Enom 2012 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 of the 2012 Enom annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 127

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127

59
The underlying decrease in RPMs was primarily attributable to relatively higher growth in page views driven from mobile
devices which currently generate lower RPMs as compared to those generated from desktop devices.
2011 compared to 2010. Content & Media revenue from our owned and operated websites increased by $46.3 million, or
42%, to $157.1 million for the year ended December 31, 2011, as compared to $110.8 million for the same period in 2010. The
increase was largely due to increased page views and RPMs. Page views on our owned and operated websites increased by
26%, from 8,234 million page views in the year ended December 31, 2010 to 10,378 million page views in the year ended
December 31, 2011. RPMs on our owned and operated websites increased by 13%, from $13.45 in the year ended
December 31, 2010 to $15.14 in the year ended December 31, 2011. The page view increase included the impact of a website
product enhancement we implemented in the second quarter of 2011 with respect to the presentation of photo-centric content
on certain of the Company's owned and operated sites, which did not impact advertising impressions. Excluding the impact of
such change, we estimate that during the year ended December 31, 2011, page views would have increased approximately 19%
and RPMs would have increased 19%, compared to the corresponding prior year. The remaining increase in underlying
page views was due primarily to increased publishing of our platform content on our owned and operated websites. The
underlying increase in RPMs was primarily attributable to the overall increase in page views on eHow, which has higher
RPMs than the weighted average of our other owned and operated websites, as well as an increase in RPMs on the
monetization of our undeveloped websites. In addition, RPM growth was driven by increased display advertising revenue sold
directly through our sales force during the year ended December 31, 2011 as compared to 2010. On average, our direct display
advertising sales generate higher RPMs than display advertising that we deliver from our advertising networks, such as Google.
Content & Media Revenue from Network of Customer Websites
2012 compared to 2011. Content & Media revenue from our network of customer websites for the year ended
December 31, 2012 increased by $19.5 million, or 40%, to $67.9 million, as compared to $48.4 million in the same period in
2011. The increase was largely due to growth in both page views and RPMs. Page views on our network of customer websites
increased by 1,553 million, or 9%, from 17,436 million page views in the year ended December 31, 2011, to 18,989 million
pages viewed in the year ended December 31, 2012. The increase in page views was due primarily to the acquisition of
IndieClick on August 8, 2011, which contributed approximately 7.5 billion page views during the year ended December 31,
2012 compared to approximately 3.1 billion in 2011 as well as growth in content channel arrangements where we deploy our
content to third party customer websites. These increases were partially offset by a decrease in reported page views associated
with our social media customers. RPMs increased 29% from $2.77 in the year ended December 31, 2011 to $3.58 in the year
ended December 31, 2012. The increase in RPMs was largely due to higher revenue earned under the premium multi-channel
initiative with YouTube, growth in content channel arrangements and the decline in page views from lower yielding social
media customers.
2011 compared to 2010. Content & Media revenue from our network of customer websites for the year ended
December 31, 2011 increased by $6.2 million, or 15%, to $48.4 million, as compared to $42.1 million in the same period in
2010. The increase was largely due to growth in page views, offset by a decline in RPMs. Page views on our network of
customer websites increased by 4,281 million, or 33%, from 13,155 million page views in the year ended December 31, 2010,
to 17,436 million pages viewed in the year ended December 31, 2011. The increase in page views was due primarily to the
acquisition of IndieClick on August 8, 2011, which contributed 3.1 billion page views during the period, growth in publishers
utilizing our social media applications and growth in content channel arrangements where we deploy our content to third party
customer websites. RPMs decreased 13% from $3.20 in the year ended December 31, 2010 to $2.77 in the year ended
December 31, 2011. The decrease in RPMs was largely due to a mix shift toward lower RPM page views such as IndieClick
and our social media customers, as well as slight declines in advertising yields from our advertising networks relating to our
customers' undeveloped websites.
Registrar Revenue
Registrar revenue for the year ended December 31, 2012 increased $14.8 million, or 12%, to $134.2 million compared to
$119.4 million for the same period in 2011. The increase was largely due to an increase in domains, which were attributable in
large part to an increased number of new domain registrations and domain renewal registrations in 2012 compared to 2011, as
well as an overall increase in our average revenue per domain. The number of domain registrations increased 1.0 million, or
8%, to 13.7 million during the year ended December 31, 2012 as compared to 12.7 million in the same period in 2011. The
increase was driven by new partnerships with large reseller partners and growth from existing resellers. Our average revenue
per domain increased slightly by $0.11, or 1%, to $10.19 during the year ended December 31, 2012 from $10.08 in the same
period in 2011 due in part to an increase in value added services revenue as compared to 2011.