Classmates.com 2007 Annual Report Download - page 11

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sales leads, soliciting information, registrations or the purchase of an advertiser's products or services, or increasing customer traffic on an
advertiser's Web site.
All of our loyalty marketing service revenues are classified as advertising revenues. Advertisers primarily pay us when our emails are
transmitted to members, when members respond to emails and when members complete online transactions. During 2007, we marketed the
products and services of over 400 advertisers to our MyPoints members.
Media Services. MyPoints primarily allows advertisers to directly market their products or services to MyPoints members through the
following media services:
• Bonusmail. We send personalized email marketing messages, called Bonusmail, directed specifically to individual MyPoints
members, that showcase a single advertiser or offer. Generally, our members receive points for clicking through the media links
in Bonusmail as well as for purchases or other actions taken within a limited time period.
• Newsletters. We email monthly and other periodic newsletters to our MyPoints members on topics such as books, travel and
seasonal themes. Each newsletter features offers from one to five advertising sponsors.
• Exclusive member offers. Exclusive member offers, available on our MyPoints Web site, allow advertisers to offer multiple or
bundled products and services to MyPoints members through our Web site and are regularly promoted to our members via email.
•
Web site placements.
We offer sponsorship opportunities for advertisers to prominently display their products and services to our
members directly on our MyPoints Web site. Display advertisements on our Web site provide an additional form of exposure for
advertisers to market their products or services.
This wide array of media services allows MyPoints to create targeted marketing campaigns for advertisers by selecting from more than 400
available demographic and behavioral parameters based on the personal interests, purchasing behavior and demographic profiles of our
MyPoints members.
Other Services. Our members can earn points and advertisers or marketers can reach our members through a variety of other member
activities including shopping on our MyPoints Web site which also serves as an online shopping portal; completion of online market research
surveys on behalf of market research companies; searching through a MyPoints branded toolbar; acquiring and using a MyPoints branded credit
card; and playing MyPoints branded online games.
Our strategy for our online loyalty marketing service includes the following key elements: enhance the member experience and engagement
on our Web site by developing new features that provide a more personalized experience and new ways for our loyalty marketing members to
earn points; expand our member base through new marketing techniques and acquisition channels, including cross-marketing our services to our
Classmates members; and increase monetization on our Web site by developing additional methods for designing advertising campaigns for our
loyalty marketing members that are specifically tailored to an individual's personal interests, purchasing behavior and demographic profile.
Communications
Our Communications pay services principally include consumer dial-up Internet access and email under the NetZero and Juno brands. We
also offer Internet access and email services under other brands and offer several additional pay services, such as Internet security services, Web
hosting services and premium email, but these additional services and brands do not generate significant revenues. In total, we had 2.2 million
Communications pay accounts at December 31, 2007. For additional information regarding our Communications segment, see Note 10—
"Segment Information" of the
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