Enom 2014 Annual Report Download - page 8

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• Demand Vertical Network. Our network of niche properties is comprised of websites focused on specific topics or
interests, such as golf, hiking, gardening, automotive and games, where people can learn more about their interests and
share them with like-minded people.
Monetization. We have developed a multi-faceted, proprietary monetization platform incorporating advertising networks,
including Google AdSense. We use a series of sophisticated algorithms and proprietary methods to present visitors with relevant links
and advertisements that can be dynamically optimized to improve monetization performance. Our system of monetization tools also
includes yield optimization systems that continuously evaluate the performance of advertisements on desktop and mobile-optimized
websites in order to maximize revenue, while also utilizing ad management infrastructures that manage multiple ad formats and
control ad inventory.
For monetization of our display ad inventory, our programmatic media buying platform, Demand360, automates the buying and
selling of ad inventory utilizing third-party technology. Demand360 matches advertisers looking for specific ads in connection with
their campaign goals with the inventory available on our owned and operated properties in real time. We also create operational
efficiencies by selling our premium display ad inventory directly to advertisers and decreasing overhead, while streamlining ad
planning and buying and managing media campaigns through the use of technology.
We deploy our monetization platform to our owned and operated online properties and online properties operated by our
customers. Consistent with other performance-based advertising programs, we enter into revenue-sharing arrangements with
customers that utilize our system of monetization tools.
Content Solutions. Our Content Solutions service helps publishers, brands and advertisers develop a comprehensive and
integrated online content strategy. We provide our customers with topically relevant custom content, advise on distribution and
publishing strategies, and track and measure client objectives to optimize content across formats and devices. The content we provide
spans across text articles and blogs, videos, photography and designed visuals such as slideshows, infographics and animated GIFs.
The content can either be acquired outright or licensed, usually via revenue share agreements. We have increased our investment in
our Content Solutions service over the past two years and intend to continue to expand this service offering in the future.
Marketplaces
Our marketplace offerings include Society6, which we acquired in June 2013, and Saatchi Art, which we acquired in August
2014. During fiscal 2014, we expanded our marketplace offerings in several ways, including our acquisition of Saatchi Art, the
introduction of new products on Society6 and increasing the mobile presence of our platforms with the launch of a mobile application
for Saatchi Art and by optimizing the mobile experience on Society6. Our online marketplace platforms provide consumers with both
web and mobile tools to discover a large selection of original artworks and designs created by a leading global artist community of
over 175,000 artists across both sites. Our marketplaces also empower artists to reach a global audience of art lovers and earn a living
pursuing their passion, while we handle various logistics such as coordination of print-on-demand production, global shipping and
payment processes. We believe that our marketplaces are distinguished by the high quality products and superior customer service we
provide to both artists and buyers.
Society6. Society6 provides artists with an online commerce platform where they can feature and sell their original designs on a
wide variety of lifestyle products, including art prints, phone and tablet cases, t-shirts and home décor products. Artists post their
designs, set the price for art prints, and select other products within the Society6 product portfolio on which the design can be sold.
After a product is purchased, we utilize third-party vendors to produce, package and ship the product directly to the buyer. As of
December 31, 2014, there were approximately 130,000 active artists on Society6, an increase of more than 50% from a year earlier.
There are now more than two million unique designs available across the Society6 product portfolio, a 60% increase year-over-year.
During 2014, Society6 customers came from over 100 countries and approximately 30% of Society6’s users accessed its services via
mobile devices.
Saatchi Art. Saatchi Art is an online art gallery that provides a global community of artists a curated environment in which to
exhibit and sell their artworks, including paintings, drawings, sculptures and photographs, directly to customers around the world.
There are currently more than 500,000 original, unique artworks created by over 50,000 artists available on the Saatchi Art platform.
In addition, artists can choose to sell prints of the artworks they post on Saatchi Art and we contract with third-party vendors to
produce and ship the prints directly to the purchaser. Saatchi Art customers are located in over 80 countries and approximately 20% of
Saatchi Art’s customers have made repeat purchases, evidencing the high quality of the artwork and their purchasing experience.