X hits on this document

238 views

0 shares

0 downloads

0 comments

42 / 98

switching procedure85. Internal emails from DoubleClick show that a client's switch to OAS only took a few days86.

145.

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.

Actual switching

146.

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.

147.

As indicated in paragraph 117, the switching data provided by the notifying

party indicates operating in the

that EEA

in 2006, DoubleClick lost [<100]*

existing customers

([<60]*

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

148.

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

suggests

an

overall

churn

rate

of

about

9%

at

the

worldwide

level.

The

market

investigation

has

revealed

that

these

churn

rates

may

be

on

the

high

side

when

compared with other ad serving providers, although information provided by another significant competitor.

they

are

similar

to

the

149.

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

85

See FTC doc. 35.

86

See FTC doc. 36 and 37.

87

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.

88

Note that of the [<100]* customers that switched in 2006, [57%]* were Falk customers (DoubleClick acquired Falk in March 2006).

89

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.

42

Document info
Document views238
Page views238
Page last viewedMon Dec 05 09:56:12 UTC 2016
Pages98
Paragraphs2084
Words46734

Comments