Enom 2012 Annual Report Download - page 3

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Dear Fellow Shareholders,
I am extremely proud of Demand Media’s accomplishments in 2012. We delivered record financial results, enhanced our content
creation and distribution platform, and positioned our registrar and registry platform to become a leading provider of end-to-end
domain services.
Our unique media platform – a scalable way to discover, create and distribute content – provides a solid foundation for future growth
as we diversify into new distribution channels, new geographies, and new paid content models.
Our leading registrar platform and our new registry technologies position us for leadership in the domain registration services market,
particularly as ICANN’s new generic Top Level Domain (“gTLD”) initiative reshapes the way consumers and businesses think about
personalizing their online destinations.
We are proud to be at the forefront of innovation for both of these exciting growth opportunities, and look forward to expanding our
service offerings and platforms this year.
2012 Accomplishments
Content & Media
During 2012, we strengthened Demand Media’s long-term competitive position and set the stage for future growth by significantly
enhancing our content creation and distribution platform. We focused on higher quality and more engaging content, emphasizing
expert talent, and we expanded the variety of content we produce, such as slide shows, videos, feature articles and mobile-friendly
formats.
Further, we expanded the distribution of our content to a broader range of partners and geographies. We distributed the majority of
new content published in 2012 on our rapidly growing network of content partners and our emerging international sites. This drove
year-over-year page view growth on content channels by nearly six-fold and more than tripled our international site page views.
Our content is also well suited for mobile, which enabled us to significantly improve mobile monetization, growing revenue per
thousand impressions (RPMs) by over 75% throughout the year. We also grew our mobile audience substantially, with mobile driving
26% of visits to our core owned & operated sites by the end of 2012.
These achievements, combined with continued growth of our content library, drove record traffic to our sites. According to
comScore, in March 2013, our websites reached a global audience of over 126 million unique monthly visitors, ranking as the 29th
largest property in the world.
Our content & media business touches 1 in every 3 consumers online in the U.S. every month, providing instruction, advice, and
insight on just about everything they encounter throughout their day. Our goal is simple: serve as a key touch point in people’s lives
by connecting them to content that is personally relevant. We are proud of the progress we have made and even more excited about
the opportunities ahead.
Registrar
In 2012, we positioned our registrar business as a leading player in the upcoming new gTLD market – we expanded our domains
under management and our reseller footprint, added retail registrar capabilities, and applied to become a registry for new gTLDs.
Over the last three years, we grew domains under management by 66% to approximately 15 million names. We currently service
nearly 8,800 resellers, reaching millions of businesses and consumers. At the end of the year, we acquired Name.com to add a direct
retail presence to our service platform. In 2012, we invested substantial time and resources towards our new gTLD growth initiatives.
We filed 26 stand-alone gTLD applications, and share equal rights to an additional 107 gTLDs with a strategic partner. We are also
leveraging our technical know-how to establish ourselves as a leading registry service provider, providing back-end services to other
registries.
We expect to begin to transform our registrar services business into a leading end-to-end domain services provider when the new
gTLDs start launching later this year.
2013 Goals and Objectives
Content & Media
We plan to leverage the power of our expert-driven content creation studio as we seek to more than double our investment in content
in 2013 compared with 2012. We plan to build on our initial success with content channel partners and our emerging international