TripAdvisor 2013 Annual Report Download - page 20

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thousand impressions, or CPM, basis. Our display-based advertising products also include a number of
custom-built products including the sponsorship of certain site features and functionality, for example,
Delayed Ad Call, which charges customers only when the ad unit is in a users’ view, as well as certain
customized co-branded features. For the years ended December 31, 2013, 2012 and 2011, we earned
$119 million, $94 million and $86 million, respectively, in revenue from display-based advertising.
•Subscription-Based, Transaction and Other Revenue. Business Listings, is a subscription-based
advertising product offered to hotels, B&Bs and other specialty lodging properties. Managed by our
TripAdvisor for Business team, this advertising product is sold for a flat fee per time period and allows
subscribers to list a website URL, email address and phone number on TripAdvisor-branded websites
as well as to post special offers for travelers. Our Vacation Rentals business consists of our U.S.-based
TripAdvisor Vacation Rentals and FlipKey brands as well as our Europe-based Holiday Lettings, and
Niumba brands. This product is sold to individual vacation property owners and property managers,
either as a flat subscription fee per time period or as a free-to-list commission-based model, to list
properties on our websites. Other revenue consists of making hotel room nights available for booking
on our transactional sites, including our Jetsetter and Tingo brands, as well as content licensing
arrangements with third-party sites. For the years ended December 31, 2013, 2012 and 2011 we earned
$130 million, $81 million and $51 million, respectively, in revenue from subscription-based,
transaction and other revenue.
Strategic Relationships
Click-Based Advertisers
We have click-based advertising relationships with the vast majority of the leading online travel agencies as
well as a variety of other travel suppliers pursuant to which these companies purchase traveler leads from us,
generally on a CPC basis. For the year ended December 31, 2013, our two most significant advertising
customers, Expedia and Priceline (and their subsidiaries), each accounted for more than 10% of our total revenue
and combined accounted for 47% of total revenue. These and our other click-based advertising relationships are
strategically important to us and most can be terminated by the advertiser at will or on short notice.
Content-Related Partnerships
We have a content licensing program utilized by over 850 partners across the world, including hotel chains,
online travel agents, tourist boards, airlines and media sites. TripAdvisor also distributes its content through self-
service HTML widgets, which are used on the websites of hotels, restaurants, attractions and destination
marketing organizations. These products, which are available at no cost in the TripAdvisor Management Center,
allow businesses and destinations to promote themselves by displaying their TripAdvisor ratings, reviews and
awards. TripAdvisor widgets are presently found on more than 100,000 unique domains around the globe,
reaching over 500 million people per month. Partners benefit from our user-generated content, such as reviews,
ratings, photos and traveler forums. In addition, we power review collection for a growing number of partners,
such as Accor Hotels, Wyndham Hotel Group, Best Western and Easytobook.com, enabling them to proactively
collect reviews from their own customers post-stay in their own branded environment. We have also developed
partnerships with mobile carriers and device manufacturers.
Syndication Partners
We also syndicate our click-based advertising to third-party websites. The largest such syndication
relationship is with Yahoo! Travel Guides, pursuant to which we provide “show prices” advertising on the
Yahoo! Travel Guides’ hotel pages. Other syndication partners include Bing and Axel Springer.
Marketing and Promotions
We have established widely used and recognized brands through marketing and promotion campaigns. We
continue to aggressively promote our brands, particularly our flagship brand TripAdvisor. Our marketing
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