Classmates.com 2008 Annual Report Download - page 17

Table of Contents
opportunities. We also use targeting technologies and Web site integrations in order to provide effective solutions for advertisers.
Communications
Our Communications services generate advertising revenues from search placements, display advertisements and online market research.
Substantially all of our Communications advertising revenues are generated from our Internet access services. We host and customize the initial
Web site displayed to users of our Internet access services. This Web site, or "start page," displays sponsored links to a variety of content,
products and services, including Internet search. We also display a toolbar on Internet access users' screens throughout their online access
sessions that is generally visible regardless of the particular Web site they visit. The toolbar contains Internet search functionality and a variety
of buttons, icons and drop-down menus. A variety of advertising opportunities also exist through our email platforms, including display
advertising on the main pages and within emails.
Sales and Marketing
FTD
Our marketing efforts within the FTD segment are primarily focused on attracting orders from new and existing consumer customers;
marketing our services to members of our florist network; attracting new members to our florist network; and marketing our services to
alternative channels such as supermarkets. We also engage in a variety of activities to build and enhance the FTD and Interflora brands.
Our marketing efforts for our consumer business include: online advertising, primarily related to search engine marketing; co-marketing
and affiliate partnerships with retailers and loyalty programs such as airlines, credit card companies and hotel chains; database marketing to
existing consumer customers featuring timely email promotions; direct mail and other forms of print advertising; an email-based reminder
service that provides consumers with personalized reminders of occasions such as birthdays, anniversaries and key gift-giving holidays; radio
advertising; cross-marketing to the large base of consumers registered to United Online services, including Classmates, MyPoints, NetZero, and
Juno; and search engine optimization.
Our marketing efforts for our florist business include: member appreciation and training events for FTD and Interflora florist members;
sponsoring and participating in floral and retail industry trade shows; and offline media campaigns. In addition, many of our marketing efforts
for our consumer business are also designed to enhance the businesses of our florist members. By enhancing the FTD and Interflora brands, we
increase the possibility that a consumer will place an order directly with one of our florist members who are able to market themselves as part of
the FTD and Interflora florist networks. FTD also employs a dedicated sales force to market our products and services to our florist members and
to encourage florists to become members of our network.
Classmates Media
Our marketing efforts for social networking have been comprised almost entirely of Internet advertising designed to increase our free
member base, with most payments to the advertiser made on a per-free member acquisition basis. After we acquire a free member, we seek to
upsell our pay services to the free member. We have also increased the number of social networking members that have signed up for our free
services organically (without incurring online advertising expenditures to attract them) in recent years, primarily through enhancements to our
Web sites to improve search engine optimization and, to a lesser extent, through an increasing base of referrals from existing social networking
members. Our marketing efforts to obtain members for our loyalty marketing service are primarily based on co-registration with other third-
party
services.
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