Classmates.com 2011 Annual Report Download - page 16

Table of Contents
Our marketing efforts for our consumer business include online advertising and marketing, including search engine marketing and
optimization, social media and social gaming, and group-buying programs; co-
marketing and affiliate partnerships, 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; and television advertising.
Our marketing efforts for our floral network business include member appreciation and training events; 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 own 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
Our marketing efforts are 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. In addition, from time to time, we have
used and may, in the future, use, various media, including television, print and Internet advertising. 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 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. In addition, from time to time, we have used and may, in the future, use, various media, including television, print and Internet
advertising.
Sales of Advertising Inventory
We have an internal sales organization dedicated to selling our Internet advertising products and services. This group works with internal
media operations personnel dedicated to serving and monitoring the performance of our advertising initiatives. While we derive a portion of our
advertising revenues from transactions entered into directly with advertisers and their agencies, particularly within our online loyalty marketing
service, we sell a significant portion of our advertising inventory through third-party advertising resellers.
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