Juno 2012 Annual Report Download - page 24

Table of Contents
related to the Classmates website and the schoolFeed Facebook application. Such development, integration and implementation involve a number of
uncertainties, including unanticipated delays and expenses and technological problems. New business initiatives, products, services, features,
applications, or functionality also may not be accepted by consumers or commercially successful. We cannot assure you that we will be successful in
such development, integration and implementation efforts, including those related to the NetZero 4G mobile broadband service, our high school
yearbook initiatives or the schoolFeed Facebook application, or that any new business initiatives, products, services, features, applications, or
functionality will be accepted by consumers or commercially successful. If our development, integration and implementation efforts are not successful,
or such new business initiatives, products, services, features, applications, or functionality are not accepted by consumers or commercially successful,
our key metrics and financial results could be materially and adversely impacted.


We spend significant resources marketing our brands, products and services. We rely on relationships with a wide variety of third parties,
including Internet search providers such as Google, Internet advertising networks, co-registration partners, retailers, distributors, and direct marketers,
to source new customers and to promote or distribute our products and services. In addition, in connection with the launch of new products or services,
such as those related to the NetZero 4G mobile broadband service, we may spend a significant amount on marketing, including through television
advertising. With any of our brands, products and services, if our marketing activities are inefficient or unsuccessful, if important third-party
relationships or marketing strategies, such as Internet search engine marketing and search engine optimization, become more expensive or unavailable,
or are suspended or terminated, for any reason, if there is an increase in the proportion of consumers visiting our websites or purchasing our products
and services by way of marketing channels with higher marketing costs as compared to channels that have lower or no associated marketing costs, or if
our marketing efforts do not result in our products and services being prominently ranked in Internet search listings, our key metrics and financial
results could be materially and adversely impacted.

Advertising revenues are a key component of revenues and profitability for our Content & Media and Communications segments. Factors that
have caused, or may cause in the future, our advertising revenues to fluctuate include, without limitation, changes in the number of visitors to our
websites, active accounts or consumers purchasing our products and services, the effect of, changes to, or terminations of key advertising relationships,
changes to our websites and advertising inventory, changes in applicable laws, regulations or business practices, including those related to behavioral or
targeted advertising, user privacy and taxation, changes in business models, changes in the online advertising market, changes in the economy,
advertisers' budgeting and buying patterns, competition, and changes in usage of our services. Decreases in our advertising revenues are likely to
adversely impact our profitability.
Advertising revenues generated by our Content & Media and Communications segments generally have been declining, when compared to prior
periods, and may continue to decline in the future as a result of various factors, including, without limitation, the risks and uncertainties discussed
above, in other risk factors, and elsewhere in this Annual Report on Form 10-K. Any or all of the above factors have caused, and could continue to
cause, our advertising revenues and profits to significantly decline in the future.
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