Juno 2012 Annual Report Download - page 16

Table of Contents
floral network members and to encourage other floral retailers to become members of our floral network.
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Our marketing efforts are comprised almost entirely of Internet advertising designed to increase our free member base, with most payments to third
parties determined based on fees per free member registration acquired through the campaign. In addition, from time to time, we have used and may, in
the future, use, various media, including television, print and Internet advertising. We currently intend to continue to focus our marketing efforts for our
international online nostalgia services on acquiring free member registrations. Our marketing efforts to obtain members for our online loyalty marketing
service are primarily based on co-registration with third-party services.
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Our Communications segment's marketing efforts are focused primarily on attracting NetZero 4G mobile broadband service accounts; promoting
and enhancing our NetZero brand; and cross-selling our other services to existing accounts. These marketing efforts include direct response television
campaigns; direct marketing campaigns; distribution arrangements with retailers and personal computer manufacturers; and advertising on the Internet.
These activities are designed to drive prospective members to call our toll-free telephone numbers or to visit our websites and purchase our services. In
most distribution arrangements, we pay a fee for each new pay account referred to us by the retailer or personal computer manufacturer.
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We have an internal sales organization dedicated to selling our Internet advertising products and services. This group works with internal media
operations personnel dedicated to serving and monitoring the performance of our advertising initiatives. While we derive a portion of our advertising
revenues from transactions entered into directly with advertisers and their agencies, particularly within our online loyalty marketing service, we sell a
significant portion of our advertising inventory through third-party advertising resellers.
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The industries in which we offer products and services are highly competitive. A summary of competitive factors is set forth below and in "Risk
Factors," which appears in Item 1A of this Annual Report on Form 10-K.
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We compete in the market for flowers and gifts. The consumer market for flowers and gifts is highly competitive and fragmented as consumers can
purchase the products we offer from numerous sources, including traditional local retail florists, supermarkets, mass merchants, gift retailers, and floral
and gift mass marketers. We believe the primary competitive factors in the consumer market are price, quality of products, selection, customer service,
ordering convenience, and strength of brand. The floral network services market is highly competitive as well, and retail florists and supermarkets may
choose from a variety of providers that offer similar products and services. We believe the primary competitive factors in this market are price, order
volume, customer service, services offered, strength of brand, number of members in the network, and fulfillment capabilities. In the U.S., our key
competitors in the consumer market include online, catalog and specialty floral and gift retailers and mass market retailers with floral departments,
including such companies as 1-800-FLOWERS.COM, Inc., Proflowers.com and Teleflora. Our key competitors in the U.S. floral network services
market include providers of online or e-commerce services, retailers and wholesalers of floral-related products and other floral network
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