdre Mulligan, "You may have already been double-crossed by DoubleClick or you may be next in line. In either case, if you care about your privacy and want to surf the Web without your every move being recorded in a giant database connected to your name, its time to opt-out of DoubleClick`s profiling."
"Once Doubleclick knows who you are, it can tie information about your use of the Web garnered through its cookies to information about your offline habits," Mulligan added. "Opt-out is not a perfect solution to privacy concerns online, but it`s something you can do right away and we`ve tried to made it quick and easy with our online resource."
As recently reported by Newsbytes, DoubleClick has been hit by a lawsuit brought by a Californian woman who alleges the company unlawfully obtained and sold private personal information. The company is also the target of a complaint filed by Internet privacy group Electronic Privacy Information Center (EPIC) with the Federal Trade Commission (FTC), which will reportedly consider the action on Feb. 4.
DoubleClick also was cited as a culprit in passing on sensitive customer information from medical Websites in a report released Tuesday by the California HealthCare Foundation.
DoubleClick Senior Vice President Jonathan Shapiro said his company has one goal in recording which Web pages and Internet ads consumers see on its network.
"This is about getting the right ad to the right person at the right time. I believe it`s important for users to understand that the only time that DoubleClick... will actually have personally identifiable information attached to a browser is where the user has volunteered the information and been given notice and choice," Shapiro added.
But, CDT contended that DoubleClick uses cookies to link online surfing habits and purchases with offline names, addresses and other identifying information, threatening to deprive consumers of control over their identity online.
The group said DoubleClick`s network includes major sites such as Altavista, the New York Times, Sesame Street, CBS Sportsline, Travelocity, drkoop.com, Mindspring, TheStreet.com, NBC and the Wall Street Journal.
CDT conceded that it doesn’t know for sure which of DoubleClick`s member sites are actually passing on user information.
By utilizing their Opt-out Website, the organization said users who care about their privacy can take action against DoubleClick, reassert control over their data and send a message through the marketplace that anti-privacy business practices don`t pay.
CDT described DoubleClick`s tracking and profiling system as one which plants a cookie when a user visits one of the sites in the DoubleClick network, and added that most users don`t know the cookie is in operation. The group contends this allows DoubleClick to recognize an individual computer when the user visits the same site again or another site within DoubleClick`s network, allowing the customization of content and advertisements based on prior visits.
CDT inferred that DoubleClick uses the data to compile user profiles that may contain "inferential" or "psychographic" data, based on surfing habits.
The watchdogs said that DoubleClick has repeatedly stated that its cookies identified computers but not users, and that it couldn`t link cookies to names and home addresses or other elements of personal identity and didn`t want to do so. But, CDT said, DoubleClick now acknowledges it has begun to tie surfing habits and online searches to personal identity and asserts that DoubleClick has quietly entered into pacts with at least 10 unidentified Websites to collect names, addresses, and other personal information, including credit card numbers.
Moreover, CDT stated, DoubleClick can tie information about Web usage to offline habits from data gathered by DoubleClick`s recently acquired Abacus Direct Corp.`s online purchasing database.
DoubleClick officials said users already have the opportunity to "opt out" by going to the company`s Website and hitting an opt-out button, but privacy advocates declare the option is ineffective because many users don`t realize the extent to which they are supposedly being tracked.
Reported by Newsbytes.com, http://www.newsbytes.com .
07:11 CST
(20000202/Press Contact: Ari Schwartz, 202-637-9800, e-mail: ari@cdt.org/WIRES ONLINE, PC, LEGAL, BUSINESS /DOUBLECLICK/PHOTO)
Privacy group complains to FTC about DoubleClick
WASHINGTON, Feb 10 (Reuters) - A leading privacy group on Thursday filed a complaint with the Federal Trade Commission accusing leading
Internet advertising firm DoubleClick Inc. <DCLK.O> of misleading millions of consumers.
The nonprofit Electronic Privacy Information Center said DoubleClick`s plan to track Internet users by name as they move through the World Wide
Web was deceptive and unfair.
DoubleClick could not be reached immediately for comment. In the past the company said its tracking plan would only involve consumers who had
been warned and given a chance to opt out.
But officials at the privacy center said DoubleClick`s notices and policies contradicted assurances it had made in previous years and were unlikely
to be noticed by many consumers.
"This complaint against DoubleClick is a critical test of the current state of privacy protection in the United States," said Marc Rotenberg, executive
director of the center.
"We are looking to the Federal Trade Commission to see whether companies that break their promises and collect personal information in an unfair
and deceptive manner will be held accountable."
DoubleClick places ads on thousands of Web sites. On about 1,500 of those sites, the company also places a unique identification code on the
computers of Web visitors and then tracks the activities of those surfers. But the profiles are not linked to people`s actual names and addresses.
In January the company disclosed plans to create a program that would match people`s names with their Web surfing activity. The program has not
started yet and would only involve Web sites that notified consumers and offered a chance to opt out, the company said.
DoubleClick stock was up 15-9/16 to 118-1/2 in afternoon trading on the Nasdaq.
WASHINGTON, Feb 10 (Reuters) - A leading privacy group on Thursday filed a complaint with the Federal Trade Commission accusing leading
Internet advertising firm DoubleClick Inc. <DCLK.O> of misleading millions of consumers.
The nonprofit Electronic Privacy Information Center said DoubleClick`s plan to track Internet users by name as they move through the World Wide
Web was deceptive and unfair.
DoubleClick could not be reached immediately for comment. In the past the company said its tracking plan would only involve consumers who had
been warned and given a chance to opt out.
But officials at the privacy center said DoubleClick`s notices and policies contradicted assurances it had made in previous years and were unlikely
to be noticed by many consumers.
"This complaint against DoubleClick is a critical test of the current state of privacy protection in the United States," said Marc Rotenberg, executive
director of the center.
"We are looking to the Federal Trade Commission to see whether companies that break their promises and collect personal information in an unfair
and deceptive manner will be held accountable."
DoubleClick places ads on thousands of Web sites. On about 1,500 of those sites, the company also places a unique identification code on the
computers of Web visitors and then tracks the activities of those surfers. But the profiles are not linked to people`s actual names and addresses.
In January the company disclosed plans to create a program that would match people`s names with their Web surfing activity. The program has not
started yet and would only involve Web sites that notified consumers and offered a chance to opt out, the company said.
DoubleClick stock was up 15-9/16 to 118-1/2 in afternoon trading on the Nasdaq.
ADVISORY/DoubleClick to Unveil Major
Privacy Initiatives
NEW YORK--(BUSINESS WIRE)--February 11, 2000--DoubleClick Inc.
(Nasdaq: DCLK), a leading Internet advertising solutions company, will
outline a new five point online privacy initiative to increase
consumer`s awareness of their choices on the Internet.
When: Monday, February 14, 1:00 p.m. EST
Where: DoubleClick Corporate Headquarters
450 West 33rd Street
16th Floor
New York, NY 10001
For those editors unable to attend the event in person, a hosted
conference telephone line is available. When greeted by the operator
ask for the DoubleClick conference call.
-- Domestic callers: 800-840-6216
-- International callers: 212-346-6451
About DoubleClick
DoubleClick Inc. (www.doubleclick.net) is a leading provider of
comprehensive global Internet advertising solutions for marketers and
Web publishers. Combining technology, media and data expertise,
DoubleClick centralizes planning, execution, control, tracking and
reporting for online media campaigns. Abacus Direct, a division of
DoubleClick Inc., manages the Abacus Alliance, the nation`s largest
proprietary database of consumer buying behavior used for target
marketing purposes on the Internet and through direct mail.
DoubleClick Inc. has global headquarters in New York City and
maintains offices in over 20 countries.
DoubleClick, privacychoices.org and the DoubleClick logo are the
property of DoubleClick, Inc. All other names and trademarks are the
property of their respective holders.
--30--jc/ny*
CONTACT: Press Contact:
DoubleClick, Inc. The Weber Group
Jennifer Blum Ed Schauweker
212-381-5705 703-351-5615
jblumdoubleclick.net eschauwekerwebergroup.com
TodINDUSTRY KEYWORD: HARDWARE INTERNET E-COMMERCE ADVISORY
Today`s News On The Net - Business Wire`s full file on the Internet
with Hyperlinks to your home page.
URL: http://www.businesswire.com
(c) 1998 Business Wire
Privacy Initiatives
NEW YORK--(BUSINESS WIRE)--February 11, 2000--DoubleClick Inc.
(Nasdaq: DCLK), a leading Internet advertising solutions company, will
outline a new five point online privacy initiative to increase
consumer`s awareness of their choices on the Internet.
When: Monday, February 14, 1:00 p.m. EST
Where: DoubleClick Corporate Headquarters
450 West 33rd Street
16th Floor
New York, NY 10001
For those editors unable to attend the event in person, a hosted
conference telephone line is available. When greeted by the operator
ask for the DoubleClick conference call.
-- Domestic callers: 800-840-6216
-- International callers: 212-346-6451
About DoubleClick
DoubleClick Inc. (www.doubleclick.net) is a leading provider of
comprehensive global Internet advertising solutions for marketers and
Web publishers. Combining technology, media and data expertise,
DoubleClick centralizes planning, execution, control, tracking and
reporting for online media campaigns. Abacus Direct, a division of
DoubleClick Inc., manages the Abacus Alliance, the nation`s largest
proprietary database of consumer buying behavior used for target
marketing purposes on the Internet and through direct mail.
DoubleClick Inc. has global headquarters in New York City and
maintains offices in over 20 countries.
DoubleClick, privacychoices.org and the DoubleClick logo are the
property of DoubleClick, Inc. All other names and trademarks are the
property of their respective holders.
--30--jc/ny*
CONTACT: Press Contact:
DoubleClick, Inc. The Weber Group
Jennifer Blum Ed Schauweker
212-381-5705 703-351-5615
jblumdoubleclick.net eschauwekerwebergroup.com
TodINDUSTRY KEYWORD: HARDWARE INTERNET E-COMMERCE ADVISORY
Today`s News On The Net - Business Wire`s full file on the Internet
with Hyperlinks to your home page.
URL: http://www.businesswire.com
(c) 1998 Business Wire
DoubleClick faces new legal action, shares fall
(adds analysts comments paras 18-21, updates share price)
NEW YORK, Feb 17 (Reuters) - DoubleClick Inc., <DCLK.O> the leading online advertising firm that has become a lightning rod for fears about privacy on the
Web, came under a new legal attack on Thursday, and its shares fell 15 percent.
The Michigan attorney general`s office said it began legal proceedings on Thursday against the New York-based firm, which collects increasingly personal data on
Internet users to send targeted advertising on the Web.
Shares in DoubleClick, which already is facing a California lawsuit and inquiries out of Washington and New York, fell 17 to 89-1/2 on Thursday, making it one of
the top net losers on Nasdaq.
DoubleClick has amassed 80 to 100 million detailed individual profiles, according to the Michigan attorney general. Michigan said DoubleClick delivered about 30
billion ads in December 1999 alone, through alliance with 1800 of most prominent Web publishers and over 11,000 sites worldwide.
The company defended its policies on Thursday, saying it does not and will not use "sensitive" data in the background data it compiles on Web surfers.
"DoubleClick has never and will never use sensitive online data in our profiles," Kevin Ryan, president of DoubleClick, said in a statement.
DoubleClick`s Washington lobbyist Josh Isay said sensitive information would include information related to health, finance, children or sexually explicit data.
"We don`t use information if you go to a children`s site, and Doubleclick doesn`t use personal information from children," he said.
Isay acknowledged that a child surfing other sites would be subject to anonymous data collection as there is no way to differentiate any Internet user`s age.
Profiles compiled by DoubleClick include information about Internet users such as what sites they`ve visited, for how long, what language they speak and what Web
browser they use.
This information was anonymous until recent months, when the company began to set up partnerships with certain Web sites that ask users to volunteer their names,
addresses and e-mail addresses.
In November, DoubleClick bought Abacus Direct, a direct marketing research firm, giving it access to a large database of offline customer information.
Privacy advocates are alarmed at the prospect of a database formed by combining these three sources, despite DoubleClick`s statements that the company can only
connect Web use to an individual only if an informed user volunteers their identity.
"It is DoubleClick`s policy to only merge personally identifiable information with non-personally identifiable information for profiling, after providing clear notice and
choice," said Ryan.
Privacy advocates have maintained that DoubleClick`s advisory to users who are asked to volunteer their names is not clear enough, while DoubleClick maintains
anyone who wants to can opt out of the system.
The FTC`s Bureau of Consumer Protection late on Wednesday said it has initiated a routine inquiry to determine if DoubleClick has engaged in unfair or deceptive
practices in violation of Section 5 of the Federal Trade Commission Act.
The New York Attorney General`s office is also conducting an informal inquiry into DoubleClick.
New York-based DoubleClick has said it is cooperating with the FTC probe and the New York attorney`s inquiry.
Analysts downplayed any long term threat to DoubleClick`s business, pointing out that in the offline, or real world, personal data is bought and sold constantly.
"The issue at hand is whether to have an opt in, or an opt out, policy," said Janney Montgomery Scott Inc. analyst Isakowitz Tomas. "The privacy advocates are
asking for an opt in policy, and if that happens it would have a negative impact on DoubleClick and a lot of other Internet companies."
"But I don`t see that happening in the U.S.," he said. "We are a marketing society."
CS First Boston analyst Richard Peterson gave a very small chance the company would be disallowed to connect the Abacus database to its online information.
"If they cannot connect their offline and online data, then they cannot make as much use of Abacus data they saw initially, and that takes 20 percent of their
business," he said. "But given the very small, maybe one percent, chance of this happening, the drop in share price is a big overreaction, and a buying opportunity
for the long-term."
(adds analysts comments paras 18-21, updates share price)
NEW YORK, Feb 17 (Reuters) - DoubleClick Inc., <DCLK.O> the leading online advertising firm that has become a lightning rod for fears about privacy on the
Web, came under a new legal attack on Thursday, and its shares fell 15 percent.
The Michigan attorney general`s office said it began legal proceedings on Thursday against the New York-based firm, which collects increasingly personal data on
Internet users to send targeted advertising on the Web.
Shares in DoubleClick, which already is facing a California lawsuit and inquiries out of Washington and New York, fell 17 to 89-1/2 on Thursday, making it one of
the top net losers on Nasdaq.
DoubleClick has amassed 80 to 100 million detailed individual profiles, according to the Michigan attorney general. Michigan said DoubleClick delivered about 30
billion ads in December 1999 alone, through alliance with 1800 of most prominent Web publishers and over 11,000 sites worldwide.
The company defended its policies on Thursday, saying it does not and will not use "sensitive" data in the background data it compiles on Web surfers.
"DoubleClick has never and will never use sensitive online data in our profiles," Kevin Ryan, president of DoubleClick, said in a statement.
DoubleClick`s Washington lobbyist Josh Isay said sensitive information would include information related to health, finance, children or sexually explicit data.
"We don`t use information if you go to a children`s site, and Doubleclick doesn`t use personal information from children," he said.
Isay acknowledged that a child surfing other sites would be subject to anonymous data collection as there is no way to differentiate any Internet user`s age.
Profiles compiled by DoubleClick include information about Internet users such as what sites they`ve visited, for how long, what language they speak and what Web
browser they use.
This information was anonymous until recent months, when the company began to set up partnerships with certain Web sites that ask users to volunteer their names,
addresses and e-mail addresses.
In November, DoubleClick bought Abacus Direct, a direct marketing research firm, giving it access to a large database of offline customer information.
Privacy advocates are alarmed at the prospect of a database formed by combining these three sources, despite DoubleClick`s statements that the company can only
connect Web use to an individual only if an informed user volunteers their identity.
"It is DoubleClick`s policy to only merge personally identifiable information with non-personally identifiable information for profiling, after providing clear notice and
choice," said Ryan.
Privacy advocates have maintained that DoubleClick`s advisory to users who are asked to volunteer their names is not clear enough, while DoubleClick maintains
anyone who wants to can opt out of the system.
The FTC`s Bureau of Consumer Protection late on Wednesday said it has initiated a routine inquiry to determine if DoubleClick has engaged in unfair or deceptive
practices in violation of Section 5 of the Federal Trade Commission Act.
The New York Attorney General`s office is also conducting an informal inquiry into DoubleClick.
New York-based DoubleClick has said it is cooperating with the FTC probe and the New York attorney`s inquiry.
Analysts downplayed any long term threat to DoubleClick`s business, pointing out that in the offline, or real world, personal data is bought and sold constantly.
"The issue at hand is whether to have an opt in, or an opt out, policy," said Janney Montgomery Scott Inc. analyst Isakowitz Tomas. "The privacy advocates are
asking for an opt in policy, and if that happens it would have a negative impact on DoubleClick and a lot of other Internet companies."
"But I don`t see that happening in the U.S.," he said. "We are a marketing society."
CS First Boston analyst Richard Peterson gave a very small chance the company would be disallowed to connect the Abacus database to its online information.
"If they cannot connect their offline and online data, then they cannot make as much use of Abacus data they saw initially, and that takes 20 percent of their
business," he said. "But given the very small, maybe one percent, chance of this happening, the drop in share price is a big overreaction, and a buying opportunity
for the long-term."
Michigan to file precursor to lawsuit vs DoubleClick
DETROIT, Feb 17 (Reuters) - The Michigan Attorney General`s office said it will file later on Thursday a precursor to a lawsuit against DoubleClick Inc.
<DCLK.O>, which has drawn fire for collecting data on Internet users.
"Attorney General (Jennifer) Granholm has authorized the action, and it is being finalized as we speak," Attorney General spokesman Chris De Witt told Reuters.
The Federal Trade Commission last week notified DoubleClick, the leading Internet advertising firm, that it was the subject of an informal probe examining whether
the company`s data collection practices were unfair or deceived consumers.
On Wednesday, the New York Attorney General`s office also said it was conducting an informal inquiry. DoubleClick`s Washington lobbyist Josh Isay told Reuters
that the company had not heard from the Michigan Attorney General`s office, whose filing of a notice of intended action appears to be a more serious step than the
informal inquiries. "DoubleClick is confident our business policies are consistent with our privacy statement and beneficial to consumers and advertisers," Isay said.
Controversy about the company erupted last month when DoubleClick revealed a new plan to track Internet user`s movements on the Web and combine that data
with people`s real names and addresses. The plan is not yet in effect, the company has said.
De Witt said the Michigan Attorney General`s office would give more details about its complaints against DoubleClick later on Thursday.
Under Michigan`s Consumer Protection Act, the state has 10 days to try to settle its differences with DoubleClick before it can file a lawsuit.
"That`s the earliest we could do it," De Witt said. "Typically, as long as discussions are ongoing and bearing fruit, we would hold off on filing suit."
Currently, DoubleClick assigns a unique identifying number to each Web surfer that visits one of about 1,500 sites where the company places ads and tracks
people`s movements. The company said it does not link the information to real names and addresses.
Isay said DoubleClick will give Internet users "clear notification and choice" before creating a profile that includes personal information identifying the individual.
But privacy advocates continued to sound alarms.
Privacy advocates were particularly troubled by DoubleClick`s tracking consumers across Web sites run by other companies. Some of those companies failed to
disclose even that DoubleClick was conducting tracking, they said.
In an attempt to address the complaints, DoubleClick on Monday unveiled five new privacy initiatives, including a media campaign to educate consumers through
ads and a Web site called http://www.privacychoices.org. The company said it already offered Web surfers an opportunity to avoid being tracked by opting out on
DoubleClick`s Web site.
Web surfers can go to a page on the DoubleClick Web site and request that the company stop tracking them. At that point, the company will erase the unique
identification code they placed in the surfer`s file.
DETROIT, Feb 17 (Reuters) - The Michigan Attorney General`s office said it will file later on Thursday a precursor to a lawsuit against DoubleClick Inc.
<DCLK.O>, which has drawn fire for collecting data on Internet users.
"Attorney General (Jennifer) Granholm has authorized the action, and it is being finalized as we speak," Attorney General spokesman Chris De Witt told Reuters.
The Federal Trade Commission last week notified DoubleClick, the leading Internet advertising firm, that it was the subject of an informal probe examining whether
the company`s data collection practices were unfair or deceived consumers.
On Wednesday, the New York Attorney General`s office also said it was conducting an informal inquiry. DoubleClick`s Washington lobbyist Josh Isay told Reuters
that the company had not heard from the Michigan Attorney General`s office, whose filing of a notice of intended action appears to be a more serious step than the
informal inquiries. "DoubleClick is confident our business policies are consistent with our privacy statement and beneficial to consumers and advertisers," Isay said.
Controversy about the company erupted last month when DoubleClick revealed a new plan to track Internet user`s movements on the Web and combine that data
with people`s real names and addresses. The plan is not yet in effect, the company has said.
De Witt said the Michigan Attorney General`s office would give more details about its complaints against DoubleClick later on Thursday.
Under Michigan`s Consumer Protection Act, the state has 10 days to try to settle its differences with DoubleClick before it can file a lawsuit.
"That`s the earliest we could do it," De Witt said. "Typically, as long as discussions are ongoing and bearing fruit, we would hold off on filing suit."
Currently, DoubleClick assigns a unique identifying number to each Web surfer that visits one of about 1,500 sites where the company places ads and tracks
people`s movements. The company said it does not link the information to real names and addresses.
Isay said DoubleClick will give Internet users "clear notification and choice" before creating a profile that includes personal information identifying the individual.
But privacy advocates continued to sound alarms.
Privacy advocates were particularly troubled by DoubleClick`s tracking consumers across Web sites run by other companies. Some of those companies failed to
disclose even that DoubleClick was conducting tracking, they said.
In an attempt to address the complaints, DoubleClick on Monday unveiled five new privacy initiatives, including a media campaign to educate consumers through
ads and a Web site called http://www.privacychoices.org. The company said it already offered Web surfers an opportunity to avoid being tracked by opting out on
DoubleClick`s Web site.
Web surfers can go to a page on the DoubleClick Web site and request that the company stop tracking them. At that point, the company will erase the unique
identification code they placed in the surfer`s file.
Gefällt mir gar nicht!
Bin leider nicht der Berherrscher der englischen Sprache.
Sonst verstehts ja wohl jeder hier, oder?
So long
measi
Bin leider nicht der Berherrscher der englischen Sprache.
Sonst verstehts ja wohl jeder hier, oder?
So long
measi
WRAPUP-DoubleClick faces new legal action, shares fall
(Adds details, privacy expert quotes, Engage share price; updates DoubleClick share price)
NEW YORK, Feb 17 (Reuters) - DoubleClick Inc., <DCLK.O> the leading online advertising firm that has become a lightning rod for fears about
privacy on the Web, came under a new legal attack on Thursday, sending its shares falling 15 percent.
The Michigan attorney general`s office said it began legal proceedings on Thursday against the New York-based firm, which collects increasingly
personal data on Internet users, and then sends advertising targeted to the user.
Shares in DoubleClick closed down 15-3/4 to 90-3/4 on Thursday, making it one of the top losers on Nasdaq.
The company is also facing five other similar lawsuits as well as government inquiries out of Washington and New York.
The company filed an annual report with the Securities and Exchange Commission on Thursday, saying it would need to expend significant resources
due to the lawsuits and inquiries.
"We may need to spend significant amounts on our legal defense," the company said. "Senior management may be required to divert their attention
from other portions of our business, new product launches may be deferred or canceled as a result of these proceedings."
DoubleClick has amassed 80 to 100 million detailed individual profiles, according to the Michigan attorney general. DoubleClick delivered about 30
billion ads in December 1999 alone, through alliance with 1800 of the most prominent Web publishers and over 11,000 sites worldwide.
The company, which is the subject of five other similar lawsuits, defended its policies on Thursday, saying it does not use "sensitive" personal details in
the background data it compiles on Web surfers.
"DoubleClick has never and will never use sensitive online data in our profiles," said Kevin Ryan, president of DoubleClick.
Sensitive information would include information related to health, finance, children or sexually explicit data, according to DoubleClick Washington
lobbyist Josh Isay.
"We don`t use information if you go to a children`s site, and Doubleclick doesn`t use personal information from children," he said.
Isay acknowledged that a child surfing other sites would be subject to anonymous data collection since there is no way to distinguish a user`s age.
DoubleClick profiles include information about Web sites visited; for how long; user`s language; and what Web browser they use.
This information was anonymous until recent months, when the company began to set up partnerships with certain Web sites that ask users for their
names, addresses and e-mail addresses.
In November, DoubleClick bought Abacus Direct, a direct marketing research firm, giving it access to a large database of offline customer
information.
Privacy advocates are alarmed at the prospect of a database formed from its online tracking, offline data about buying habits and volunteered user
information.
DoubleClick has asserted that it only collects Web data if individuals are informed of its efforts and volunteer their identities.
"It is DoubleClick`s policy to only merge personally identifiable information with non-personally identifiable information for profiling, after providing
clear notice and choice," said Ryan.
DoubleClick maintains that anyone can opt out of the tracking system, but privacy advocates said more of the burden should be on the company.
They said tracking should only be permitted after someone explicitly agrees first.
"I think we`ve gotten to the point now it is getting too difficult for consumers to discern," said Gary Clayton, president of Privacy Council, a
Dallas-based privacy consultancy. "I think there needs to be a default that the information isn`t used unless a consumer opts in."
The Federal Trade Commission`s Bureau of Consumer Protection late on Wednesday said it has initiated a routine inquiry to determine if
DoubleClick has engaged in unfair or deceptive practices in violation of the Federal Trade Commission Act.
The New York Attorney General`s office is also conducting an informal inquiry into DoubleClick.
DoubleClick has said it is cooperating with the FTC probe and the N.Y. inquiry.
Analysts downplayed any long-term threat to DoubleClick`s business, pointing out that traditional marketers buy and sell personal data constantly.
"The issue at hand is whether to have an opt-in, or an opt-out policy," said Janney Montgomery Scott Inc. analyst Tomas Isakowitz. "The privacy
advocates are asking for an opt-in policy, and if that happens it would have a negative impact on DoubleClick and a lot of other Internet companies."
"But I don`t see that happening in the U.S.," he said. "We are a marketing society."
CS First Boston analyst Richard Peterson said the odds were small that the company would be stopped from connecting the Abacus database to its
online information.
"If they cannot connect their offline and online data, then they cannot make as much use of Abacus data they saw initially, and that takes 20 percent of
their business," he said. "But given the very small, maybe one percent, chance of this happening, the drop in share price is a big overreaction, and a
buying opportunity for the long term."
DoubleClick rival Engage Technologies Inc. <ENGA.O> shares rose 10-7/8 to close at 117-/8 on Nasdaq.
(Adds details, privacy expert quotes, Engage share price; updates DoubleClick share price)
NEW YORK, Feb 17 (Reuters) - DoubleClick Inc., <DCLK.O> the leading online advertising firm that has become a lightning rod for fears about
privacy on the Web, came under a new legal attack on Thursday, sending its shares falling 15 percent.
The Michigan attorney general`s office said it began legal proceedings on Thursday against the New York-based firm, which collects increasingly
personal data on Internet users, and then sends advertising targeted to the user.
Shares in DoubleClick closed down 15-3/4 to 90-3/4 on Thursday, making it one of the top losers on Nasdaq.
The company is also facing five other similar lawsuits as well as government inquiries out of Washington and New York.
The company filed an annual report with the Securities and Exchange Commission on Thursday, saying it would need to expend significant resources
due to the lawsuits and inquiries.
"We may need to spend significant amounts on our legal defense," the company said. "Senior management may be required to divert their attention
from other portions of our business, new product launches may be deferred or canceled as a result of these proceedings."
DoubleClick has amassed 80 to 100 million detailed individual profiles, according to the Michigan attorney general. DoubleClick delivered about 30
billion ads in December 1999 alone, through alliance with 1800 of the most prominent Web publishers and over 11,000 sites worldwide.
The company, which is the subject of five other similar lawsuits, defended its policies on Thursday, saying it does not use "sensitive" personal details in
the background data it compiles on Web surfers.
"DoubleClick has never and will never use sensitive online data in our profiles," said Kevin Ryan, president of DoubleClick.
Sensitive information would include information related to health, finance, children or sexually explicit data, according to DoubleClick Washington
lobbyist Josh Isay.
"We don`t use information if you go to a children`s site, and Doubleclick doesn`t use personal information from children," he said.
Isay acknowledged that a child surfing other sites would be subject to anonymous data collection since there is no way to distinguish a user`s age.
DoubleClick profiles include information about Web sites visited; for how long; user`s language; and what Web browser they use.
This information was anonymous until recent months, when the company began to set up partnerships with certain Web sites that ask users for their
names, addresses and e-mail addresses.
In November, DoubleClick bought Abacus Direct, a direct marketing research firm, giving it access to a large database of offline customer
information.
Privacy advocates are alarmed at the prospect of a database formed from its online tracking, offline data about buying habits and volunteered user
information.
DoubleClick has asserted that it only collects Web data if individuals are informed of its efforts and volunteer their identities.
"It is DoubleClick`s policy to only merge personally identifiable information with non-personally identifiable information for profiling, after providing
clear notice and choice," said Ryan.
DoubleClick maintains that anyone can opt out of the tracking system, but privacy advocates said more of the burden should be on the company.
They said tracking should only be permitted after someone explicitly agrees first.
"I think we`ve gotten to the point now it is getting too difficult for consumers to discern," said Gary Clayton, president of Privacy Council, a
Dallas-based privacy consultancy. "I think there needs to be a default that the information isn`t used unless a consumer opts in."
The Federal Trade Commission`s Bureau of Consumer Protection late on Wednesday said it has initiated a routine inquiry to determine if
DoubleClick has engaged in unfair or deceptive practices in violation of the Federal Trade Commission Act.
The New York Attorney General`s office is also conducting an informal inquiry into DoubleClick.
DoubleClick has said it is cooperating with the FTC probe and the N.Y. inquiry.
Analysts downplayed any long-term threat to DoubleClick`s business, pointing out that traditional marketers buy and sell personal data constantly.
"The issue at hand is whether to have an opt-in, or an opt-out policy," said Janney Montgomery Scott Inc. analyst Tomas Isakowitz. "The privacy
advocates are asking for an opt-in policy, and if that happens it would have a negative impact on DoubleClick and a lot of other Internet companies."
"But I don`t see that happening in the U.S.," he said. "We are a marketing society."
CS First Boston analyst Richard Peterson said the odds were small that the company would be stopped from connecting the Abacus database to its
online information.
"If they cannot connect their offline and online data, then they cannot make as much use of Abacus data they saw initially, and that takes 20 percent of
their business," he said. "But given the very small, maybe one percent, chance of this happening, the drop in share price is a big overreaction, and a
buying opportunity for the long term."
DoubleClick rival Engage Technologies Inc. <ENGA.O> shares rose 10-7/8 to close at 117-/8 on Nasdaq.
FOCUS-DoubleClick CEO says FTC probe industry issue
By Reshma Kapadia,
NEW YORK, Feb 29 (Reuters) - DoubleClick Inc. <DCLK.O> Chief Executive Kevin O`Connor said Tuesday the privacy concerns that have
sparked government inquiries into how the Internet advertising agency gathers personal information are industry-wide issues.
DoubleClick, which places advertising banners on Web sites and keeps track of who views them, has become the target of inquiries by attorneys
general in New York and Michigan as well as the Federal Trade Commission.
Its acquisition of direct marketing research firm Abacus Direct gives DoubleClick access to a large database of offline customer information, which
has alarmed some privacy advocates.
"What we are focused on is nonsensitive marketing information," O`Connor said at the SiliconAlley2000 conference, adding that DoubleClick
supports privacy advocates who want to end distribution of sensitive information, such as information related to health or children.
"No one wants to use information versus consumers. Those kinds of practices should be stopped," he added.
The company has been a market darling since its February 1998 initial public offering of $4.25, after being adjusted for splits. Its shares were last up
2-1/16 at 90-5/8.
"We are getting industry support because they realize it`s not about DoubleClick but rather about the industry," O`Connor said.
"It`s a Catch 22. We have been an extraordinary successful company and for these very reasons when people think Internet advertising, they think
DoubleClick. It`s our job as an industry leader," he said about facing the privacy controversy. "I think people are beginning to realize the other side of
the issue. Without Internet advertising, there is no Internet."
DoubleClick`s focus on targeted advertising has created a privacy paradox of sorts, O`Connor said. But he added that he thinks most consumers are
comfortable with it.
"If there is something to exchange (the information) for, consumers are more than willing to give it up. But it`s important that the relationship is
trust-based and you have to give them notice and an opt-out option," O`Connor said. "For the Internet to remain free, advertising has to work. The
beauty of the Internet is that information is available to the world for free."
As for the future of the Internet, O`Connor said he is a believer in divergence rather than convergence and fragmentation versus consolidation.
He said wireless is going to be a huge opportunity, but he does not think it`s going to be the main computing tool because users won`t want to sacrifice
mobility and size for functionality. The role of advertising in wireless devices will be limited in the near-term.
The focus on consumer-to-business will also gain importance in the market and will make filtered content a larger force and editors less important.
Personalized advertising and recommendation engines will also become important over the next couple of years, he added.
Separately, the company said it completed an $85 million investment in ValueClick Inc., which provides performance-based Internet advertising
products.
By Reshma Kapadia,
NEW YORK, Feb 29 (Reuters) - DoubleClick Inc. <DCLK.O> Chief Executive Kevin O`Connor said Tuesday the privacy concerns that have
sparked government inquiries into how the Internet advertising agency gathers personal information are industry-wide issues.
DoubleClick, which places advertising banners on Web sites and keeps track of who views them, has become the target of inquiries by attorneys
general in New York and Michigan as well as the Federal Trade Commission.
Its acquisition of direct marketing research firm Abacus Direct gives DoubleClick access to a large database of offline customer information, which
has alarmed some privacy advocates.
"What we are focused on is nonsensitive marketing information," O`Connor said at the SiliconAlley2000 conference, adding that DoubleClick
supports privacy advocates who want to end distribution of sensitive information, such as information related to health or children.
"No one wants to use information versus consumers. Those kinds of practices should be stopped," he added.
The company has been a market darling since its February 1998 initial public offering of $4.25, after being adjusted for splits. Its shares were last up
2-1/16 at 90-5/8.
"We are getting industry support because they realize it`s not about DoubleClick but rather about the industry," O`Connor said.
"It`s a Catch 22. We have been an extraordinary successful company and for these very reasons when people think Internet advertising, they think
DoubleClick. It`s our job as an industry leader," he said about facing the privacy controversy. "I think people are beginning to realize the other side of
the issue. Without Internet advertising, there is no Internet."
DoubleClick`s focus on targeted advertising has created a privacy paradox of sorts, O`Connor said. But he added that he thinks most consumers are
comfortable with it.
"If there is something to exchange (the information) for, consumers are more than willing to give it up. But it`s important that the relationship is
trust-based and you have to give them notice and an opt-out option," O`Connor said. "For the Internet to remain free, advertising has to work. The
beauty of the Internet is that information is available to the world for free."
As for the future of the Internet, O`Connor said he is a believer in divergence rather than convergence and fragmentation versus consolidation.
He said wireless is going to be a huge opportunity, but he does not think it`s going to be the main computing tool because users won`t want to sacrifice
mobility and size for functionality. The role of advertising in wireless devices will be limited in the near-term.
The focus on consumer-to-business will also gain importance in the market and will make filtered content a larger force and editors less important.
Personalized advertising and recommendation engines will also become important over the next couple of years, he added.
Separately, the company said it completed an $85 million investment in ValueClick Inc., which provides performance-based Internet advertising
products.
Hallo,
ich hoffe, das ganze ist bald ausgestanden. zumindest die Analysten halten DCLK die stange, heute DLJ mit Kursziel 175 Dollar.
Wait and see ...
german
ich hoffe, das ganze ist bald ausgestanden. zumindest die Analysten halten DCLK die stange, heute DLJ mit Kursziel 175 Dollar.
Wait and see ...
german
AltaVista, Kozmo step back from DoubleClick - WSJ
NEW YORK, March 1 (Reuters) - AltaVista and Kozmo.com have distanced themselves from Internet advertising network DoubleClick Inc.
<DCLK.O> partly out of concerns about its handling of privacy issues, the Wall Street Journal said Wednesday. Search engine AltaVista, a CMGI
Inc. <CMGI.O> company, has limited the release of customer information to DoubleClick and other Web companies with which AltaVista has
content partnerships, while Internet home-delivery service Kozmo is speeding up steps to end its partnership with DoubleClick, the Journal said.
The moves are part of the fallout from consumer-privacy problems facing New York-based DoubleClick. Privacy activists charged the company`s
efforts to accumulate data about consumer Web-viewing habits are illegal.
The Federal Trade Commission recently began investigating the company`s practices. Michigan sued the company, accusing it of violating the state`s
consumer protection law.
DoubleClick Chief Executive Kivin O`Connor said on Tuesday the company supports privacy advocates who want to end distribution of sensitive
information such as that related to helath or children.
"We are getting industry support because they realise it`s not about Double-Click but rather about the industry," O`Connor said.
NEW YORK, March 1 (Reuters) - AltaVista and Kozmo.com have distanced themselves from Internet advertising network DoubleClick Inc.
<DCLK.O> partly out of concerns about its handling of privacy issues, the Wall Street Journal said Wednesday. Search engine AltaVista, a CMGI
Inc. <CMGI.O> company, has limited the release of customer information to DoubleClick and other Web companies with which AltaVista has
content partnerships, while Internet home-delivery service Kozmo is speeding up steps to end its partnership with DoubleClick, the Journal said.
The moves are part of the fallout from consumer-privacy problems facing New York-based DoubleClick. Privacy activists charged the company`s
efforts to accumulate data about consumer Web-viewing habits are illegal.
The Federal Trade Commission recently began investigating the company`s practices. Michigan sued the company, accusing it of violating the state`s
consumer protection law.
DoubleClick Chief Executive Kivin O`Connor said on Tuesday the company supports privacy advocates who want to end distribution of sensitive
information such as that related to helath or children.
"We are getting industry support because they realise it`s not about Double-Click but rather about the industry," O`Connor said.
Ich habe gestern, nachdem ich nochmal in Ruhe über dieses Thema
nachgedacht hatte, alle Cookies gelöscht. Diese Aktion werde ich
jetzt regelmäßig, mindestens einmal pro Woche, durchführen.
Da ich nicht davon ausgehe, daß ich der einzige bin, der sich
Gedanken dieser Art gemacht hat, habe ich mich schon gestern
gefragt, wann sich den wohl die ersten Kunden von Doubleclick
von den Praktiken distanzieren werden.
Die Kunden haben sicherlich schon, davon gehe ich aufgrund
der Beobachtung meines eigenen Verhatens aus, festgestellt,
daß die User weniger bereitwillig ihre persönlichen Daten
auf WebSites bekannt geben.
Ich vermute, daß über dieses Thema, vorallem über die offene
Distanzierung von solchen Praktiken, in der nächsten Zeit
noch oft zu lesen sein wird.
mfg
investor_007
nachgedacht hatte, alle Cookies gelöscht. Diese Aktion werde ich
jetzt regelmäßig, mindestens einmal pro Woche, durchführen.
Da ich nicht davon ausgehe, daß ich der einzige bin, der sich
Gedanken dieser Art gemacht hat, habe ich mich schon gestern
gefragt, wann sich den wohl die ersten Kunden von Doubleclick
von den Praktiken distanzieren werden.
Die Kunden haben sicherlich schon, davon gehe ich aufgrund
der Beobachtung meines eigenen Verhatens aus, festgestellt,
daß die User weniger bereitwillig ihre persönlichen Daten
auf WebSites bekannt geben.
Ich vermute, daß über dieses Thema, vorallem über die offene
Distanzierung von solchen Praktiken, in der nächsten Zeit
noch oft zu lesen sein wird.
mfg
investor_007
mir ist im obigen Posting ein Fehler unterlaufen,
es fehlt das Wort "nicht":
-----------
Da ich nicht davon ausgehe, daß ich nicht der einzige bin, der sich
Gedanken dieser Art gemacht hat, habe ich mich schon gestern
gefragt, wann sich den wohl die ersten Kunden von Doubleclick
von den Praktiken distanzieren werden.
-----------
es fehlt das Wort "nicht":
-----------
Da ich nicht davon ausgehe, daß ich nicht der einzige bin, der sich
Gedanken dieser Art gemacht hat, habe ich mich schon gestern
gefragt, wann sich den wohl die ersten Kunden von Doubleclick
von den Praktiken distanzieren werden.
-----------
Statement From Kevin O`Connor, CEO of DoubleClick <DCLK.O>
Statement From Kevin O`Connor, CEO of
DoubleClick
NEW YORK--(BUSINESS WIRE)--March 2, 2000--"Over the past few
weeks, DoubleClick (Nasdaq: DCLK) has been at the center of the
Internet privacy controversy. During this time, we have met and
listened to hundreds of consumers, privacy advocates, customers,
government officials and industry leaders about these issues. The
overwhelming point of contention has been under what circumstances
names can be associated with anonymous user activity across Web
sites."
"It is clear from these discussions that I made a mistake by
planning to merge names with anonymous user activity across Web sites
in the absence of government and industry privacy standards."
"Let me be clear: DoubleClick has not implemented this plan, and
has never associated names, or any other personally identifiable
information, with anonymous user activity across Web sites."
"We commit today, that until there is agreement between
government and industry on privacy standards, we will not link
personally identifiable information to anonymous user activity across
Web sites."
"This action does not affect our core business activity. It means
we are going to await clear industry standards before we decide the
future direction of a number of new products. We will continue to
expand our successful media, technology, e-mail and offline data
businesses. We will also continue to abide by common industry
practices in building anonymous profiles for ad targeting."
"Since founding DoubleClick only 4 years ago, our company has
grown to 1,800 employees with more than 7,000 customers worldwide. We
are helping thousands of companies become successful in our new
economy. I`m proud of DoubleClick`s leadership as an innovator in
improving the value of Internet advertising and keeping the Internet
free for consumers. Taking risks, inventing new products and services,
and correcting mistakes is a sign of responsible leadership."
"Creating industry policies involving something so incredibly
important to our global economy and individuals is not something to be
taken lightly. We all agree on the goals: keep the Internet free while
protecting consumer privacy. It is now time for industry, consumers
and government to develop a clear set of guidelines that help create a
healthy, free Internet while protecting the privacy of all consumers."
About DoubleClick Inc.
DoubleClick Inc. (www.doubleclick.net) is a leading provider of
comprehensive global Internet advertising solutions for marketers and
Web publishers. Combining technology, media and data expertise,
DoubleClick centralizes planning, execution, control, tracking and
reporting for online media campaigns. DoubleClick Inc. has Global
headquarters in New York City and maintains over 30 offices around the
world.
--30--ac/ny*
CONTACT: Jennifer Blum, 212/381-5705
jblumdoubleclick.net
or
Abernathy MacGregor Group
Adam Miller, 212/371-5999 (Investors)
Today`s News On The Net - Business Wire`s full file on the Internet
with Hyperlinks to your home page.
URL: http://www.businesswire.com
(c) 1998 Business Wire
Statement From Kevin O`Connor, CEO of
DoubleClick
NEW YORK--(BUSINESS WIRE)--March 2, 2000--"Over the past few
weeks, DoubleClick (Nasdaq: DCLK) has been at the center of the
Internet privacy controversy. During this time, we have met and
listened to hundreds of consumers, privacy advocates, customers,
government officials and industry leaders about these issues. The
overwhelming point of contention has been under what circumstances
names can be associated with anonymous user activity across Web
sites."
"It is clear from these discussions that I made a mistake by
planning to merge names with anonymous user activity across Web sites
in the absence of government and industry privacy standards."
"Let me be clear: DoubleClick has not implemented this plan, and
has never associated names, or any other personally identifiable
information, with anonymous user activity across Web sites."
"We commit today, that until there is agreement between
government and industry on privacy standards, we will not link
personally identifiable information to anonymous user activity across
Web sites."
"This action does not affect our core business activity. It means
we are going to await clear industry standards before we decide the
future direction of a number of new products. We will continue to
expand our successful media, technology, e-mail and offline data
businesses. We will also continue to abide by common industry
practices in building anonymous profiles for ad targeting."
"Since founding DoubleClick only 4 years ago, our company has
grown to 1,800 employees with more than 7,000 customers worldwide. We
are helping thousands of companies become successful in our new
economy. I`m proud of DoubleClick`s leadership as an innovator in
improving the value of Internet advertising and keeping the Internet
free for consumers. Taking risks, inventing new products and services,
and correcting mistakes is a sign of responsible leadership."
"Creating industry policies involving something so incredibly
important to our global economy and individuals is not something to be
taken lightly. We all agree on the goals: keep the Internet free while
protecting consumer privacy. It is now time for industry, consumers
and government to develop a clear set of guidelines that help create a
healthy, free Internet while protecting the privacy of all consumers."
About DoubleClick Inc.
DoubleClick Inc. (www.doubleclick.net) is a leading provider of
comprehensive global Internet advertising solutions for marketers and
Web publishers. Combining technology, media and data expertise,
DoubleClick centralizes planning, execution, control, tracking and
reporting for online media campaigns. DoubleClick Inc. has Global
headquarters in New York City and maintains over 30 offices around the
world.
--30--ac/ny*
CONTACT: Jennifer Blum, 212/381-5705
jblumdoubleclick.net
or
Abernathy MacGregor Group
Adam Miller, 212/371-5999 (Investors)
Today`s News On The Net - Business Wire`s full file on the Internet
with Hyperlinks to your home page.
URL: http://www.businesswire.com
(c) 1998 Business Wire
DOUBLECLICK <DCLK.O> SAYS IT WON`T LINK PERSONAL INFORMATION TO
WEB ACTIVITY
NEW YORK, March 2 (Reuters) - DoubleClick Inc.,<DCLK.O> the Internet advertising firm whose methods for gathering personal data have come under
scrutiny, will hold off a plan to add people`s names and addresses to its ad tracking program until the government and industry agree on privacy standards, its CEO
said on Thursday.
DoubleClick, which places advertising banners on Web sites and keeps track of who views them, is facing inquiries by the Federal Trade Commission, as well as
the attorneys general of New York and Michigan. It has also alarmed some privacy advocates, who are concerned that its activities give its clients too much access
to personal information of unsuspecting Web users.
"We commit today, that until there is agreement between government and industry on privacy standards, we will not link personally identifiable information to
anonymous user activity across Web sites," DoubleClick Chief Executive Kevin O`Connor said in a statement issued by the company.
O`Connor admitted that he had "made a mistake by planning to merge names with anonymous user activity across Web sites," but emphasized that the company
had never implemented the plan.
He said the decision to hold off on implementation would not affect DoubleClick`s core business activity. "It means we are going to await clear industry standards
before we decide the future direction of a number of new products," he said.
In the meantime, he added, the company would "continue to abide by common industry practices in building anonymous profiles for ad targeting."
DoubleClick`s stock slipped 1/16 to 80-1/2 in midday trading on Nasdaq.
WEB ACTIVITY
NEW YORK, March 2 (Reuters) - DoubleClick Inc.,<DCLK.O> the Internet advertising firm whose methods for gathering personal data have come under
scrutiny, will hold off a plan to add people`s names and addresses to its ad tracking program until the government and industry agree on privacy standards, its CEO
said on Thursday.
DoubleClick, which places advertising banners on Web sites and keeps track of who views them, is facing inquiries by the Federal Trade Commission, as well as
the attorneys general of New York and Michigan. It has also alarmed some privacy advocates, who are concerned that its activities give its clients too much access
to personal information of unsuspecting Web users.
"We commit today, that until there is agreement between government and industry on privacy standards, we will not link personally identifiable information to
anonymous user activity across Web sites," DoubleClick Chief Executive Kevin O`Connor said in a statement issued by the company.
O`Connor admitted that he had "made a mistake by planning to merge names with anonymous user activity across Web sites," but emphasized that the company
had never implemented the plan.
He said the decision to hold off on implementation would not affect DoubleClick`s core business activity. "It means we are going to await clear industry standards
before we decide the future direction of a number of new products," he said.
In the meantime, he added, the company would "continue to abide by common industry practices in building anonymous profiles for ad targeting."
DoubleClick`s stock slipped 1/16 to 80-1/2 in midday trading on Nasdaq.
FOCUS-Doubleclick shelves plan to tag Web surfers
(Updates throughout, adds byline, pvs NEW YORK) By Dick Satran
SAN FRANCISCO, March 2 (Reuters) - Internet advertising firm DoubleClick Inc. <DCLK.O> on Thursday pulled back from a plan to identify
Web surfers on clients` sites, trying to defuse a growing controversy over privacy threats on the public network.
DoubleClick, which "serves" billions of ads to Web sites each day, has been scrutinized by state and federal regulators over how it uses data
compiled on visitors to the sites.
Consumer product marketers are eager to pay for the consumer information, and many sites compile anonymous data that can be used in reports
about their behavior on the Internet.
DoubleClick was the first Internet firm to propose giving names of anonymous surfers to marketers.
"We made a mistake about moving ahead with plans to merge names of anonymous user activity across Web sites in the absence of any government
and industry privacy standards," said Kevin O`Connor, chief executive officer of DoubleClick, saying the company will halt its plans to do so.
Privacy advocates applauded the move and said it could help establish the principle that individuals will not be identified on Web sites, possibly even
creating a basis for future regulation.
O`Connor said in a statement that the identification system was only at the planning stages, and his company has never named any anonymous Web
surfers and won`t do so now unless government and industry agrees to it.
"This is an important step for Internet privacy," said Center for Democracy and Technology Staff Counsel Deirdre Mulligan. "We have begun to turn
the tide."
DoubleClick set off alarms among privacy advocates last year with its $1.7 billion deal to acquire Abacus Direct, a Colorado-based direct marketing
concern that compiles data on individuals.
DoubleClick planned to combine the Abacus personal data with its "cookies," software codes assigned to anonymous Web surfers when they visit a
site.
By combining the cookies with Abacus`s data, DoubleClick would have been able to tell businesses names of consumers using specific sites.
"This plan really became a lightning rod down DoubleClick`s shirt and it a created a real firestorm," said Eric Olbiter of Schwab Washington Research
Group. "They had to remove the lightning rod -- and I think they have."
The Abacus acquisition had boosted DoubleClick`s market value by $4 billion, as investors grew excited over the lucrative revenues for data on
consumers spending habits and preferences, Olbiter said. But in recent days, as the controversy raged, its stock declined sharply, eliminating virtually
all of the gain.
"The poor stockholders paid a premium for Abacus direct and now the whole idea of synergy between the units is out the window," said Richard
Smith, a Cambridge, Mass.-based privacy consultant who has issued a number of reports on DoubleCLick.
Smith said that the end result, though, will be to strengthen consumers` trust in using the Internet and advertiser support of the medium.
Investors saw the resolution of the problem as a plus for DoubleClick, whose stock closed up 2-14/16 at 83-7/16.
DoubleClick faced inquiries by the Federal Trade Commission, as well as the attorneys general of New York and Michigan, over its profiling
practices and the proposed identification system.
"We commit today, that until there is agreement between government and industry on privacy standards, we will not link personally identifiable
information to anonymous user activity across Web sites," O`Connor said.
The decision to hold off on implementation would not affect DoubleClick`s core business activity, O`Connor said. "It means we are going to await
clear industry standards before we decide the future direction of a number of new products," he added.
O`Connor, in an interview, said that the company plans to continue with some way of coming up with marketing profiles that use consumer`s names in
a way that won`t offend privacy groups. This means examining "what can be done under what circumstances, with (consumer) choice and notice (by
the Web site)," he said.
"I believe everyone agrees we can do this in a self-regulatory environment."
But privacy advocate Mulligan said that the issue could become a topic of either regulatory action or legislation in the year ahead.
"This really just the start of a discussion," said Mulligan. "What`s been established is that DoubleClick is not going to go forward until the rules have
been established, by government and industry, with consumers the most important part of the discussion."
(Updates throughout, adds byline, pvs NEW YORK) By Dick Satran
SAN FRANCISCO, March 2 (Reuters) - Internet advertising firm DoubleClick Inc. <DCLK.O> on Thursday pulled back from a plan to identify
Web surfers on clients` sites, trying to defuse a growing controversy over privacy threats on the public network.
DoubleClick, which "serves" billions of ads to Web sites each day, has been scrutinized by state and federal regulators over how it uses data
compiled on visitors to the sites.
Consumer product marketers are eager to pay for the consumer information, and many sites compile anonymous data that can be used in reports
about their behavior on the Internet.
DoubleClick was the first Internet firm to propose giving names of anonymous surfers to marketers.
"We made a mistake about moving ahead with plans to merge names of anonymous user activity across Web sites in the absence of any government
and industry privacy standards," said Kevin O`Connor, chief executive officer of DoubleClick, saying the company will halt its plans to do so.
Privacy advocates applauded the move and said it could help establish the principle that individuals will not be identified on Web sites, possibly even
creating a basis for future regulation.
O`Connor said in a statement that the identification system was only at the planning stages, and his company has never named any anonymous Web
surfers and won`t do so now unless government and industry agrees to it.
"This is an important step for Internet privacy," said Center for Democracy and Technology Staff Counsel Deirdre Mulligan. "We have begun to turn
the tide."
DoubleClick set off alarms among privacy advocates last year with its $1.7 billion deal to acquire Abacus Direct, a Colorado-based direct marketing
concern that compiles data on individuals.
DoubleClick planned to combine the Abacus personal data with its "cookies," software codes assigned to anonymous Web surfers when they visit a
site.
By combining the cookies with Abacus`s data, DoubleClick would have been able to tell businesses names of consumers using specific sites.
"This plan really became a lightning rod down DoubleClick`s shirt and it a created a real firestorm," said Eric Olbiter of Schwab Washington Research
Group. "They had to remove the lightning rod -- and I think they have."
The Abacus acquisition had boosted DoubleClick`s market value by $4 billion, as investors grew excited over the lucrative revenues for data on
consumers spending habits and preferences, Olbiter said. But in recent days, as the controversy raged, its stock declined sharply, eliminating virtually
all of the gain.
"The poor stockholders paid a premium for Abacus direct and now the whole idea of synergy between the units is out the window," said Richard
Smith, a Cambridge, Mass.-based privacy consultant who has issued a number of reports on DoubleCLick.
Smith said that the end result, though, will be to strengthen consumers` trust in using the Internet and advertiser support of the medium.
Investors saw the resolution of the problem as a plus for DoubleClick, whose stock closed up 2-14/16 at 83-7/16.
DoubleClick faced inquiries by the Federal Trade Commission, as well as the attorneys general of New York and Michigan, over its profiling
practices and the proposed identification system.
"We commit today, that until there is agreement between government and industry on privacy standards, we will not link personally identifiable
information to anonymous user activity across Web sites," O`Connor said.
The decision to hold off on implementation would not affect DoubleClick`s core business activity, O`Connor said. "It means we are going to await
clear industry standards before we decide the future direction of a number of new products," he added.
O`Connor, in an interview, said that the company plans to continue with some way of coming up with marketing profiles that use consumer`s names in
a way that won`t offend privacy groups. This means examining "what can be done under what circumstances, with (consumer) choice and notice (by
the Web site)," he said.
"I believe everyone agrees we can do this in a self-regulatory environment."
But privacy advocate Mulligan said that the issue could become a topic of either regulatory action or legislation in the year ahead.
"This really just the start of a discussion," said Mulligan. "What`s been established is that DoubleClick is not going to go forward until the rules have
been established, by government and industry, with consumers the most important part of the discussion."
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