Enom 2011 Annual Report Download - page 11

Content Monetization
We have developed a multi-faceted, proprietary system incorporating advertising networks, including Google AdSense, designed to maximize yields.
Our system of monetization tools includes contextual matching algorithms which match advertisements with the content displayed on a website page, yield
optimization systems which continuously evaluate performance of advertisements on websites to maximize revenue and ad management infrastructures to
manage multiple ad formats and control ad inventory. Consistent with other performance-based advertising programs, we enter into revenue-sharing
arrangements with website publishers that utilize our system of monetization tools.
We also have a direct sales force that sells display advertisements across our entire distribution network, spanning both our owned and operated
websites and certain of our customer websites.
Social Media Applications
Our integrated social media applications for publishers and brands help drive audience, insights and revenue. Companies primarily use our social
media applications to add community-building features to their websites and mobile applications. Key capabilities include user profiles, comments, forums,
reviews, real-time blogging, content sharing, media galleries, groups and messaging. Through our social media products, websites can bridge user actions,
identities and relationships to leading social networks such as Facebook.
Registrar Products & Services
We own and operate eNom, the world's largest wholesale registrar of Internet domain names and the world's second largest registrar overall, with over
12.5 million domain names under management as of December 31, 2011. As a wholesaler, we provide domain name registration services and related value-
added services to resellers, including small businesses, large e-commerce websites, Internet service providers and web-hosting companies. These resellers, in
turn, contract directly with domain name registrants to deliver these services. Our Registrar service offering gives resellers the choice of either a highly
customizable API model or a turnkey solution. Our customizable API solution includes a selection of over 300 commands and integrates with third-party
merchant account and billing tools, hosting and email tools as well as other value-added services. Our turnkey reseller solution allows a reseller to quickly
start selling our Registrar service offering products through their own website. We also provide domain name registration and related value-added services
directly to consumers.
The Internet Corporation for Assigned Names and Numbers (“ICANN”) recently authorized the launch of a program for the introduction of new
generic top level domains ("gTLDs"), defined as the "New gTLD Program”. The New gTLD Program's goals include enhancing competition and consumer
choice, and enabling the benefits of innovation via the introduction of a wide range of new gTLDs. We believe that the New gTLD Program will present a
variety of significant potential revenue opportunities commencing in 2013, including operating the back end infrastructure for new gTLD registries, owning
and operating one or more gTLDs and becoming a registry in our own right, as well as registering a greater number of domains over time through our existing
registrar channels.
Through our Registrar, we currently provide the following services to our customers:
Domain Name Look-up and Registration
We offer our customers the ability to search for and register Internet domain names through our Registrar. Our Registrar serves existing and potential
new customers looking to register new domain names or purchase existing domain names and allows customers to renew their existing registered domain
names. Users can search for and identify an available domain name that best fits their needs, and in just a few clicks can claim and register the name. In
addition, we offer customers the ability to transfer the registration of a single domain name or multiple domain names to us from other registrars using our
automated domain name transfer service.
Domain Name System
Our Registrar service offering facilitates a significant portion of the world's domain name system Internet traffic with an average of over 2 billion DNS
queries resolved per day. A DNS query represents the process of translating a domain name requested by an Internet user into the Internet Protocol, or IP,
address, of the device hosting the requested website.
Value-Added Services
In addition to domain name registration services, we also offer a number of other products and services designed to help our customers easily develop,
enhance and protect their domains, including the following:
• third-party website security services, such as Secure Socket Layer, or SSL, certificates;
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