1. DoubleClick and Internet Privacy Craig Lizotte

2. Mission Statement DoubleClick is your partner in achieving success with digital marketing—whether you are a web publisher, marketer or advertising agency. We are a reliable, experienced, innovative partner who can help you capitalize on the opportunities that digital media bring, and meet the challenges they present. DoubleClick is your partner in achieving success with digital marketing—whether you are a web publisher, marketer or advertising agency. We are a reliable, experienced, innovative partner who can help you capitalize on the opportunities that digital media bring, and meet the challenges they present. If you’re a marketer or agency, our people work to be sure you get the best return on your advertising dollar. If you’re a web publisher, they partner with you to increase revenues. If you’re a marketer or agency, our people work to be sure you get the best return on your advertising dollar. If you’re a web publisher, they partner with you to increase revenues. Our integrated products work together to simplify and streamline your advertising sales, buying, operations and billing. DoubleClick’s industry-leading reporting systems enable you to stay on top of campaign performance at all times, across all digital media. It all combines to let you get on with what you do best. Our integrated products work together to simplify and streamline your advertising sales, buying, operations and billing. DoubleClick’s industry-leading reporting systems enable you to stay on top of campaign performance at all times, across all digital media. It all combines to let you get on with what you do best.

3. Company Overview DoubleClick was the industry leader in Internet advertising. They tracked web activity with cookies on their 1,500 website network, and placed banner adds on 11,000 sites. DoubleClick was the industry leader in Internet advertising. They tracked web activity with cookies on their 1,500 website network, and placed banner adds on 11,000 sites. They target advertised users of their website network by placing cookies on their hard drive that would monitor browsing behavior. They target advertised users of their website network by placing cookies on their hard drive that would monitor browsing behavior.

4. History Kevin O’Conner founded DoubleClick in 1996. Kevin O’Conner founded DoubleClick in 1996. David Rosenblatt joins the management team in 1997. David Rosenblatt joins the management team in 1997. 1999 Forester Research projected online advertising to be 33 billion in 2004. 1999 Forester Research projected online advertising to be 33 billion in 2004. In 2000 DoubleClick had: In 2000 DoubleClick had: 1,800 employees. 1,800 employees. 7,000 customers. 7,000 customers. Offices in 30 countries. Offices in 30 countries. Market capitalization of 10 billion. Market capitalization of 10 billion. Stuart Frankel Senior Vice President joins DoubleClick in 2000. Stuart Frankel Senior Vice President joins DoubleClick in 2000. February 2000 USA Today published, that DoubleClick’s plans to merge with Abacus. February 2000 USA Today published, that DoubleClick’s plans to merge with Abacus. DoubleClick partners with goggle in 2007. DoubleClick partners with goggle in 2007.

5. Primary Stakeholders Government: Congress and Legislation. Government: Congress and Legislation. Federal Trades Commission (FTC). Federal Trades Commission (FTC). Center for Democracy and Technology (CDT). Center for Democracy and Technology (CDT). TRUSTe TRUSTe Marketers Marketers Venture Capitalist Venture Capitalist Consumers Consumers

6. Management Team Kevin Ryan – President Kevin Ryan – President Kevin O’Conner - Founder Kevin O’Conner - Founder David Rosenblatt - CEO David Rosenblatt - CEO

7. Management Team Stephanie Abramson - General Counsel, the head of legal and privacy related matters for DoubleClick. Stephanie Abramson - General Counsel, the head of legal and privacy related matters for DoubleClick. Stuart Frankel - Senior Vice President. Stuart Frankel - Senior Vice President. Ben Regensburger - President, DoubleClick International. Ben Regensburger - President, DoubleClick International. Charlie Dickson – CFO Charlie Dickson – CFO

8. eCommerce Initiative Click-stream is the process of collecting, analyzing, and reporting data such as: order of web pages visited and mouse clicks visitors make. Click-stream is the process of collecting, analyzing, and reporting data such as: order of web pages visited and mouse clicks visitors make. The information collected was identified by an ID number assigned to a cookie on the users computer. The information collected was identified by an ID number assigned to a cookie on the users computer. User information would remain anonymous, and not be linked to personal information unless the user agreed. User information would remain anonymous, and not be linked to personal information unless the user agreed. (Agreements were broken during their attempt to merge with Abacus.)

9. DoubleClick’s Strategy to Merge with Abacus DoubleClick’s strategy was to integrate their database with Abacus’s offline database. It could then better target internet users by knowing their buying and browser behavior. DoubleClick’s strategy was to integrate their database with Abacus’s offline database. It could then better target internet users by knowing their buying and browser behavior. It formed Abacus online. It formed Abacus online. Websites would identify users by name. Websites would identify users by name. Click-stream information would be combined with personal information. Click-stream information would be combined with personal information. Information would be collected by purchases, surveys and drawings. Information would be collected by purchases, surveys and drawings. Users would have the opportunity to opt-out. Users would have the opportunity to opt-out. Users could choose to receive targeted advertisements. Users could choose to receive targeted advertisements. Information collected would only benefit the consumer. Information collected would only benefit the consumer. No intention of selling information to 3rd parties. No intention of selling information to 3rd parties. Would not ask information about medical, financial or, sexual browsing or transactions or children’s browsing. Would not ask information about medical, financial or, sexual browsing or transactions or children’s browsing. Getting the right ad to the right person at the right time. Getting the right ad to the right person at the right time. Instead of target marketing the computer, they could now target the individual consumer. Since there can be many users per computer. Instead of target marketing the computer, they could now target the individual consumer. Since there can be many users per computer.

10. Abacus Abacus was the leader in collecting information from catalog purchases. It had a five year buying profile of 88 million households. Abacus was the leader in collecting information from catalog purchases. It had a five year buying profile of 88 million households. Abacus collected Personal information such as: Abacus collected Personal information such as: Name Name Address Address Phone number Phone number Credit card numbers Credit card numbers Income Income Purchases history Purchases history

11. Industry and Market In 2000 had a market capitalization of $10 Billion. In 2000 had a market capitalization of $10 Billion. 1 st Quarter revenues went up 179% from the previous quarter at $110 million with a gross profit of $53 million. 1 st Quarter revenues went up 179% from the previous quarter at $110 million with a gross profit of $53 million. Forester Research predicted that online advertising would increase from $3.3 Billion in 1999 to $33 Billion in 2004. Forester Research predicted that online advertising would increase from $3.3 Billion in 1999 to $33 Billion in 2004.

12. Privacy Laws The U.S. Constitutions closest privacy law was the Fourth Amendment, which restricted searches and seizures by government. The U.S. Constitutions closest privacy law was the Fourth Amendment, which restricted searches and seizures by government. 1974 Internet Privacy Act - Restricted information gathered for one purpose to be used for another purpose or shared with another government agency. 1974 Internet Privacy Act - Restricted information gathered for one purpose to be used for another purpose or shared with another government agency. 1988 Video Privacy Protection - Prohibited video tape service providers from disclosing information about rentals or request from individuals. 1988 Video Privacy Protection - Prohibited video tape service providers from disclosing information about rentals or request from individuals. 1994 Drivers License Privacy Protection Act - Prohibited states from selling deriver’s license information. 1994 Drivers License Privacy Protection Act - Prohibited states from selling deriver’s license information.

13. Privacy Laws 1994 Fair Credit Card Reporting Act - Regulated the disclosure of credit application data and credit histories. 1994 Fair Credit Card Reporting Act - Regulated the disclosure of credit application data and credit histories. 1994 Electronic Communications Privacy Act - Prohibited unauthorized access to e-mail, and other statutes prohibited unauthorized wiretaps. 1994 Electronic Communications Privacy Act - Prohibited unauthorized access to e-mail, and other statutes prohibited unauthorized wiretaps. 1999 Financial Services Modernization Act - Limited disclosure of nonpublic personal information to nonaffiliated third parties unless disclosure and opt-out requirements were met. 1999 Financial Services Modernization Act - Limited disclosure of nonpublic personal information to nonaffiliated third parties unless disclosure and opt-out requirements were met. 1999 Children’s Online Privacy Protection Act – Prohibited collecting information from children under 13 unless parents consent. 1999 Children’s Online Privacy Protection Act – Prohibited collecting information from children under 13 unless parents consent. The FTC decided they would not regulate internet privacy, so they established an advisory Committee on Online Access and Security. The FTC decided they would not regulate internet privacy, so they established an advisory Committee on Online Access and Security.

14. Controversy Because Abacus has a database with personal information, the idea of them joining with DoubleClick was a bad idea because, they specified in their contract they would not collect personal information unless the user consented. Because Abacus has a database with personal information, the idea of them joining with DoubleClick was a bad idea because, they specified in their contract they would not collect personal information unless the user consented. There was fear that DoubleClick would link the databases. There was fear that DoubleClick would link the databases. DoubleClick canceled its plan to merge with Abacus’s database. Now they had to come up with a strategy to gain pubic confidence back and remain in business. DoubleClick canceled its plan to merge with Abacus’s database. Now they had to come up with a strategy to gain pubic confidence back and remain in business.

15. Online Advertising The internet is free because of online advertising. The internet is free because of online advertising. TV, Radio and Newspapers were funded by advertising. TV, Radio and Newspapers were funded by advertising. A pole 70% of people said they were aware. A pole 70% of people said they were aware. 2/3 said they liked personalized information. 2/3 said they liked personalized information. 90% said they wanted control of how the information was used. 90% said they wanted control of how the information was used.

16. TRUSTe TRUSTe is a nonprofit organization that certified the privacy of a website If: TRUSTe is a nonprofit organization that certified the privacy of a website If: 1) Adoption and implementation of privacy policy. 1) Adoption and implementation of privacy policy. 2) Notice and disclosure. 2) Notice and disclosure. 3) Choice and consent. 3) Choice and consent. 4) Date security and quality access to personal information. 4) Date security and quality access to personal information.

17. Privacy Concerns Because privacy policies could be changed at anytime, privacy activists became suspicious. Because privacy policies could be changed at anytime, privacy activists became suspicious. Companies could violate their policies without detection. Companies could violate their policies without detection. Click-stream data was invisible to users. Most of them were not aware they were being tracked, so they didn’t know they had to opt-out. Click-stream data was invisible to users. Most of them were not aware they were being tracked, so they didn’t know they had to opt-out. Consumers were tracked over and over without having a relationship with the company. Consumers were tracked over and over without having a relationship with the company. It was ok for Amazon to use this technology because customers had a relationship with them. It was ok for Amazon to use this technology because customers had a relationship with them.

18. Privacy Concerns The Center of Democracy and Technology (CDT) began to educate Internet users, and encourage them to write letters to DoubleClick concerning their policies. The Center of Democracy and Technology (CDT) began to educate Internet users, and encourage them to write letters to DoubleClick concerning their policies. CDT provided an opt-out option on websites within the network. CDT provided an opt-out option on websites within the network. Cookies could be turned off in the internet options on the browser. Cookies could be turned off in the internet options on the browser.

19. Value to the Consumer Customizing advertisements based on the user’s interests. Customizing advertisements based on the user’s interests. Cookies would greet the user by name, customized a personalized page, and remember their password if specified for websites such as Amazon and e-mail sites. Cookies would greet the user by name, customized a personalized page, and remember their password if specified for websites such as Amazon and e-mail sites.

20. Value Capture Spend less on advertising. Spend less on advertising. More efficient (shot in the dark) More efficient (shot in the dark) 50%-100% higher then untargeted bulk advertising. 50%-100% higher then untargeted bulk advertising. If Click-stream combined with Abacus would increase targeted effectiveness even more. If Click-stream combined with Abacus would increase targeted effectiveness even more.

21. Business Intelligence The analysis from click-stream can be used to make predictions with business intelligence applications. The analysis from click-stream can be used to make predictions with business intelligence applications.

22. DSIR Target marketing was a more efficient way to advertise. If everyone was doing target marketing, they were making more money. By not implementing target marketing strategy would result in fewer sales then competitors. Target marketing was a more efficient way to advertise. If everyone was doing target marketing, they were making more money. By not implementing target marketing strategy would result in fewer sales then competitors. Markets change continuously. Market research helps you stay ahead of competition. Markets change continuously. Market research helps you stay ahead of competition. Competitors of sites who used click-stream would use target marketing and would have the advantage over competitors not using click-stream. Competitors of sites who used click-stream would use target marketing and would have the advantage over competitors not using click-stream.

23. Competitive Risk Privacy Laws Privacy Laws Software that made users anonymous and masked their ID: Software that made users anonymous and masked their ID: Webroot.com Webroot.com TopClick International TopClick International Anonymizer.com Anonymizer.com Zero-Knowledge Zero-Knowledge Privacy Preference Protection (P3P) software plug allowed users to specify what information they wanted to give. Privacy Preference Protection (P3P) software plug allowed users to specify what information they wanted to give.

24. Missed Opportunities Merging with Abacus. Merging with Abacus. They could have just sold software to companies such as Amazon so the company’s could do their own target marketing. They could have just sold software to companies such as Amazon so the company’s could do their own target marketing. Double Click’s database was better because there was a larger pool of data than there would be from individual sites. Double Click’s database was better because there was a larger pool of data than there would be from individual sites. With a larger pool of data, better targeting could be used to users browsing on competitive sites. With a larger pool of data, better targeting could be used to users browsing on competitive sites. Sell P3P software. Sell P3P software.