Classmates.com 2008 Annual Report Download - page 14

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code, gender, date of birth, and an email address to register. Members register to receive direct email marketing and other online loyalty
promotions, and earn points for responding to email offers, taking market research surveys, shopping online, and engaging in other online
activities. Rewards points are redeemable primarily in the form of third-party gift cards from over 70 merchants, including retailers, theaters,
restaurants, airlines, and hotels. Participating merchants include, among others, Amazon.com™, iTunes®, Marriott, Macy's, and Target.
MyPoints provides advertisers with an effective means to reach a large online audience with targeted and untargeted marketing campaigns.
We use a variety of criteria, including personal interests, purchasing behavior and demographic profiles, to create targeted promotions for
advertisers. We tailor these marketing campaigns to meet the needs of the specific advertiser, which may include generating 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 2008, 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 several advertising sponsors.
• Exclusive member offers. Exclusive member offers, available on our MyPoints Web site, allow advertisers to offer 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 on our MyPoints Web site. These advertisements provide an additional
form of exposure for advertisers to market their products or services.
This broad range of media services allows MyPoints to create targeted marketing campaigns for advertisers by selecting from a variety of
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; 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 service by developing new features; expand our member base through new marketing techniques and acquisition channels, including
cross-marketing our services to Classmates members; and increase monetization 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.
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