Classmates.com 2009 Annual Report Download - page 15

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Table of Contents
Products Revenues
Products revenues consist of the FTD segment's merchandise revenue and related shipping and service fees for consumer orders, as well as
revenues generated from the sale of containers, point-of-sale systems, cut flowers, packaging and promotional products, and a wide variety of
other floral-related supplies to floral network members. We do not generate products revenues from our Classmates Media segment or our
Communications segment.
Advertising Revenues
We provide advertising solutions to marketers with both brand and direct response objectives through a full suite of display, search, email,
and text-link opportunities across our various properties. We also use targeting technologies, Web site sponsorships and Web site integrations in
order to provide effective solutions.
FTD
FTD advertising revenues consist primarily of revenues that are generated when FTD and Interflora consumers are provided third-party
offers after completing a purchase on the www.ftd.com , www.interflora.co.uk and www.interflora.ie Web sites.
Classmates Media
Our social networking services have historically generated advertising revenues primarily from providing third-party offers to Classmates
paying members after they have completed the pay account registration process and, to a lesser extent, from display advertisements. Advertising
inventory on our social networking Web sites includes text and graphic placements on the user home page, profile page, class list page, and most
other pages on our Web sites. We are able to target the advertising delivered to most of our members based on a wide variety of factors,
including age, gender, demographic data, affiliations, profile data, and zip code. We also sell a portion of our advertising inventory through
third-party advertising resellers.
Our online loyalty marketing services revenues are derived from advertising fees, consisting primarily of fees based on performance
measures, that are generated when emails are transmitted to members, when members respond to emails, when members complete online
transactions, and when members engage in a variety of other activities including games, Internet searches and market research surveys. We sell
marketing solutions to advertisers with both brand and direct response objectives through a full suite of display, email and other advertising
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.
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