Chegg 2015 Annual Report Download - page 46

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Table of Contents
7
Mobile Solutions. We have mobile applications on Apple iOS and Google Android. Our mobile apps are built as
hybrid applications leveraging the Chegg application programming interface (API) and server-side HTML5. We
also maintain a mobile version of our website: m.chegg.com. Taking advantage of capabilities unique to the mobile
platform, we offer some functionality on mobile that is not available on our website, such as textbook barcode
scanning for price comparisons, Chegg Flashcards and Chegg Textbook Solutions.
Open Platform. We have established a proprietary API layer that enables us to extend our product and service
offerings to additional, relevant business partners. We have enhanced our technology to enable Chegg student
experiences to be consumed on other websites or portals. Internships.com, which we acquired in 2014, began
offering its services through this API layer in December 2013. We have established four other use cases and have
applied unique technology to each case, with the aim of providing students with access to relevant products and
services beyond those that we have developed or provided on our website, including native mobile apps, hub apps,
bridge to third-party tools, an externalizing catalog and Platform-as-a-Service.
Content Conversion Platform. We have developed a proprietary set of technologies that ingests each publisher’s
unique source files and creates HTML5-based documents. Our web-based eTextbook Reader, which is embedded
with digital rights management, allows us to provide our content across technology platforms, have a deep
understanding of how content is consumed and deliver content securely.
Real-time Sourcing and Pricing Technologies. We have internally developed proprietary pricing and sourcing
systems which consider market price, content selection and availability, as well as other factors, in determining
price and origin of content and services we offer to students.
Infrastructure. Our technology resides at a major cloud-hosting provider divided between two U.S. regions (East
Coast/West Coast). We use one region for our test/development/stage/failover environment and the other for our
production environment. The architecture is also designed to provide for international expansion if we expand into
new international markets.
Network Security. Our platform includes encryption, antivirus, firewall and patch-management technologies to
help protect our systems distributed across cloud-hosting providers and our business offices.
Internal Management Systems. We rely on third-party technology solutions and products as well as internally
developed and proprietary systems, in which we have made substantial investment, to provide rapid, high-quality
customer service, internal communication, software development, deployment and maintenance.
Customers
In 2015, approximately 3.1 million individuals paid for our services directed at college students up from
approximately 3.0 million in 2014 and 2.4 million in 2013. In 2015, we entered into agreements to provide enrollment
marketing services to over 500 colleges, including public and private colleges. We have conducted national campaigns with a
number of brands attractive to college and high school students. During 2015, we had advertising contracts with approximately
60 consumer brands.
Sales and Marketing
Students
We use several major direct marketing channels relevant to students. We deploy search engine optimization (SEO)
techniques designed to increase the visibility of Chegg.com content in organic, unpaid search engine result listings. We
supplement our SEO efforts through search engine marketing using keyword simulation and bid management tools to analyze
and categorize search keywords, optimize bidding, increase impressions and drive conversion. We also use display marketing to
drive awareness of our brand and services by running display ads on major online and mobile advertising networks, such as
Google Display Network. We integrate our textbook services on affiliates’ websites and work with a large ad network that
recruits individual online affiliates in exchange for pre-determined revenue share or commissions. We utilize three types of
email marketing campaigns: onboarding programs to drive activation and retention, personalized cross-sell campaigns to
deepen engagement and promotional campaigns to drive sales and interests. We use social media to manage organic and paid
programs across top websites, including Facebook, Twitter and YouTube. We also acquire and engage students through content