NetZero 2011 Annual Report Download - page 15

Table of Contents
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 generates advertising revenues primarily from inclusion of advertisements on emails to consumers, for which revenue is recognized
when the advertisement is run, and from referrals of consumers to third-party websites and services, for which revenue is recognized when the
related performance criteria is met. Previously, FTD's advertising revenues were primarily from post-transaction sales generated when FTD
consumers were presented with third-party offers immediately after completing a purchase on the www.ftd.com and www.interflora.co.uk
websites. FTD terminated its domestic post-transaction sales agreement in January 2010 and 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. Advertising inventory
on our nostalgia websites includes text and graphic placements on the user home page, profile page, class list page, and most other pages on 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.
Sales and Marketing
FTD
Our marketing efforts within the FTD segment are primarily focused on generating 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.
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