Classmates.com 2010 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, retailers, and loyalty programs such as airlines, credit card companies and hotel chains; database
marketing to existing consumer customers featuring 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 advertising; Internet marketing, including the use of social media and social gaming properties; and cross-marketing to the large base
of members registered for United Online services, including Memory Lane, 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.
Content & Media
Historically, our marketing efforts were 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 registration acquired through the campaign. Going forward, we plan to
market our new Memory Lane services through various media, including television, print and Internet advertising as well as other distribution
channels. We intend to focus our marketing efforts to drive traffic to the Memory Lane website, with users visiting the website not being
required to register for our services unless they desire to engage in certain activities. We currently intend to continue to focus our marketing
efforts for our international online nostalgia services on acquiring free member registrations. 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 members to call our toll-free telephone numbers to purchase our services, or to visit our
websites 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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