DoubleClick. Court Cunningham Senior Vice President, Marketing Automation. May 21, 2004 Investor Presentation. plan. execute.

Transcription

1 DoubleClick Court Cunningham Senior Vice President, Marketing Automation May 21, 2004 Investor Presentation plan execute analyze We Make Marketing Work Better 2003 DoubleClick Inc. All Rights Reserved. May 21, 2004

2 Forward Looking Statements This presentation contains forward-looking statements including earnings and revenue projections and future plans. The results or events predicted in these statements may vary materially from actual results. Factors that could cause actual events or results to differ from expectations include: lack of growth or decline in online advertising and marketing, intense competition in our industry, integration failures, changes in government regulation, operational failures and other risks that are contained in our SEC filings; including our most recent report on Form 10-Q. Forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we may choose not to do so even if our estimates change. We will also refer to certain non-gaap financial measures in this presentation. The non-gaap financial information is provided as a compliment to results provided in accordance with GAAP and management uses this information in analyzing the progress of the business. Please see the DCLK earnings press release dated April 15, 2004, for a reconciliation of EBITDA* to GAAP net income. Please see the Form 8-K filed on April 15, 2004 by the Company with the SEC for a discussion of why the Company believes EBITDA is a useful financial measure to investors and how management uses it. 2 *As presented herein.

3 Agenda Current Marketing Challenges DoubleClick Solutions Marketing Automation Solutions Marketing Automation Financials Takeaways/Q&A: Marketing Automation Brief Overview of Performics Deal Takeaways/Q&A: DoubleClick 3

4 Current Marketing Challenges

5 The Current Marketing Environment Increasing the number of programs A large company will run between 4,000 and 10,000 marketing programs per year A large pharmaceutical company completed 210,000 marketing related work-tasks in Rollout programs with greater velocity (faster) For example, a major CPG company has had to reduce the turnaround time on direct mail programs by 30%. Difficulty managing deliverability of Marketing execution technologies are being introduced to more effectively deliver marketing messages 5

6 DoubleClick Solutions

7 DoubleClick s Marketing Solutions TECHSOLUTIONS DATA Online Advertising ASP and software Tools for ad management (web publisher & agency) Online media planning tool for agencies Rich media tools Marketing Automation delivery tools Enterprise Marketing Solutions Campaign Management Marketing Resource Management Web analytics tool Data Solutions Catalog Customer Modeling Customer Data Management Solutions and Services 7

8 DoubleClick Marketing Solutions Maximize the efficiency and effectiveness of marketing by empowering marketers to: Manage marketing operations Improve marketing planning and targeting Deliver, monitor and optimize multi-channel marketing programs Manage and analyze marketing data Increase marketing insight 8

9 Plans for Supporting Multi-Channel Marketing Web Site Direct Mail Broadcast Print Common Marketing UI Project Management Workflow Content Management / DAM Budget and financial management Enterprise Marketing Platform Predictive Analytics Descriptive Analytics Optimization Response Management Campaign Reporting Database Management Services 9

10 Marketing Automation Solutions

11 Marketing Automation Products Marketing Website Analytics Campaign Management Marketing Resource Management DARTMail SiteAdvance Ensemble SmartPath 11

12 Solutions DoubleClick provides a flexible range of solutions and services that enable high performance results for retention, acquisition, branding and relationship strategies. DARTmail provides: Superior deliverability Enhanced targeting Contact frequency management Personalization Robust reporting Geo-targeting Real-time messaging 12

13 How Forrester Sees DARTmail 13

14 Case Study: DARTmail Crate & Barrel used DARTmail to promote a retail sales event to drive furniture store traffic and sales. Used DARTmail to geo-target customers in their database. Used DARTmail to measure the response of the campaign. Results Store sales increased by more than 50% over the previous week during the promotion. DARTmail campaign successfully drove store traffic and gave customers the opportunity to browse online before visiting stores. 14

15 Marketing Analytics Measure performance in and across channels to measure/improve ROI and increase performance SiteAdvance: website measurement and analysis that integrates user behavior with multichannel marketing data to optimize performance for online merchants 15

16 Case Study: SiteAdvance Flax Art & Design needed to increase sales on website, decrease drop-off rate site, & simplify purchases. SiteAdvance team analyzed entry points, online search and checkout usually main areas driving rate of abandonment and lost sales. Results Exit rate dropped from 71% to 40 % New visitor drop-off decreased 31.5%, which along with improved search words, led to 4.8% increase in annual revenue. 16

17 DoubleClick Enterprise Marketing Solutions DCLK will automate strategic planning, asset and collateral production, customer segmentation, and analysis across channels: MRM Project Management CM Automate list selection and query Workflow Content Management / DAM Budget and financial management Descriptive Analytics Response Management Integrated predictive modeling Measure performance Optimize based on offer for direct campaigns across , direct mail, and call centers Campaign Reporting 17

18 Campaign Management Improves Operating Efficiencies Total Campaign Cycle Time Campaign Run Time Number of Hours Before Ensemble With Ensemble Time (hours) 3:50:24 3:21:36 2:52:48 2:24:00 1:55:12 1:26:24 0:57:36 0:28:48 0:00:00 Suppr essions Ris k Segmentation Model Selection Household Selection Test Cells Before Cartridge 1:01:50 3:13:28 2:30:22 2:28:44 1:10:00 After Cartridge 0:26:57 0:08:49 0:03:27 0:06:38 0:36:03 18

19 SmartPath

20 MRM Supports Complete Marketing Operations Lifecycle Across all Program and Channels. Competitive Analysis Flexible Dynamic Reporting Objectives & Strategies Operational Measurement Tools Collaborative Planning Effectiveness Analysis Budget Development Financial and Closed loop reporting Predictive Analytics MRM TECHNOLOGY Program development Fulfillment management/ ad delivery Asset customization and dissemination of programs to relevant markets and segments Web Site Offer Management 20 Budget and project management Collaborative tools and workspaces Templates and guidelines Review & Approve

21 Case Study: SmartPath Client: Kohler Company has people and distribution operations on six continents, more than 40,000 employees worldwide, and a diverse family of businesses. Objective: Become proactive with their communication development process, not reactive to problems Solution: Kohler introduced SmartPath s MRM solutions into their worldwide operations in stages. Results: Eliminated paper-based project initiation Implemented electronic traffic control measures Eliminated redundancies and created more streamlined marketing process Kohler realized ROI 33% ahead of schedule 21

22 Strategic Rationale for SmartPath Deal 22 MRM is a fast growing and attractive opportunity DoubleClick customers asking for integration of planning and execution SmartPath extends DoubleClick s marketing automation platform by adding marketing operations capabilities and planning support for offline channels Our Plan: SmartPath becomes the operating system for marketing

23 23 SmartPath Customers

24 Marketers Focus Print Catalog Broadcast MONITOR EXECUTE Online advertising DEVELOP PLAN Events PLAN Website Marketer Outdoor Sales Organization Call Center Store/Branch Direct Mail 24

25 Where DoubleClick Added Value Broadcast Print MONITOR EXECUTE Catalog Online advertising Events DEVELOP PLAN PLAN Website Marketer Outdoor Sales Organization Direct Mail 25

26 Where DoubleClick Added Value Broadcast Print MONITOR EXECUTE Catalog Online advertising DEVELOP PLAN Events PLAN Website Marketer Outdoor Direct Mail Call Center Store/Branch 26

27 Where DoubleClick Adds Value: 2004 And Beyond* Broadcast Print Catalog MONITOR EXECUTE Online advertising DEVELOP PLAN Events PLAN PLAN Website Marketer Outdoor Sales Organization Call Center Store/Branch Direct Mail 27 *Including Response Manager, expected in 2005

28 Marketing Automation Financials

29 Marketing Automation Financials DARTmail, SmartPath, Ensemble and SiteAdvance Marketing Automation Revenue: $12.0 MM 1Q 2004 (Reported with the Tech Segment) Online Advertising Marketing Database Marketing Tech Segment Revenue: $45.3 MM 1Q 2004 Tech Segment Gross Margin: 70.4% 1Q 2004 History: Launch or Acquisition starting 1999 Marketing Analytics Primary Competitors: E.piphany, Digital Impact, Experian, & other single point players Strategic Services 29

30 More Multi-product TechSolutions Clients* DFP & SiteAdvance Kohler DARTmail, Ensemble & SiteAdvance Royal Caribbean SiteAdvance & DARTmail Crate & Barrel Intuit DARTmail & Ensemble Orbitz Terra Lycos 30% 25% 20% 15% 10% 5% 0% 1Q03 4Q03 1Q04 30 * Figures relate to North America clients

31 Looking Ahead We anticipate additional multi-product sales within Marketing Automation and with Data, Ad Management, and Performance-Based Marketing* We expect 20-30% Marketing Automation revenue growth for near-term All Marketing Automation products should show growth, with smaller products growing faster We believe that long-term Marketing Automation gross margins can be in the 70 s and operating margins in the 20 s 31 * Upon assumed completion of Performics acquisition.

32 Takeaways/Q&A: Marketing Automation

33 Takeaways DoubleClick offers technology and data solutions for marketers, advertisers, and web publishers for multiple mediums and across multiple channels DoubleClick s Marketing Automation solutions help marketers maximize their efficiency and effectiveness while improving their ROI Current investment in Marketing Automation products should lead to continued double-digit revenue growth and improving margins 33

34 Questions on Marketing Automation? 34

35 Brief Overview of Performics Deal from Kevin Ryan, DoubleClick s CEO

36 Performics Search Engine Marketing Affiliate Marketing

37 Performics At a Glance Only industry-leading provider of both search engine marketing and affiliate marketing technologies Performance-based Marketing Based in Chicago 120 employees customers Experienced management team Profitable, EBITDA positive, & expected to have 50% year-over-year revenue growth in 2004.

38 Solutions for Cataloguers, Marketers, Agencies, and Publishers Search Engine Marketing Provides the technology and support to clients to automate paid placement, paid inclusion and comparison shopping listings across multiple search providers Affiliate Marketing Drives incremental sales/actions for marketers by managing, tracking and reporting on marketer s offers across multiple affiliate sites. Helps publishers monetize inventory through sponsored links

39 Deal Details All-cash deal totaling $58 million, plus an earn-out of up to $7 million (for a potential total of $65 million). Expected to close by mid-june. Will expand DCLK s Search Marketing business & establish Affiliate marketing program. Performics will continue to be based in Chicago and DoubleClick expects to increase that workforce. Search Engine Marketing tool will be offered as a stand alone product & later integrated with DFA. Should be immediately accretive to EBITDA and should add at least $10 MM in revenues in 2H04. DCLK will update post-acquisition guidance on July earnings call.

40 DoubleClick s Marketing Solutions: 2H04* Online Advertising TECHSOLUTIONS Marketing Automation Performance Based Marketing DATA DATA Data Solutions ASP and software Tools for ad management (web publisher & agency) Online media planning tool for agencies Rich media tools delivery tools Enterprise Marketing Solutions Campaign Management Marketing Resource Management Web analytics tool Search Engine Marketing Management Affiliate Marketing Catalog customer modeling Customer Data Management Solutions and Services Multi-Channel Marketing Analytics * Upon assumed completion of Performics acquisition.

41 Strategic Rationale Performance-based marketing is a fast growing and attractive market. Significant customer overlap. Performics will benefit from DoubleClick s global presence and gain access to DoubleClick s suite of products. DCLK customers will leverage wider range of marketing solutions and enjoy centralized reporting for entire online spend. Cataloguers, advertisers, marketers, and publishers will have single solution partner & unified reporting for planning, executing, and analyzing campaigns. DCLK is acquiring fast growing company. DCLK will solidify its position as the single-source marketing platform.

42 Takeaways/Q&A: DoubleClick

43 Takeaways DoubleClick already offers the most comprehensive suite of Technology and Data solutions for Advertisers, Cataloguers, Marketers, and Web Publishers Performics deal will enhance the offerings available to both DoubleClick and Performics customers Further details on Performics deal will be given on July earnings call

44 44 Questions?