Enom 2010 Annual Report Download - page 8

Table of Contents
produced by media companies and Internet portals is often expensive to create and focused on event-driven topics that, given their short useful lives, are
challenging to sell to advertisers for sufficient amounts to justify their production. On the other hand, individuals such as bloggers are able to economically
create and publish niche content, but often lack recognized credibility, production scale and broader distribution and monetization capabilities. These
challenges have had a profound impact on consumers, freelance content creators, website publishers and advertisers who are in need of a solution that
connects this disparate media ecosystem.
We have built a platform with a proprietary set of solutions that we believe addresses the market challenges and unfulfilled needs of online consumers,
freelance content creators, website publishers and advertisers. Our business is comprised of two distinct and complementary service offerings: Content &
Media and Registrar. These service offerings provide us with a unique combination of proprietary technologies and social media tools, extensive audience
reach through our owned and operated websites and our network of customer websites, a qualified community of freelance content creators and access to
proprietary Internet data. We believe these attributes will help us to achieve our mission to fulfill the world's demand for commercially valuable content.
Our Content & Media service offering is engaged in creating media content, primarily consisting of text articles and videos, and delivering it along with
social media and monetization tools to our owned and operated websites and our network of customer websites. We deliver these through our proprietary
Content & Media platform which includes our content creation studio, enterprise-class social media applications and a system of monetization tools designed
to match content with advertisements in a manner that is optimized for revenue yield and end-user experience. We deploy our platform both to our owned and
operated websites, such as eHow, as well as to websites operated by our customers, such as the online versions of the San Francisco Chronicle and the
Houston Chronicle. Additionally, we believe our Registrar customers provide us with a potential opportunity for cross-selling our Content & Media service
offerings to website publishers. Key elements of our solution include:
Content. We create highly relevant and specific online text and video content that we believe will have commercial value over a long useful life.
The process to select the subject matter of the vast majority of our content, or our title selection process, combines automated algorithms with
third-party and proprietary data along with several levels of editorial input to determine what content consumers are seeking, if it is likely to be
valuable to advertisers and whether it can be cost effectively produced. To produce original content for these titles at scale, we engage our robust
community of highly-qualified freelance content creators. Our content creation process is scaled through a variety of online management tools
and overseen by an in-house editorial team, resulting in high-quality, commercially valuable content. Our technology and innovative processes
allow us to produce articles and videos in a cost effective manner while ensuring high quality output.
Social Media. We believe that social interaction and engagement is a core element of the online experience for consumers, online publishers,
retailers and brands. Our enterprise-class social media tools allow websites to add feature-rich applications, such as user profiles, comments,
forums, reviews, blogs and photo and video sharing, and are interoperable with popular social media platforms such as Facebook and Twitter.
Deployed to both our owned and operated websites and to our network of customer websites, our social media products are used by publishers to
drive traffic and increase engagement by facilitating the creation of site-specific communities.
Monetization. Our goal is to deliver targeted placements to advertisers who seek to reach consumers based on the content these consumers are
seeking and discovering. Our platform generates revenue primarily through the sale of online advertisements, sourced through advertising
networks and to a lesser, but growing degree, through our direct advertising sales force. The system of monetization tools in our platform
includes contextual matching algorithms
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