Classmates.com 2010 Annual Report Download - page 13

Table of Contents
her name. Only All-Access Pass holders are able to see the names of the members who visited their Classmates profile.
• Access to our Classmates maps feature which can generate a map showing the geographic locations, based on zip codes, of the
members in the All-Access Pass holder's high school or other community affiliation.
International. In addition to our Memory Lane website that includes the Classmates service, we operate five international websites that
offer nostalgia services, primarily as a social networking platform to reconnect friends and acquaintances from high school. We operate
StayFriends in Sweden, Germany, Austria, and Switzerland ( www.stayfriends.se, www.stayfriends.de, www.stayfriends.at , and
www.stayfriends.ch , respectively), and Trombi in France ( www.trombi.com ). Similar to the Memory Lane website, each international website
includes free and pay memberships, although the features of our international pay services differ from those of the Memory Lane pay services.
Online Loyalty Marketing
Our online loyalty marketing service, MyPoints, connects advertisers with its members by allowing members to earn rewards points for
engaging in online activities. MyPoints is a free service for consumers who register and provide certain identifying information to receive direct
email marketing and other online loyalty promotions. Members earn points for responding to email offers, taking market research companies'
surveys, shopping online at the MyPoints website (www.mypoints.com) which serves as a shopping portal, searching the Internet through a
MyPoints branded toolbar, playing MyPoints branded online games, and engaging in other online activities. Rewards points are redeemable
primarily in the form of third-party gift cards from over 75 merchants, including, among others, leading retailers, theaters, restaurants, airlines,
and hotels.
MyPoints provides advertisers with an effective means to reach a large online audience. MyPoints uses a variety of criteria, including
personal interests, purchasing behavior and demographic profiles, to create targeted promotions for advertisers. These marketing campaigns are
tailored to meet the goals of the specific advertiser, which are most commonly to generate incremental sales of an advertiser's products or
services, but may also include objectives that do not involve purchase transactions such as generating sales leads or increased traffic on an
advertiser's website. In many cases, MyPoints sends personalized email marketing messages, called Bonusmail, that are directed specifically to
individual MyPoints members to showcase a single advertiser or offer. MyPoints members benefit not only from attractive discounts and other
benefits featured in Bonusmail offers, but also generally receive points for purchases and for clicking through the media links in Bonusmail to
the advertiser's website as well as for other actions taken within a limited time period. We believe the limited-time nature of the Bonusmail
offers adds a sense of urgency to the promotion for the consumer.
All of our online loyalty marketing service revenues are classified as advertising revenues. Advertisers pay us primarily based on
performance measures that include when our MyPoints emails are transmitted to members, when members respond to emails and when members
complete online transactions.
Communications
Our principal Communications pay service is dial-up Internet access, offered under the NetZero and Juno brands. We also offer broadband
services, email, Internet security services, and web hosting services. In total, we had 1.0 million Communications pay accounts at December 31,
2010, of which 0.7 million were dial-up Internet access accounts. Most of our Communications revenues are derived from dial-
up Internet access
pay accounts. For additional information regarding our Communications segment, see Note 2—"Segment Information" of the Notes to the
Consolidated Financial Statements, which appears in Part II, Item 8 of this Annual Report on Form 10-K.
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