Enom 2012 Annual Report Download - page 10

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5
so that our content is seamlessly integrated on sections of their websites. Our content channel offerings are designed to
generate incremental traffic and revenue for our customers.
In addition, YouTube is a major distributor of our video content, and our videos on YouTube have been viewed more than
4 billion times to date. We maintain several video channels on YouTube, from our eHow-branded channel to three premium
channels under a content production agreement we entered with Google in the fourth quarter of 2011.
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 desktop and mobile-optimized websites to maximize revenue and ad management
infrastructures to manage multiple ad formats and control ad inventory. We also have direct sales teams that sell display, rich
media and innovative advertisements as well as undeveloped websites.
We deploy our monetization platform to our owned and operated websites, our network of customer websites and our
portfolio of over 500,000 undeveloped websites as well as to undeveloped websites owned by our customers. Consistent with
other performance-based advertising programs, we enter into revenue-sharing arrangements with website publishers that utilize
our system of monetization tools.
Social Media Applications
Our integrated social media applications for publishers and brands, including Pluck and CoveritLive, help drive audience,
insights and revenue. Companies and website publishers 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, reward badges, groups and messaging. Through our social media products,
websites can bridge user actions, identities and relationships to leading social networks such as Facebook.
Registrar Service Offering
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 15 million domain names under management as of January 31, 2013. We also acquired
Name.com in the fourth quarter of 2012 to strengthen our retail registrar service offering. Name.com, which focuses on
individual and small business customers, had approximately 1.5 million domain names under management as of December 31,
2012. Through eNom, we provide domain name registration services and related value-added services to resellers, including
small businesses, 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 wholesale 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 suite of products through
their own website.
Through our Registrar service offering, 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 wholesale and retail
registrars. Our wholesale and retail registrars serve 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. In addition, if a domain name is currently unavailable,
customers can pre-order the domain name to the extent that it becomes available in the future.
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.