The DoubleClick Controversy
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Case Details:
Case Code : ITSY014
Case Length : 11 Pages
Period : 1995-2001
Pub Date : 2001
Teaching Note : Available
Organization : Doubleclick.com
Industry : Internet Commerce
Countries : USA
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Background Note
DoubleClick was started as 'Internet Advertising
Network' (IAN) in Atlanta, Georgia by two software professionals
Kevin O'Connor (Connor) and Dwight Merriman in 1995...
The Controversy
To deliver targeted ads, DoubleClick used an advertisement
management technology, DART (Dynamic Advertising Reporting and Targeting). DART
delivered ads to web pages based on what the user was searching for or
information already known about the consumer. DART technology thus targeted and
delivered ads to web users based on pre-selected criteria, including the website
category, time of day and regional geographic location.' If the user responded
by 'clicking on the ad,' DoubleClick servers directed him to the advertisers'
website for more information... |
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The Debate
The use of customer databases has become an integral part of building better
customer relationships through electronic commerce...
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The Future
Amidst growing public outcry, DoubleClick announced a
five-point initiative to silence its critics. The company released
full-page advertisements in major newspapers, announcing various
measures to deal with the allegations leveled against it. DoubleClick
decided to appoint a privacy officer and a privacy advisory board and
strengthen the mechanism to let people opt out of its services through
notification by a 'pop-up' box whenever personal data was sought from
them. DoubleClick also said that it would do businesses only with
companies that had strict privacy policies... |
Exhibits
Exhibit I: Doubleclick Share Price Movement - (March 1999 to
February 2002)
Exhibit II: Double Click - Privacy Policy
Exhibit III: Doubleclick - Financial Statements
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