switching procedure85. Internal emails from DoubleClick show that a client's switch to OAS only took a few days86.
Furthermore, DoubleClick's standard DFP migration plan foresees that it
takes between [<1 Month]* to be implemented. Of the […]* European DFP implementations completed in 2007, 70% were completed in less than 30 calendar days, and the remaining in less than 65 calendar days.
While the market investigation provided mixed answers regarding the
theoretical level of switching costs, there is evidence that a large number of publishers and advertisers have switched from DoubleClick to other service providers (and vice-versa) in the past few years. This would tend to confirm the view of the notifying party that switching costs are manageable.
As indicated in paragraph 117, the switching data provided by the notifying
party indicates operating in the
in 2006, DoubleClick lost [<100]*
publisher customers and [<40]* advertiser/agency
customers). Given that DoubleClick's EEA customer base advertisers and [<300]* publishers in 2006, the switching rate87 of 12.6% in 2006 (16% for publishers and 8.5% for
consisted of [<300]* data implies a churn advertisers)88. These
customers represent about the customer's revenue in turnover in the EEA.89
USD […]* 2005), that
million dollars in lost revenues (based on is, about [<10%]* of DoubleClick's 2005
Based on data for the Americas and the EMEA, DoubleClick lost a total of
[<150]* existing customers ([<100]* publisher customers and [<50]* advertiser/agency customers) in 2006 out of approximately [<700]* advertiser/agency customers and [<700]* publisher customers worldwide. This
compared with other ad serving providers, although information provided by another significant competitor.
Since the beginning of 2007 (and up to October), DoubleClick has lost
[<150]* existing customers ([<100]* publishers and [<50]* advertisers). These customers represent about USD […]*in lost revenues (based on the customer's
See FTC doc. 35.
See FTC doc. 36 and 37.
Churn rate, as applied to a customer base, refers to the proportion of contractual customers or subscribers who leave a supplier during a given time period.
Note that of the [<100]* customers that switched in 2006, [57%]* were Falk customers (DoubleClick acquired Falk in March 2006).
Note that these numbers exclude the revenues generated by the Falk customers in 2005. The loss in revenues is significant on the publisher side as the 2005 revenues from the customers that switched represented […]* of DoubleClick's publisher side revenues.