Earthlink 2003 Annual Report Download - page 6

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continues to increase and as we continue our efforts to expand our broadband footprint and the variety of access methods we use to deliver
broadband services.
Web hosting
We lease server space and provide web hosting services to companies and individuals wishing to have an Internet or electronic commerce
presence. For the year ended December 31, 2003, web hosting revenues were $49.9 million, or 3% of total revenues. We had approximately
161,000 web hosting accounts at December 31, 2003.
Content, commerce and advertising
We generate content, commerce and advertising revenues by leveraging the value of our customer base and user traffic; through paid
placements for searches, powered by the Google™ search engine; fees generated through revenue sharing arrangements with online partners
accessed through our properties; commissions received from partners for the sale of partners' services to our subscribers; and sales of
advertising on our various online properties, such as the Personal Start Page. Our content, commerce and advertising revenues were
$25.9 million, or 2% of total revenues, for the year ended December 31, 2003.
3
Marketing Channels
Our sales and marketing efforts consist of the following programs:
Advertising. We advertise our services in print, billboard, electronic and broadcast media. During the fall of 2003, we launched a new
advertising campaign featuring the tagline, "EarthLink Revolves Around You
SM
." The campaign highlights EarthLink's suite of online tools
and services which are designed to enhance the customer's overall experience. The campaign includes national and regional television, radio,
print and online ads.
Direct Marketing. We promote our services directly to customers in the form of direct mail offers, which generally advertise a free or
discounted trial period to attract consumers to sign up for our services, and through promotional inserts in packages, periodicals and
newspapers.
Original Equipment Manufacturers. We have marketing arrangements with a number of leading hardware and software manufacturers
to include our Internet access software pre-installed on or included with their products. Our hardware and software manufacturing partners
include, among numerous others, Apple Computer, Dell, Hewlett Packard and IBM.
Sprint Partnership. We have a marketing relationship with Sprint Corporation ("Sprint"). During the year ended December 31, 2003,
our relationship with Sprint generated approximately 10% of our total gross organic subscriber additions.
Retail. We market our products and services through retail outlets such as Best Buy, Circuit City, RadioShack, Micro Center, Staples,
Fry's and OfficeMax.
Affinity Marketing. Our affinity marketing partners include many AAA clubs, AARP and several airlines including Delta, Northwest
and Southwest. Partners typically bundle our Internet access software with their own goods or services to create a package that promotes
EarthLink to potential customers.
Member Referral Program. We believe existing customers are among our most important marketing tools. We currently waive one
month of standard Internet access service fees for each customer who refers a new customer to EarthLink's service.
Customer Service and Technical Support
We believe reliable customer service and technical support are critical to attracting new and retaining existing customers. We provide the
following services for our premium-priced narrowband, broadband and wireless Internet access subscribers:
• toll-free, live telephone assistance available seven days a week, 24 hours a day;
• email-based and live chat assistance available seven days a week, 24 hours a day;
• help sites and Internet guide files on the EarthLink web site; and