Classmates.com 2010 Annual Report Download - page 15

Table of Contents
products revenues from our Communications segment and we do not currently generate products revenues from our Content & Media segment.
Advertising Revenues
We provide advertising opportunities 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 and the Internet. We also offer audience-based media solutions, targeting
technologies, website sponsorships, and website integrations in order to provide effective solutions. Our audience-based media solutions give
advertisers the ability to more accurately market across the Internet to millions of registered accounts by combining demographic registration
data with contextual, offline purchasing, behavioral, and psychographic data.
FTD
FTD has historically generated advertising revenues primarily from post-transaction sales generated when FTD and Interflora consumers
were presented with third-party offers immediately after completing a purchase on the www.ftd.com and www.interflora.co.uk
websites. FTD has
not had a domestic post-transaction sales agreement since January 2010 and terminated its international post-transaction sales agreement in
January 2011.
Content & Media
Our online nostalgia services generate advertising revenues primarily from display advertisements on our websites. Prior to 2010,
advertising revenues were generated primarily from post-transaction sales occurring after members completed the pay account registration
process. Advertising inventory on our nostalgia websites includes graphic placements across most pages of our websites. We are able to target
the advertising delivered to most of our members while they are on our websites based on a wide variety of factors, including age, gender,
demographic data, affiliations, profile data, and postal code. We sell a significant portion of our advertising inventory through third-party
advertising resellers.
Our online loyalty marketing service 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, but not limited to, 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, search, email,
and text-link opportunities. We also use targeting technologies and website 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
associated with our Internet access and email services. We host and customize the initial website displayed to our users. This website, or "start
page," displays sponsored links to a variety of content, products and services, including Internet search as well as text and display advertising
placements. We also display a toolbar on users' screens throughout their online access sessions that is generally visible regardless of the
particular website they visit. The toolbar contains Internet search functionality and a variety of buttons, icons and drop-down menus.
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