Note : Les descriptions sont présentées dans la langue officielle dans laquelle elles ont été soumises.
CA 02319981 2000-09-18
A System and Method for
Saving a Link to a Web Site
CA 02319981 2000-09-18
Table of Contents
1. EXECUTIVE SUMMARY 4
2. MISSION
3. CONCEPTUAL OVERVIEW
3.1. THE EMERGING INTERNET ADVERTISING ENVIRONMENT 6
3.2. CLICKUS INTERUPTUS
3.3. SHOP LATER
3.4. How IT woRKS g
3.5. WIRELESS APPLICATION 9
4. KEYS TO SUCCESS 10
5. SERVICE DESCRIPTION 10
5.1. THE CONSUMER FACILITY 10
5.1.1. THE ADVERTISER/AD NETWORK/PUBLISHER FACILITY 11
5.2. COMPETITIVE COMPARISON 12
5.3. FULFILLMENT 13
5.4. TECHNOLOGY 14
5.5. FUTURE SERVICES 14
6. MARKET ANALYSIS 14
6.1. MARKET SEGMENTATION AND STRATEGY 1S
6.1.1. CONSUMER UTILITY USER SEGMENT 1 S
6.1.2. AD NETWORK/ADVERTISER SEGMENT 1 ~
6.2. MARKET TRENDS lg
6.3. MARKET GROWTH 19
7. CLICKLATER REVENUE SOURCES 19
7.1. DEFERRED OR ADDITIONAL INTERACTIVITY 2Q
7.1.1. SHARED CPM 20
7.1.2. DOCUMENTED AD VIEW 21
7.1.3. SHARED CPA 22
7.1.4. NEW INTERACTIVITY 22
7.1.5. CPM 23
CA 02319981 2000-09-18
7.1.6. CERTIFIED VIEW 23
7.1.7. CPA 24
7.1.8. SALE OF CONSUMER METRICS 24
7.1.9. CO-PROMOTIONAL INFRASTRUCTURE 24
8. CLICKLATER SERVICE BUSINESS ANALYSIS 26
9. COMPETITORS 2~
9.1. VALUE PROPOSITION 2~
9.2. COMPETITIVE EDGE 27
10. STRATEGY AND IMPLEMENTATION SUMMARY 2g
10.1. ENHANCEMENT OF CLICKLATER SOFTWARE AND SERVICE SUITE,
ON-LINE
SERVICE AND SALES CAPACITY 2$
1 O.1.1. CULTIVATION OF STRATEGIC PARTNERSHIPS 2$
10.1.2. DEVELOPMENT OF THE ON-LINE MARKETING APPROACH 28
10.1.3. MARKETING STRATEGY 2$
11. APPENDIX A - FIGURES 30
12. APPENDIX B - OVERVIEW 3g
CA 02319981 2000-09-18
1. Executive Summary
CIickLater Systems, Inc. has developed software technologies that present a
unique service environment for publishers, advertisers, advertising networks
and
consumers, as well as large potential savings for corporate IT managers. This
environment allows consumers to defer viewing of web links and advertisements
in any type of document (HTML, Word, Windows Media, etc.) by easily storing
them in our database. It simultaneously reduces costly network traffic in the
corporate environment. The primary business reasons for developing and
distributing this software tool cut to the heart of the emerging Internet
advertising
business.
Our software provides ad networks and publishers with a powerful tool to gain
additional impression and click-through revenue from users who may not be able
or willing to pursue an ad at the moment of exposure. This is of great benefit
to
advertisers since it generates a special, high quality type of potential
customer
who has already expressed an interest in the product by saving it for future
viewing.
The CIickLater toolset keeps a record of the relationship between a
publisher's
website and an advertisement. In addition, corporate IT managers are given a
tool to help mitigate losses and potential legal problems resulting from
employee
misuse and over-use of company networks. The documented requirement for
managing network loads and the display of controversial content related to
Internet surfing provides a major rationale for supporting a rapid deployment
model for the CIickLater toolset.
The ease of install and intuitive operation of the CIickLater service model
helps to
unlock the tremendous potential to be found in Internet advertising. Our
revenue
models are based on the successes of publishers and advertisers and provide
them with tools to further their efforts.
A by-product of this collaborative service model is the creation of a consumer
web space with demographic targeting possibilities that rival those of search
engines. While maintaining complete anonymity of consumers, those same
consumers express interests via each item they save to the system, which
allows
for a fine granularity of consumer profiling. For example, a consumer who
stores
information about cars will be presented with advertising and promotional
materials provided by car manufacturers.
While there are a number of ventures that have made weaker attempts to provide
this type of utility to the consumer, the CIickLater model clearly outpaces
them in
this area and, in addition, innovates from the ground up the services to
advertisers and publishers. Our service model alone provides the considerable
4
CA 02319981 2000-09-18
benefits to corporate IT managers seeking to mitigate network costs while
maintaining the perceived benefit of Internet access for employees. This,
combined with the necessarily centralized nature of our services, provides us
with a competitive advantage that will be difficult to overtake.
2. Mission
Merchant bank Veronis, Suhler & Associates estimates that Internet advertising
will quadruple to $24 billion in 2004, surpassing cable, network TV and
consumer
magazine advertising. Almost 50 percent of online advertising deals combine
CPM (cost-per-thousand impressions) with performance-based advertising; i.e.
click-through.
Unfortunately, Internet banner advertising has dropped to a very low level of
click-through. Some estimates place the rate at .3 percent. Despite the best
creative efforts of advertisers and ad networks, consumers are increasingly
not
clicking on banner ads.
One reason for this has to do with the way Internet users manage their time on
the Internet. Another has to do with corporate policy around non-work related
Internet usage. In both cases, Internet users need the ability to defer
viewing of
interesting ads and other links until a convenient and appropriate time.
Internet advertisers need to be able to track this decision by Internet users
and
maintain their ability to record impressions, click-throughs and other
activity
related to their ads. They also need to be able to collaborate with other
advertisers where appropriate, and co-promote their products and services on a
business-to business level. Internet publishers and ad networks need to be
able
to support advertisers in these requirements and goals. CIickLater Systems
Inc.
has developed a technology model that can deliver solutions to these
requirements for all parties.
In order to capitalize on this technology, CIickLater must:
~ Continue to protect its intellectual property in the unique features of the
technology model.
~ Rapidly deploy its technology by rapidly scaling the existing product to
suitable capacity.
~ Leverage existing and potential partners in order to promote the significant
advantages we have over existing Internet-based link storage facilities,
and to achieve rapid market acceptance and dominance.
~ Be responsive to the needs of publishers, advertisers and advertising
networks which all stand to gain significantly from our products.
~ Develop our ability to integrate our services with existing portals.
CA 02319981 2000-09-18
Attract appropriate staffing by promoting the advantages of working in the
Victoria area, and by offering potential staff appropriate and competitive
compensation.
Finally, given the concentrated nature of the Internet software and
services industry, CIickLater must remain open to the possibility of short-
term acquisition by a larger corporate entity.
3. Conceptual Overview
3.1. The Emerging Internet Advertising Environment
Internet banner advertising has matured over the last 4 years into a very
sophisticated,
highly quantitative and focused high-stakes industry. According to the
Internet
Advertising Bureau [www.iab.com] ad revenues totaled nearly $2 billion in 1998
with
$655 million in the fourth quarter. This exceeded projections by about 25
percent.
The banner ad itself has undergone radical transformation in the last year.
Ads have
changed from static graphical banners to interactive rich media presentations.
The
demands of the advertisers for quantitative proof of results have grown as
well.
Advertisers used to pay for impressions. Some ad business is still done like
this, but
sophisticated tracking technologies now attempt to provide "closed-loop"
analysis of
banner ad performance, billing on actual sales in some instances and "click-
throughs" as
a minimum. Much of this tracking is accomplished through client-level
technology like
cookies.
While the banner ad and associated tracking and performance technologies
continue to
evolve, the focus of banner advertising remains the same. The goal is to
seduce viewers
into clicking the banners - click-through - to visit advertisers' websites.
Rich media
techniques are apparently having an effect on click-through rates, which hover
at a
dismally low level - below 1 percent of impressions - but it is hard to say if
this is simply
a temporary effect wherein the click-through rate will return to a more
natural level once
the novelty wears off. Targeted ad placement is also pushing the click-through
rate up,
though only very marginally. All efforts are aimed at making the user click,
and generally
the user is resisting.
3.2. Clickus Interuptus
Making the user click is a limited-return effort. There is a fundamental
conflict within the
Internet advertising milieu itself that is preventing the user from clicking.
Anyone who
surfs the web, particularly with any intent, has experienced what I call
clickus interuptus.
6
CA 02319981 2000-09-18
The hand moves the cursor up toward the ad, hovers over it, but doesn't click.
Or the eye
grazes the ad quickly, registering the content and perhaps appreciating it,
even desiring it,
but the moment will not allow the user to break out of the current pattern or
activity to
visit the site. The user travels on along the hypermedia pathways and the ad
is lost, never
to be revisited. In short, the user wanted to click, but couldn't at that
time. Too busy, too
focused, deadline approaching, etc. Desire - the wellspring every ad guru
tries to tap -
was present, but it was quelled by some other force or overcome by a stronger
desire. The
hook was in but the barb didn't catch.
It is difficult to estimate what percentage of viewers of an ad might
experience this
unfulfilled desire to follow through with the urge to click. To be very
conservative, we
could estimate that if one percent of ad viewers click, perhaps another one
percent
wanted to click, almost clicked, but didn't and then lost track of the ad or
forgot about it,
their desire losing shape - only to be reshaped by some other ad. If this
conservative
estimate was true, and there was a method to ensure that the additional one
percent could
easily revisit the ad or associated site at a time more convenient or
conducive, this
method would effectively double the click-through rates for banner advertising
on the
Internet. Think of your own experience with banner advertising and ask
yourself what the
actual rate of clickus interuptus might be, and what the impact such a method
might have
on consumer behavior relating to banner advertising.
3.3. Shop Later
Shop Later is a technology that allows the consumer to easily and consistently
revisit ads
at a more convenient time. It is also much more than that. It is a powerful
tool to gather
information about consumer habits online. It allows advertisers to leverage
the
commitment of the consumer by providing a pure advertising milieu entered by
the
consumer precisely when they are in the mood to shop.
At first glance, visiting a site at a later time doesn't sound like much of a
trick. It's called
right-click bookmarking, right? Wrong. You can't bookmark ads with any
consistency.
An ad bookmark usually produces an incomprehensible string in your bookmark
file.
Also, if you try to bookmark the page the ad is on, banner ad distribution
companies
cycle ads on webpages in a way that makes it likely the page you bookmarked
will not
contain the ad presented when you first visited the page
What is needed is a model to facilitate the easy management of ads and ad
destinations
for revisiting at a later time, thus the name Shop Later and the following
model:
1) The Shop Later (SL) plug-in. The SL plug-in is a small, easy-to-install
program that
adds functionality to the browser in the following way: when the user right-
clicks
over a banner ad, a new menu item called "Shop Later" appears. The user
selects this
menu item and forgets about it; the program takes care of the rest. When the
user is in
a shopping mood and wants to revisit some of the ads previously bookmarked, he
or
7
CA 02319981 2000-09-18
she can simply select "Shop Now" from the new "Shopping" menu added to the
browser's regular menus.
2) The Shop Later Website. Once the user has selected "Shop Later", the plug-
in
communicates the URL associated with the ad to the Shop Later website. The
website
comprises the following elements: a personalized webpage for each Shop Later
user;
a database that houses each user's personal preferences; information about ads
selected by users, information about ads provided by the ad networks and
individual
advertisers; demographic information about consumer behavior; and a crawler
that
visits the destination sites referenced in ads to gather information.
3.4. How it works
Shop Later seems simple - it is - but it is actually very powerful as well.
Once a user
selects the Shop Later menu item, the plug-in communicates the URL associated
with the
ad to the central database. The database stores the URL in a file associated
with the user's
profile. The user's profile was set up the first time he or she used Shop
Later. The profile
consists of a username and password at minimum and takes only a minute or two
to
establish. Once associated, the URL is passed to the crawler, which in turn
visits the
destination site and gathers information about it from various identifiable
tags. This
information is used to create a record that is displayed in a list in a fi-
iendly, easy-to-read
fashion each time the user visits their personal page on the Shop later
website. The user
will have a variety of options for configuring their own web page on the Shop
Later site.
Revenue: the user is allowed to download the plug-in and establish a page on
the
Shop Later website. The user can then use the product for a predetermined
amount
of time beyond which it will be necessary to pay a small fee for the software.
The
software will continue to function, but each time it is used, an annoying
reminder
will be displayed.
That's just the beginning. The Shop Later model benefits the ad networks as
well. Ad
networks make money based on click-throughs and completions. Anything that
increases
their numbers in this regard increases their ability to fill ad space they
purchase on
websites. Shop Later will provide the ad networks with the opportunity to
populate our
database with information about ads on their network, including custom data
for
inclusion each time one of their ads is referred to by a Shop Later user. Ad
networks can
also be given priority placement in the Shop Later user lists. These features
enhance the
profile and effectiveness of ad network client ads on the Shop Later system,
providing a
higher potential for additional click-throughs and completions.
Revenue: Shop Later will charge the ad networks for the right to include
proprietary code in their ad wrappers on websites that will allow the Shop
Later
database to identify their ads and insert enhanced content on the user's page.
8
CA 02319981 2000-09-18
Ad networks will also be very interested in targeting users who bookmark
certain types of
ads with additional ads proven to be effective based on demographic
information. On the
user page, each ad will have a link next to it that asks the user if he or she
would like to
view similar ads on the Shop Later website. If yes then ad network demographic
research
comes into play and a list is generated that contains ads for similar products
or services
from other ad network clients.
Revenue: Shop Later will charge ad networks for the right to store associated
advertising on the Shop Later server for viewing by the users if they wish.
Advertisers themselves will be very interested in ensuring their product is
properly
represented on the Shop Later website. Many ads are not distributed through ad
networks.
Therefore Shop Later will allow advertisers to use our proprietary XML
Document Type
Definition (DTD) known as BAML (Banner Ad Mark-up Language) to mark-up
destination websites so that when the crawler visits, it will be able to
gather much more
detailed and targeted information about the product or service for inclusion
in the user's
shopping list. Again, websites marked up with our BAML will be given priority
in the
user's shopping list.
Revenue: Shop Later will license our BAML for use on advertiser websites.
Demographic information will be easily collected on the Shop Later website.
Users can
be induced to associate themselves with a profile through some sort of reward
schema.
The users are then tracked to see what type of ads they look at. The
demographic
information is then packaged and sold.
Revenue: Shop Later will become an excellent source for information about
online
shoppers and will charge for publications that leverage that information.
3.5. Wireless Application
The desire to advertise in the wireless environment is very strong. Our
product allows the
user of a wireless consumer device such as a PDA or cell phone to
"ClickLater", or create
in their ClickLater personal space an independent record of a resource that
lies behind an
advertisement or other link embedded in a wireless webpage or other document
without
having to visit that destination. The ClickLater software works in the same
manner as in
the home computing model, where our crawler goes out and collects information
about
the destination and stores it. Also, the ClickLater personal space can be
viewed on
wireless device as well.
This functionality is very compelling since the problem of limited bandwidth
and
browsing time is particularly pronounced in the wireless environment. As well,
the
advertiser would much prefer the consumer visit the resource in the richer
media
environment of the home-computing environment.
9
CA 02319981 2000-09-18
4. Keys to Success
~ Product quality: the smooth operation of both client software and on-
line services is paramount in ensuring uptake and continued usage of
the CIickLater system.
~ Flexibility and client consultation: the use of the system by advertisers,
publishers and ad networks depends on meeting their needs.
CIickLater must be flexible in subsequent iterations of the services
suite by offering features that satisfy these customers.
~ Promotion: CIickLater must promote its products and services
extensively on the Internet, in other media, and directly to corporate
technology champions in order to achieve early market penetration and
gain the necessary lead in this new market niche.
~ Partnerships: CIickLater must establish partnerships with existing,
successful Internet marketing companies to ensure support and
sustainability of the marketing effort.
5. Service Description
5.1. The Consumer Facility
The consumer facility comprises a free distributed application that allows
them to send clicks/favorites from any link aware application (Internet
Explorer, Word, Outlook, Windows Media Player, etc.) to a central
database where they will be preserved and associated with a unique user
ID. The application installs in seconds using a signed ActiveX control.
The user does not have to restart their system. The user does not have to
visit an Internet destination or click on an advertisement to use the
product, but the product can be used to store pages currently being
viewed as well. The application works when on or offline. It is cookie
independent, allowing users to turn off cookies and still use the product.
Different users on the same PC can use it by simply selecting the current
user from a pop-up list.
In addition there is a user space for consumers to, via a web browser on
any computer, access, store, search, share, and manage ads, links, and
e-mail. The interface provides the same functionality as a web mail
interface. Users can view, move, categorize in folders and sub-folders,
CA 02319981 2000-09-18
delete, send records to another system ID either internally or via e-mail.
An individual record space, which is all the information about a single
completed click (ad or other web page or Internet-based resource), such
as meta tags, when last updated, title tag, initial text, size, images?,
author, trusted?, secure?, MIME type, server information, and any other
data gathered by our crawler in completing a click. This service gives the
user the ability to preview information about a site if desired, and it allows
us to target advertising as well..
The CIickLater click completion robot is an automated routine that, on
behalf of users, completes clicks stored on the system, examines the
resource, and parses out relevant information. The robot can be set to
revisit resources on a regular basis to ensure the resource is still active or
available, or if it has changed.
The CIickLater e-mail server is a standard web-based mail functionality
integrated into the main user space as an additional folder/subfolders.
The CIickLater Adbase search engine is a search facility that allows users
to search on available criteria for products and services advertised on the
CIickLater system.
A comparison pricing interface allows for further comparison shopping on
a product based on input data from a third part service provider.
The user profile centre allows the user to tune his/her experience of the
CIickLater system by providing a range of demographic and habit
information we can then associate with targeted banner ads and co-
promotions. At the very least, this function is looking at user records in the
stored clicks and targeting by virtue of that information.
Bookmark/Favorite upload and conversion utility: This application accepts
and converts a favorites file or bookmark file into the CIickLater record
format for use by the consumer. The consumer then can access and
reorganize the data regardless of where they are.
5.1.1. The Advertiser/Ad NetworklPublisher Facility
An on-line registration form will be submitted by prospective clients and
completed manually by CIickLater staff.
An ad list page shows all ads currently on the system for a specific client.
This provides a variety of sorting functions, plus the ability to make an ad
active or inactive on the CIickLater system.
A publisher interface provides publishers with feedback on the success of
their advertising spaces and potential billing increases associated with
11
CA 02319981 2000-09-18
CIickLater activity.
An ad management screen is available to advertisers/ad network
employees to manage their individual ads on the CIickLater system. This
means they can upload a banner and define a range of characteristics for
that ad. They can define whether the ad is in the CIickLater ad rotation,
which means it will be displayed in our targeted ad space for a full fee, or
if
it is only in the stored click rotation, which means they pay only a
facilitation fee. They can also choose to have the ad come up only in
Adbase searches. This allows them to include the ad ID on their system
and the string to wrap the ad so their system picks up impressions and
clicks, the URL for the ad to be pulled from their system if they desire, TTL
for the ad, maximum number of impressions, description, title, meta data
such as associated keywords, associated promotions or campaigns (by
code), etc. The system will assign an ID to the ad when it is initiated as a
new record.
A co-promotional screen shows the advertiser/ad network client a list of
ads/advertisers on the system that may provide opportunities for co-
promotion, and then allows the advertisers/ad network clients to contact
each other via system ID and set-up co-promotions based on established
fee-based models. Each of these models would have their own additional
screen and billing information screens.
CIickLater will also develop our product so it can be integrated into
existing portals and on-line service environments in order to provide the
functionality seamlessly and leverage it against already implemented
shopping systems.
5.2. Competitive Comparison
CIickLater Systems Inc. represents the entry of an entirely new product for
consumers and advertisers alike. Limited comparisons with other services
can be made, such as BackFlip at http://www.backflip.com, HotLinks at
http://www.hotlinks.com, and SaveThis at http://www.savethis.com/. These
services provide a location independent facility for users to store favorites
or bookmarks, and allow the user to send links to their user space directly
through the use of a button added to the web browser interface.
These other services are primitive when compared to the CIickLater
model. They offer a limited range of services, depend too heavily on
questionable web browser-dependent features, and do not deliver on the
most important features involving click-deferral, completion and tracking,
as well as advertiser and publisher services. These other services are
strictly business to consumer with no apparent revenue stream other than
banner advertising. They are artifacts of the dot.com rush to get anything
12
CA 02319981 2000-09-18
and everything on the web without a solid business plan or diverse
revenue streams.
CIickLater Systems, Inc. has created a diverse, business-to-business
collaboration environment, and has developed technology that allows
advertisers to see more of a return on their advertising dollar by managing
deferred click-through's. The CIickLater model also allows for increased
revenue for publishers because it allows them to achieve additional CPM
and CPA billing. The on-line link storage and management facility is
simply an attendant vehicle to help accomplish these solid business goals.
CIickLater's iteration of the latter facility far out-paces the competition in
the realm of features, flexibility and real-world functionality.
Simply put, CIickLater Systems, Inc. has not reinvented the wheel. We've
greatly enhanced the wheel, and then attached it to a vehicle that will
carry Internet publisher and advertiser collaboration forward into the new
century.
5.3. Fulfillment
The key fulfillment and delivery requirement for CIickLater is two-fold:
~ Successful promotion of the CIickLater service to consumers and
corporate decision makers will allow for uptake and usage of the
consumer facility. This provides CIickLater with a large N user base.
The CIickLater consumer utility is provided via simple download and
install over the Internet, but can also be included as an install on
promotional CDs or for mass distribution in a corporate environment.
User sign-up is simple, and within seconds the user can be sending
deferred clicks to their user space.
Successful promotion of the publisher, advertiser and advertising
network services will allow CIickLater to move beyond the all-or-
nothing dot.com model where impression banner advertising drives all
revenue, and allow us to move into more conventional and proven
revenue streams based around delivery of services and products to the
business community. Publishers, advertisers and ad networks are
educated about the CIickLater model via a variety of promotional
strategies. Person-to-person service greets new clients and, once
signed up, the client can manage their use of our facilities remotely via
client interfaces. Clients are billed based on externally audited
performance measurement.
13
CA 02319981 2000-09-18
5.4. Technology
Technology is of the essence for CIickLater Systems, Inc. Like all good
client-side technology, the CIickLater software should work intuitively,
flawlessly and subtly, causing the workings of the device to disappear
behind pure function, making use of the technology second nature for
consumers. CIickLater excels at this, making the consumer functionality
available with simple and quick installation, and via the familiar and
ubiquitous right-click function in Windows.
At the back end, however, CIickLater systems are built from the ground up
with cutting edge, 100% scalable and platform independent software
products including Java servlets and Oracle 8i, and use emerging
standards such as XML and XSL via the Cocoon XML Publishing
Framework.
Because CIickLater's suite of products and services are mostly unique in
the marketplace, it is difficult to say how changes in technology could
affect the company. CIickLater leverages emerging standards to facilitate
smooth operation and generalized acceptance. Ideally, the CIickLater
model will be adopted as a de facto Internet standard. It is conceivable
that another company could develop a better system to accomplish what
we at CIickLater are trying to do, but the lead we have in the marketplace
makes that unlikely. The goal of our company is to keep our technological
and marketing lead, ensuring consumers, publishers, advertisers and
advertising networks are getting what they need in a timely, efficient and
cost-effective manner.
5.5. Future Services
Consultation with advertisers and advertising networks will allow
CIickLater to expand it's range of services to those communities, allowing
the company to further diversify it's already extensive range of revenue
streams. In addition, CIickLater will offer its consumer facility for
integration into existing portals and on-line services. This will allow these
established businesses to leverage CIickLater while adding their existing
client-base to the CIickLater audience.
6. Market Analysis
The two major impacts of CIickLater in the marketplace will be a) an extension
of
publishers' ability to generate revenue from their content, and an increase in
CPAs such as click-through, as well as collaboration between otherwise
unrelated advertisers, and b) the ability of corporations to save money by
14
CA 02319981 2000-09-18
allowing employees to keep track of non-work related Internet resources that
interest them without putting an undue strain on the network facilities.
Currently the web banner ad business is plagued by a stagnation of real
innovation. Advertisers are focusing on enhancements to the medium of banner
and interrupt ads but, with the exception of adding rich media content and
better
tracking, have not really enhanced the overall environment since its inception
in
1994. Clickl_ater represents nothing less than the first temporal enhancement
in
banner advertising technology. By eliminating reliance on the increasingly
less
and less compelling threat to "click now or forever miss your opportunity,"
CIickLater will provide a unique, powerful advertising environment and a
series of
tools to help publishers and advertisers reach their goals.
6.1. Market Segmentation and Strategy
6.1.1. Consumer Utility User Segment
Internet users need a way to maintain the flow of their Internet usage and
experience without having to break their train of thought - or their
companies Internet usage policies - to pursue an advertisement or other
interesting but unrelated link. This is far beyond the limited capabilities of
current browser technology and on-line link management services.
CIickLater gives consumers the power to easily defer visitation of ads and
other links that interest them, and then revisit those stored resources
either via Clickl_ater's record of the destination website and it's content,
or
by re-visiting the site themselves via the stored link.
It is unreasonable to expect all Internet users to download and install the
CIickLater utility. However, the statistics for installation of popular plug-
ins
and utilities are very encouraging. The most popular plug-ins today have
achieved very high installed bases.
The most popular plug-in is distributed by Apple Computer Inc. Their
Quicklime multimedia technology, which seamlessly integrates
multimedia content with the web, is installed on approximately 65 percent
of Internet capable computers. This is followed closely by Real Networks'
Real Player with a 60 percent installed base, and Macromedia's Flash with
40%.
These companies have achieved this level of installed base through
collaboration and co-promotion. Clickt_ater's strategy emulates this pattern
of success.
The Internet industry Almanac estimates there will be 327 million Internet
users by the end of this year. Aiming at an installed base of 1 % projects
CA 02319981 2000-09-18
the CIickLater software to be installed on 3.27 million Internet consumers'
desktop computers. Active users ultimately determine actual performance
Marketing efforts will aim at the demographics most likely to utilize
advanced technologies for consumer purchases as well as for information
organization and retrieval. We will also vigorously approach those
responsible for technology standards within the business and government
environments in order to encourage corporate uptake and savings by a
reduction in work time surfing.
Because the experience of the interruption of web advertising is universal,
the CIickLater consumer utility is an appealing product for all Internet
consumers. The CIickLater consumer model widely outpaces existing
Internet-based link storage services with cutting-edge technology that
defers, completes and stores clicks, as well as current pages, on behalf of
the user. This gathers intelligence about sites and reduces surfing time
and volume on the user's (and often the company's) connection time.
CIickLater's innovative software also allows consumers to use our service
when surfing cached pages, and can be used from most hyperlink aware
applications in addition to Internet Explorer. By leveraging the right-click
context menu, CIickLater keeps users within familiar navigational and
operating system territory, eliminating the need for clumsy java script-
based toolbar buttons. These features and others mean CIickLater has a
clear technology advantage that will be the foundation for our target
market segment strategy.
Another major source of market segment penetration involves the
promotion of the technology in the traditional media. A large percentage of
Internet users who are avid but under-skilled, and thus more intimidated
by web ads, look to traditional media such as magazines and television for
additional information and knowledge about the web and how to use it
properly. Promotion of the product via these types of media benefits the
uptake rate as well. Also, the Internet technology press will take an
interest In the CIickLater model and it's innovative services. This leads to a
'buzz' about the product, which is often the best way to get the word out.
Clearly, the most powerful source of promotion will come from increased
exposure for the model through co-promotional arrangements with large
media outlets or advertising networks that share an interest in the success
of the model. Allowing for discounted service to major advertising
networks during a promotional phase in exchange for wide exposure on
thousands of websites should greatly accelerate uptake of the consumer
facility.
Further to this, one of the strongest interests in the success of the model
likely lies within the corporate work environment itself. Chief Technology
16
CA 02319981 2000-09-18
Officers and executives charged with increasing productivity among the
workforce will see the CIickLater model as an excellent tool to combat web
surfing among employees. This will lead these executives to promote
CIickLater over other existing models that work only once the employee
has reached a destination website.
6.1.2. Ad NetworklAdvertiser Segment
Ad networks suffer from declining CPM and CPA as web ads proliferate
and fade into the general noise of the web. The CIickLater consumer
utility, more than any innovation in interruption based ad techniques, gives
ad networks the ability to capture a consumer and realize an additional
impression or click-through at a later date based on a single impression.
Again, if the CIickLater system eventually realized only a .3% increase in
overall click-through rates vs. impressions for banner ads, this will
represent a doubling of that statistic overall and double the impact for
advertisers who certainly do want consumers to click on their ads and
experience their additional creative and campaign elements.
Advertisers need to realize better return on their advertising investment.
0.3 percent click-through represents a waste of the web's unique click-
through feature, which exists over and above any ambiguous brand
awareness or loyalty effects. CIickLater maximizes exposure and potential
completion by providing consumers another opportunity to visit an
advertiser's website at a time when it is convenient, allowed and the
consumer has a much higher level of intent. The ability to visit an
advertisers website easily and conveniently on their own time ensures
interested consumers WILL visit the site if they want, not just if it is
convenient at the time the ad is viewed.
The CIickLater model is designed in a way that would not allow a single ad
network or advertiser to implement and profit from a similar service, as
that service would be available for only a small percentage of ads now
present on the web.
Assuming there will be no monopoly on web ad distribution, the CIickLater
model ensures participation by publishers and advertising networks is to
their benefit and the benefit of the advertisers that contract their services.
This means, given there is no competing product/service model similar to
CIickLater; the market segment for web ad networks is 100 percent.
Marketing efforts will aim initially at the larger ad distribution networks.
Similarly, advertisers will be drawn to CIickLater because of our highly
targeted environment, collaborative environment and large N user base.
Advertising networks comprise both actual nefinrork ad distribution
17
CA 02319981 2000-09-18
companies like Flycast and DoubIeClick, as well as large N page view
websites with their own independent advertising infrastructure like MSN
and CNN. Both these types of entities rely on statistical accounting of their
ability to deliver impressions and click-through's for advertisers. The
CIickLater completion robot will be filtered out of any statistical accounting
in much the same way as search engines and other robots are today.
However, saved clicks that are later clicked on again will be considered
legitimate. Ad networks cannot achieve revenue from these types of
deferred clicks without registering with CIickLater. This means the
strongest strategic element for promoting CIickLater to this segment is the
profit motivation of the ad networks.
Similarly, advertisers want to maximize the performance of their ads and
will be motivated by CIickLater's advertiser education campaign. This will
ensure they are aware of the benefits of CIickLater and will insist the ad
networks they deal with participate in the CIickLater model.
Advertisers are equally attracted to CIickLater's website environment
because we can achieve highly targeted banner ad delivery against user
profiles and user records. Thus CIickLater becomes a highly desirable
advertising environment. This is enhanced by CIickLater's co-promotional
back-end utilities that allow advertisers to scan advertising content on
CIickLater looking for potential co-promotional opportunities. The system
then allows the advertisers to make contact and agree to one or more of
CIickLater's co-promotional schemes.
6.2. Market Trends
There is a growing trend in Internet advertising discussion, evidenced by
the current focus of publications by groups such as the Internet
Advertising Bureau, away from click-through's and completions - e-
commerce - toward more traditional measurements of success in
advertising such as brand awareness and brand loyalty. To some extent
this represents an abandonment of the web's unique potential to attract
consumers and then use the same medium as a direct connection
between consumers and sellers.
This abandonment is spurred by a desire to keep the Internet advertising
business growing in the face of declining click-through's. This flies in the
face of actual studies of which firms are spending the most on Internet
advertising and the products they are pushing. It's clear that a large
proportion of the major players who advertise understand the truly unique
potential for web advertising lies in e-commerce.
CIickLater is focusing on growing its business in the area where consumer
money is being spent, and where businesses are exchanging services and
18
CA 02319981 2000-09-18
money as well. We are aiming at facilitating e-commerce success via web
advertising that is convenient to view and utilize in consumer behaviour.
6.3. Market Growth
It is nearly impossible to read any business or industry publication today
without coming across the phrase "exponential growth" in relation to the
Internet and home computing. This growth is fueled by the promise of
cheaper computers, faster Internet access and growth in the number of
people accessing the Internet worldwide. Varying projections of the
number of Internet users coming on line have the total number of users at
least doubling in the next 5 years.
Despite recent shudders, Internet start-ups and Internet technology stock
offerings remain one of the hottest areas of economic growth in North
America and throughout the western industrialized countries. This is
particularly the case for start-ups that present solid business-to-business
revenue models. Add to that the fact that Internet advertising expenditures
are universally projected to double in each of the next five years and you
have a prime opportunity to get involved with a technology poised to make
a major impact right at the heart of e-commerce.
7. CIickLater Revenue Sources
The following is a description of the many potential revenue streams that flow
from use of the CIickLater consumer utility and advertiser/ad network
facility.
Each revenue stream is described in terms of
~ The service we provide and are paid for;
~ How the service is provided, including third party participants; and
~ What the justification for the service is in terms of who benefits and how
they motivate others to participate.
Revenue comes from four main business areas:
~ Deferred or additional interactivity between consumers and advertisers
that may not have taken place without use of the CIickLater system;
~ New interactivity between consumers and advertisers generated through
consumer use of the CIickLater system;
~ Sale of consumer metrics to interested parties; and
19
CA 02319981 2000-09-18
~ The facilitation of collaboration between advertisers via co-promotional
utilities and models.
7.1. Deferred or additional interactivity
Deferred or additional interactivity comes in several form and each has it's
own justification. These models involve sharing revenue with destination
websites either directly or via arrangement with their ad broker or network.
The CIickLater consumer utility allows a consumer to send a link to their
account for storage and later retrieval. If the link is a banner ad or other
form of ad creative that is registered with the CIickLater system, the link is
not completed as it would be for any other form of link, but rather the
consumer record is drawn from the CIickLater database record for that ad
creative. This means the consumer is shown the original (or substitute)
creative along with the original URL when revisiting their stored links. This
preserves the relationship between the source website and the
advertisement. The following actions are possible as a result:
7.1.1. Shared CPM
~ Service: If the consumer views the stored advertisement in their
personal userspace, this counts as an impression. Much of the banner
advertising on the web is sold at CPM or cost-per-thousand
impressions. CIickLater tracks the source website for the original ad
and provides a record of it so the source website can claim revenue for
this impression. CIickLater takes as our fee a portion of the revenue
received by the source website as a result of our intervention.
~ How we do it: CIickLater preserves information about the source URL
for each link stored on our system. If that link was for a banner ad
registered on the CIickLater system, CIickLater will not have completed
the click and crawled the destination site to create the consumer
record, but rather substituted the pre-defined ad creative, appropriate
link and additional information as defined by the advertiser or ad
network. This means that the ad is displayed in the consumer
userspace by pulling it from the ad network server, or from our internal
ad server, depending on the arrangement. This means we show up
properly in the ad network's records, or we can properly track the pull
in our own records, and we can also associate that pull or impression
with the source URL that originally displayed the ad. In order to
complete this operation, CIickLater must have agreement with the ad
network and their participation is required to configure the reporting
relationship to mutual satisfaction.
CA 02319981 2000-09-18
~ Who benefitslwhat motivates: There are a number of benefits and
motivations at work here. For the source website, being able to gain
additional revenue from an ad through a registered impression
happening on our server is a financial benefit they would not receive
had the consumer simply ignored the ad and moved on. Other benefits
for the source website are the ability to claim that the ads displayed on
their websites are being seen. They can also claim a higher impression
rate. Advertisers will prefer to pay for the ad to be displayed on our
system because they know that it is a quality impression generated in
a userspace of a consumer who has already exhibited an interest.
Advertisers will then require source websites and ad networks to
facilitate the CIickLater process by registering the ad creative and
providing the additional information. Ad networks are then compelled
by self-interest to participate in the CIickLater program because both
the advertisers and the source websites like the idea. There is no loss
to the ad networks, and claiming to be working with CIickLater will
enhance their ability to attract new clients.
7.1.2. Documented Ad View
Service: CIickLater will be in a position to document when a user has
viewed an ad for certain, even if they never click-through. This
provides a new ad performance measurement that can be used to
create a new billing category. CIickLater takes as our fee a portion of
the revenue generated by source websites and ad networks by
delivering documented ad views.
~ How we do it: CIickLater preserves information about the source URL
for each link stored on our system. If a link is a registered ad,
CIickLater will have substituted the ad creative (or substitute creative)
in the consumer record for that link. This means we know where the ad
originally came from, and can provide documentation about how many
people have deferred clicking on the ad via our system. This deferral is
a de facto record that the user has viewed the ad for certain. In order
to complete this operation, CIickLater must have agreement with the
ad network and the advertisers that a fee is paid for documented ad
views as a measure of performance, and their participation is required
to configure the reporting relationship to mutual satisfaction.
~ Who benefitslwhat motivates: Advertisers are motivated to agree to
a billing regime that charges for documented page views because this
provides them with a better indication of the websites where their ads
are being viewed. CPM is no guarantee that the ads are making a real
impression. Ad networks are motivated to institute this type of billing
because they want to show performance for their advertisers, and a
documented view is a clear indication of performance. Because there
is a new billing regime supported by documented views, source
21
CA 02319981 2000-09-18
websites will want to encourage use of CIickLater in order to maximize
their potential revenue from documented views.
7.1.3. Shared CPA
~ Service: CPA is another prevalent mode of billing for ad networks and
source websites. Actions include click-through's, lead creations and
sales. Advertisers are currently paying for these actions. CIickLater is
in a unique position to allow consumers to defer their action that results
in this billing. CIickLater charges a fee that comprises a portion of the
CPA.
How we do it: If the consumer stores a link on our system and that
link is to a registered CPA ad, we can keep a record of the source
website and report out on any action associated with that ad occurring
at a later date. This way we preserve a revenue stream for source
websites and ad networks that may have been lost otherwise. In order
to perform this service, we will need to be able to interface with existing
CPA network billing systems.
Who benefits/what motivates: Source websites will want to utilize
this service because it provides an opportunity for them to achieve
revenue they may never had received if the consumer declined to
click-through to the advertisers site. By sharing revenue created when
the consumer returns to their CIickLater userspace and clicks on the
ad, potentially creating a lead or a sale as a result, the source website
adds to their revenue. Ad networks are motivated to participate
because CPA is based on a measurable performance. CIickLater
delivers additional performance and attracts advertisers and source
websites alike to their service. Finally advertisers are happy to pay
CPA because it is a tangible result. The more tangible results the
better. Particularly in the case of click-through, where a click-through
could be measured with no time spent at the site due to time
constraints or the boss walking around the corner, a CIickLater
deferred click-through is of a higher quality because the consumer has
returned to the ad with the intention of investigating it further and
potentially shopping.
7.1.4. New interactivity
Given that the CIickLater consumer utility stores links of interest to
consumers, including ads, webpages and other objects, and that
CIickLater encourages it's users through various means to profile
themselves on our system, CIickLater's user environment rivals any
website for advertising targeting potential. CIickLater provides for a
number of specific areas where targeted banner ads can be displayed. We
also provide for opportunities for collaboration and co-promotion between
advertisers using a series of predetermined models. Finally, we provide an
22
CA 02319981 2000-09-18
opportunity for advertisers to register for our adbase search facility, which
generates keyword-based results exclusively in ad format.
7.1.5. CPM
Service: CIickLater is in a position to deliver highly targeted banner ad
space. We will be able to target based on Gender, Age, Income,
Interest Category, Keyword, Editorial Keyword, Geographic Location,
High Level Internet Domain Type, Organization Type, Organization
Name, Organization Size or Revenue, Service Provider, User's
Operating System, Browser Type, Days and Hours to Display an Ad
Banner and any other collectible variable. All this takes place in an
environment of privacy where the user's name and address is
unknown. A full CPM will be applied.
How we do it: CIickLater Systems has a number of options in
delivering this service, ranging from full outsource via an ASP with
these capabilities, off the shelf product integration or ground-up
product development. The cost-benefit remains to be completed. The
main foundation of our ability to target is our collected information
about our users and the data contained in their accounts and profiles.
~ Who benefits/what motivates: clearly there is an interest in
purchasing banner ad space on the web. Advertisers look for the type
of targeting opportunities described above, as do ad networks that
recruit publishers to their network programs.
7.1.6. Certified view
~ Service: Each time a consumer uses CIickLater to defer a click on an
ad in CIickLater's regular ad rotation, we charge a certified view fee,
which is a percentage of a CPA.
~ How we do it: The CIickLater system records each deferred click as a
time-stamped event. We simply report out on these events with any
relevant information that does not contravene our privacy policy.
Who benefitslwhat motivates: Advertisers are very interested in any
information regarding consumer behavior, particularly if it relates
directly to one of their ad campaigns. A CPA-type fee for reporting out
on each certified view is an attractive source of information for
advertisers. This in addition to the fact that it is a certified view of an ad
impression means the certified view is a valuable service, particularly
since advertisers are willing to pay for uncertified views at CPM rates.
23
CA 02319981 2000-09-18
7.1.7. CPA
Service: CIickLater creates new Cost-Per-Action events by displaying
advertising to its users as they retrieve and manage their clicks, as the
view their e-mail, or as results from an adbase search initiated by the
consumer. This provides advertisers a higher likelihood of achieving
significant results from a banner ad campaign. A full CPA rate will be
applied.
~ How we do it: CIickLater's service environment can easily make the
claim to rival even the most highly targeted user environments on the
web. Because each user has expressed an interest in each item they
store on CIickLater, we are able to parse keywords from each and
build a profile of the individual user's interest areas. We are then able
to target ads with a great degree of certainty.
Who benefitslwhat motivates: Advertisers find the CIickLater
environment to be compelling because of a number of reasons: the
user is typically there under less stressful circumstances and has
returned because they have time to review deferred clicks. This means
they are more likely to "in the mood" for pursuing advertising. Add this
to the targeting mentioned above, and the possibility that a user will
defer an ad and view it later yet makes advertisers demand that the ad
networks distribute ads to CIickLater. The ad networks see the benefit
of this agree to put CIickLater in their rotation.
7.1.8. Sale of consumer metrics
~ Service: CIickLater will be in a position to charge a premium price for
metrics associated with consumer behavior in relation to Internet
advertising. A per report fee, or a subscription-based fee will be
charged. There will be additional charges for access to the custom
reporting tools available for extracting reports from the data store.
~ How we do it: Because of our unique ability to gather information
about consumer behavior on several machines across an extended
period of time, we offer unique insight into the
~ Who bene~tslwhat motivates: Advertisers must be in a position to
claim to be informed about consumer behavior. CIickLater's metrics will
be unique and desirable for advertisers, advertising and marketing
firms, ad networks and other associated professions.
7.1.9. Co-promotional infrastructure
~ Service: A business-to-business co-promotional back-end service will
be made available to advertisers so they can leverage each other's
24
CA 02319981 2000-09-18
success to create additional opportunity and profit. A per-event fee will
be charged.
How we do it: CIickLater will have a very large repository of ad
creative from a diverse (geographical and subject) range of
advertisers. By providing a subset of information about advertisers to
other advertisers, companies will be able to use a number of co-
promotional models to link their advertising and marketing efforts to
each other. Also, access to information about other companies allows
for a higher level of awareness of the marketplace.
~ Who benefitslwhat motivates: business-to-business models are
emerging as a bona fide success story in the Internet world today.
These types of affiliate and co-promotional strategies are proven
mechanisms for gaining exposure. Advertisers will take the initiative
and establish these linkages on their own.
25
CA 02319981 2000-09-18
8. CIickLater Service Business Analysis
Internet-based link preservation services typically take the form of a user
space
supported by advertising revenue. There are several of these models on the
Internet right now. It does not appear that any of these services attempt to
do
anything similar to what we propose to do for advertisers, publisher and ad
networks.
The Internet advertising business comprises a number of very large advertising
networks and a much larger number of small advertising networks who
effectively
buy space on publishers websites for a fixed price, and then sell that space
to
advertisers based on CPM or some form of CPA or both.
There are an increasing number of websites supported by advertising revenues
while many large, advertising supported, websites manage their own ad sales.
Advertisers appear willing to spend money on ad impressions alone (CPM). This
form of advertising mimics the traditional media in that the consumer is
expected
to take notice and be informed or establish brand awareness. Many advertisers
realize the main additional benefit of Internet advertising is the possibility
of the
action of clicking. This can lead to higher brand awareness and possibly a
lead or
a sale.
Typically the ad networks handle the business of enhancing the performance of
on-line advertising. The ad networks sell services in addition to simply
pushing
ads out to websites. These services purport to target ads more selectively and
thus achieve higher brand awareness and click through or other associated
actions.
There are a number of consumer utilities that allow a user to preserve
bookmarks
or favorites at a remote site, and some allow the user to preserve links for
future
viewing by capturing the currently viewed page using a java script and sending
it
to the repository. This is where the similarities end.
CIickLater far outpaces any of these competitors to the extent that it is
difficult to
even call them competitors.
In addition to advertising networks, networks, large N destination websites
like
CNN and MSN manage their own advertising spaces. These entities have no
way of preserving ad links for a potential deferred click. There is no current
product or model emergent from this segment that competes with CIickLater.
CIickLater Systems will distribute client software via our production
facility. We
will also utilize existing on-line distribution facilities such as
Download.com and
CDROM.com. We will also package our software on a CD for network
26
CA 02319981 2000-09-18
installations in corporate environments.
CIickLater uses tried and true methods of software marketing to ensure
adequate
distribution of our consumer utility. Users are able to download, install and
use all
the features of our soffirvare for no charge.
Since there is no competing model for what CIickLater accomplishes through our
range of services for publishers, advertisers and ad networks, we anticipate
an
early uptake and a rapid spike in participants. If a competitor emerges, we
will
need to analyze the strengths and weaknesses of that competitor and adjust our
model accordingly.
9. Competitors
There are no direct competitors for CIickLater. There are some on-line link
storage facilities, but none come close to the functionality offered by
CIickLater.
These competitors are likely to be the ones who adapt and form competition
down the road. See http://www.hotlinks.com and http://www.backflip.com/ for
examples of on-line link retrieval systems currently in use.
9.1. Value Proposition
CIickLater's suite of services for advertisers, ad networks and publishers
provide
tools to greatly increase the potential impact of web banner advertising. This
means advertisers will see better ROI on their advertising expenditure, which
leads them to advertise more, which is money in the bank for publishers and ad
networks. In addition, ad networks and publishers share the revenue CIickLater
generates in delivering these benefits. Our revenue is performance based.
9.2. Competitive Edge
CIickLater's competitive edge is substantial. We are unaware of any model in
use
or in development that proposes to do what we propose to do and can do using
our existing technology. Given the right strategic alliances, the CIickLater
model
has the potential to become established as the industry standard in link
storage
and deferred ad interaction.
27
CA 02319981 2000-09-18
10. Strategy and Implementation Summary
10.1. Enhancement of CIickLater Software and Service suite, on-
line service and sales capacity
While the CIickLater client software and user database are currently
functional, further enhancements are needed to rewrite and scale our
major components and ensure 100% compatibility with user systems.
Once this is complete we will contract an ASP to host the production
facility and go live with the consumer-side product. We will then continue
development of the publisher, advertiser and ad network facility. This
enables us to begin distribution of the client technology well in advance of
providing the business-to-business services.
10.1.1. Cultivation of strategic partnerships
CIickLater's success with network ad firms and advertisers depends on
a clear understanding of all of their needs. A strategic partnership with
a major ad network and a major Interactive Ad agency would enable
CIickLater to further anticipate demand and thus outpace any potential
competitors. DoubIeClick, a large ad network, also provides ASP ad
serving technology that may be prime candidate for integration with the
CIickLater model. DoubIClick's market share would virtually ensure
rapid uptake of the CIickLater model.
10.1.2. Development of the on-line marketing approach
The strategic partnerships mentioned in 2. above would also enable
major exposure and cost-limited development of the on-line campaign.
The established nature of such firms would also lend credibility in the
minds of traditional media outlets and on-line technology media. Aside
from on-line advertising, the most powerful advertising is the buzz
machine.
10.1.3. Marketing Strategy
Our marketing strategy aims at rapid and wide dissemination of the
CIickLater client utility. In addition to promoting the software by typical
means, such as advertising and Industry analysts, CIickLater can make
a solid claim to be of benefit to corporate and government It managers
by allowing them to distribute a utility to reduce employee surfing and
network usage. Marketing directly to these individuals will enhance our
potential for market penetration on the consumer services side.
28
CA 02319981 2000-09-18
Marketing to Publishers, advertisers and ad networks will take place
via direct marketing and advertising in industry specific publications.
Also, promotion of the facility to industry analysts will help feed the
buzz machine.
29
