Enom 2015 Annual Report Download - page 17

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15
Content & Media
We face intense competition for our Content & Media service offering from a wide range of competitors. We
compete for advertisers and customers on the basis of a number of factors including return on marketing expenditures,
price of our offerings and the ability to deliver large amounts, or precise types, of segmented customer traffic. Our
current principal competitors include:
x Online Media Properties. We compete with numerous Internet media companies, some of which have much
larger audiences and financial resources than we have, for online marketing budgets. We also compete with
companies and individuals that provide specialized consumer information online, including through enthusiast
websites, message boards and blogs. These competitors compete with us across several areas of consumer
interest including do-it-yourself, health and healthy living, home and garden, fashion and beauty, crafts,
automotive and humor.
x Social Media Outlets. We compete with social media outlets such as Facebook, Snapchat and Pinterest, where
brands and advertisers are focusing a significant portion of their online advertising spend in order to connect
with their customers.
x Distributed Content Creation Platforms. We compete with other companies, such as Contently and Skyword,
that provide content marketing services and/or employ a content creation model with aspects similar to our
platform, including the creation of content for third parties.
We may be subject to increased future competition to our Content & Media service offering if any of our
competitors devote increased resources to more directly address the online market for the professional creation and
distribution of content. Many of our current and potential competitors enjoy substantial competitive advantages, such as
greater brand recognition, longer operating histories, substantially greater financial, marketing and other resources,
greater technical capabilities, access to larger customer bases and, in some cases, the ability to combine their online
marketing products with traditional offline media such as newspapers or magazines. These companies may use these
advantages to offer products and services similar to ours at a lower price, develop different products to compete with our
current offerings and respond more quickly and effectively than we can to new or changing opportunities, technologies,
standards or customer requirements. For example, if Google chose to compete more directly with us, we may face the
prospect of the loss of business or other adverse financial consequences due to Google’s significantly greater customer
base, financial resources, distribution channels and patent portfolio. Given the intense competition that our Content &
Media service offering faces, we may be unable to maintain or improve our competitive position or market share.
Marketplaces
Our marketplaces compete with a wide variety of online and brick-and-mortar companies selling comparable
products. Society6 competes with companies, such as RedBubble, Zazzle and Minted, that utilize a print-on-demand
model whereby specialty products are produced and shipped to customers with selected user or artist generated designs
printed on them, as well as small online providers of niche customization services and product offerings. Saatchi Art
competes with traditional offline art galleries, art consultants and other online properties selling original artwork, such as
Artfinder, Artspace, Ugallery and Amazon Art. We expect competition to continue to intensify as online and offline
businesses increasingly compete with each other, and because the barriers to entry into online channels can be low.
Our marketplaces must successfully attract, retain and engage both buyers and sellers to use our platforms. We
believe that the principal competitive factors for our marketplaces include the quality, price and uniqueness of the
products or artworks being offered; the selection of goods and artists featured; the ability to source numerous products
efficiently and cost-effectively with respect to our print-on-demand products; customer service; the convenience and
ease of the shopping experience we provide; and our reputation and brand strength.
Many of our marketplaces’ current competitors have, and potential competitors may have, longer operating
histories, larger customer bases, greater technical capabilities, greater brand recognition, differentiated products and
services, and substantially greater financial, marketing and other resources than we have. These resources may help