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Livingston: What did you find people misunderstood Davis: I think it was more of a lack of a clear vision as to what the Internet
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would become. There was very little appreciation that it would ever become a household tool. But bear in mind, at this point in 95, even computers in the home were somewhat unusual. We had them on our office desktop, not at home with our kids using them. We look back retrospectively at the Internet and say it s the greatest medium that s ever existed. But in 95 email was unheard of other than in the office.
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Livingston: How did Lycos get its first traffic Davis: We were fortunate in the sense we had a good product at that point in time, despite the fact that there were others ahead of us. We promoted, we advertised, we aggressively sought PR. Over the years we got a lot of press. We evangelized in a big way. We encouraged our employees to tell their friends, families, and neighbors about Lycos and how they could utilize it. Eventually over a period of about 18 months, we had this snowball that had become a giant snowball rolling down the hill with a lot of momentum that was very difficult to stop. Livingston: So who were your first customers Davis: We talked all the time at Lycos about the three customers we had:
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employees, our advertisers (the paying customers), and our users. From my standpoint, users were on the top of the list because without the users, we d have no company. So it s interesting that those who were most removed, in the sense that we had no formal interaction with them the viewers of our product were the most important to our success. And we didn t know who was watching, especially early on. We didn t know when they were watching, but we knew they were watching. We knew from the logs the audience was growing rapidly. AT&T was our first paying customer an advertiser. It was tiny: a $5,000 insertion order. But it was euphoria our investors were excited, employees were excited. And then we took the order and quickly realized that we didn t have any technology to place an ad on our server! We had the technology guys going crazy for about a week and a half, but they figured out a way and we got that first banner ad for AT&T running on Lycos.
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Livingston: What was Lycos doing that was different from its competitors Davis: We did an awful lot that was similar to one another in terms of the products we sold. If you went to Lycos, Yahoo, Infoseek, or Excite, the products had more in common than they had apart. But where we differentiated ourselves was less so with technology and more so with the consumer, and that s brand. And we worked very hard on our positioning and our branding of the company in terms of what we wanted it to be. We tried to be this safe, comfortable environment for folks that were just trying to figure out the Internet. We thought of ourselves as the Internet on training wheels. A good way to find your way around was using Lycos, and we worked really hard to position ourselves
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Bob Davis 423
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that way. So we weren t trying to be the souped-up Maserati (as a VP of marketing used to say) that could go 120 miles an hour. And we weren t trying to be a cramped little Beetle. We liked to think of ourselves in that analogy as the family sedan, the Ford Taurus. Not the sexiest out there, but very purposeful in what we did. We also were different because we focused on earnings from the day we incorporated, and many others did not do that. We were a profitable company very early on, maybe a year and a half or so into our life, and we really were the exception.
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Livingston: Which competitor did you worry about most Davis: It depends what day of the week it was. Probably Yahoo. Early on,
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Google didn t exist; they didn t show up until around 98. We worried about Microsoft s intentions for getting into the online world. Its pocketbook was boundless. They could show up with a strong offering and advertise the heck out of it. Then we also worried about Yahoo because back then it was the 800-pound gorilla. Yahoo had a larger audience than we did. We were playing catch-up with them.
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