Classmates.com 2009 Annual Report Download - page 16

Table of Contents
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 our floral network members; attracting new members to our floral network; and marketing our services to alternative
channels such as supermarkets and mass merchants. 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 and optimization;
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; television and radio advertising; and cross-marketing to the large base of consumers registered to United Online services, including
Classmates, MyPoints, NetZero, and Juno.
Our marketing efforts for our floral network business include: member appreciation and training events for our floral network 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 floral network members. By enhancing the FTD and Interflora
brands, we increase the possibility that a consumer will place an order directly with one of our floral network members since floral retailers
frequently highlight their association with our floral network in their marketing efforts. FTD also employs a dedicated sales force to market our
products and services to our floral network members and to encourage other floral retailers to become members of our floral 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 third parties determined based on fees per free member acquired through the campaign. 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 who
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 online loyalty marketing service are primarily based
on co-registration with third-party services.
Communications
Our Communications segment's marketing efforts are focused primarily on attracting pay accounts, primarily dial-up Internet access
accounts; building our NetZero brand; and cross-selling our other services to existing accounts. These marketing efforts include distribution
arrangements with retailers and personal computer manufacturers; advertising on the Internet and television; and direct marketing campaigns.
These activities are designed to drive prospective accounts to call our toll-free telephone numbers to purchase our services, or to visit our Web
sites and download our software. In most distribution arrangements, we pay a fee for each new pay account referred to us by the retailer or
personal computer manufacturer.
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