Doubleclick Inc - Offered Real-time Targeting, Expanded Through Acquisitions In 1999, Privacy Concerns Dominated 2000, Continued To Expand In 2000

DoubleClick Inc. is a pioneer in providing Internet advertising services, both to those seeking to advertise on the World Wide Web and to Web publishers who want to attract advertisers. Founded in January 1996 in New York City, DoubleClick created the first Internet advertising network, a group of Web sites that the firm represented to advertisers. It was a model that other Internet advertising agencies would emulate. Over the course of its first five years, DoubleClick expanded the network of Web sites it represented, segmented it to match the needs of Internet advertisers, and reorganized it to reflect changing market conditions. In March 2001 the company announced it would offer two distinct networks in the United States. One, the DoubleClick Brand Network, consisted of branded Web sites that had substantial brand recognition, a significant amount of traffic, and a marketable inventory of advertising opportunities. The other network was the DoubleClick Audience Network, which emphasized audience reach, targeting, and optimization in specific vertical categories. Outside of the United States, DoubleClick would continue to offer networks based on the local content of each country.

Another innovation credited to DoubleClick is its proprietary Dynamic Advertising Reporting and Tracking (DART) software technology, which enables the company to determine within 15 milliseconds which banner ad should be presented to the current user, based on pre-selected criteria. In order for DART to match ads to target audiences within milliseconds, it uses the controversial "cookie" technology that creates a user profile and monitors an Internet browser's movements through Web sites in DoubleClick's media network. Using this technology, DoubleClick created a database of user profiles that enabled it to better target banner ads to users who visited Web sites in the DoubleClick network.

DoubleClick's information-gathering practices put it at the center of Internet privacy concerns, and privacy advocates have closely monitored how DoubleClick obtains and uses information about Internet users. At issue is the fact that cookies obtain information about a user's hardware and software as well as their Internet connections without obtaining permission. Privacy advocates are most concerned that the technology could be used to obtain confidential information against the wishes of individual users. Another key issue involves combining online and offline information to create even more comprehensive user profiles that might include individual names, addresses, and telephone numbers. DoubleClick has maintained that it uses the information in aggregate form only, and does not reveal information on an individual basis. In March 2001 the Federal Trade Commission (FTC) ended its investigation into DoubleClick's privacy practices without saying that any violations had or had not occurred.