ServiceMagic 2011 Annual Report Download - page 10

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Table of Contents
reviews and user-generated content and related information. Citysearch.com is a comprehensive directory of local business listings and related
information across most verticals of businesses in the United States. InsiderPages.com publishes content regarding professional service providers
based in the United States. Urbanspoon.com publishes content focused exclusively on restaurants and dining in North America, the United
Kingdom and Australia.
Advertising Services. CityGrid Advertising is sold to businesses through direct sales and resellers. In the case of direct sales, we sell
CityGrid Advertising directly to businesses through field sales teams in major metropolitan areas within the United States, as well as through in
house sales teams catering to various types of advertisers ( i.e. , local businesses, businesses covering multiple regions or with multiple locations
and advertising agencies) and an online self-enrollment model. CityGrid Advertising is also sold through resellers (third parties with their own
independent advertising sales forces). CityGrid Advertising is then published on CityGrid Properties.
Revenue. CityGrid Media revenue is derived primarily from the sale of CityGrid Advertising. In the case of direct sales, advertising is
sold primarily pursuant to a pay-for-performance-based model. Under this model, local businesses pay CityGrid Media a fee each time their
enhanced business listing (or select information from such listing) is viewed on a CityGrid Property or a user calls a metered number to reach a
business. In the case of resellers, advertisers pay resellers for CityGrid Advertising, which resellers in turn share the revenue received with
CityGrid Media pursuant to a variety of models, the specifics of which vary by reseller and the substantial majority of which have some
performance-based element.
When we publish CityGrid Advertising on our owned and operated CityGrid Properties, we retain all of the revenue paid to us by our direct
sales customers and all of the amounts paid to us by our resellers. When CityGrid Advertising is published and viewed by an end user on a third
party CityGrid Property, we share the related revenue we receive with the applicable third party CityGrid Property. Revenue is also derived from
our sale of local merchant and national display advertising on owned and operated CityGrid Properties on a per impression and fixed fee basis.
Competition. The markets for local business advertising and content are highly competitive and diverse. We primarily compete with
online and offline local and national directories and online and mobile advertising services and networks. We also face competition from search
engines and other site aggregation companies that aggregate our content for display on their websites, which interferes with search engine
optimization and marketing efforts designed to drive traffic to CityGrid Properties.
Match
Overview
Through the brands and businesses within our Match segment, we are a leading provider of subscription-based and advertiser-supported
online personals services in the United States and various European and Latin American jurisdictions abroad. We provide these services through
websites that we own and operate in twenty-five countries, in seven languages and on four continents, as well as through our mobile
applications. Through Match, we own an 81% stake in Meetic, a European online dating company based in France through which we provide
online personals services in certain European jurisdictions. As of December 31, 2011, we collectively provided online personals services to
approximately 2.7 million subscribers.
In February 2011, we acquired OkCupid, an advertiser-supported online personals service in the United States. During the third quarter of
2011, we increased our ownership stake in Meetic to 81% and acquired a 20% interest in Zhenai Inc., a leading provider of online matchmaking
services in China. We are also the exclusive provider of subscription-based personals services on Yahoo.com.
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