ServiceMagic 2011 Annual Report Download - page 8

Table of Contents
pages on social networks; Retrogamer, through which users can access their favorite classic arcade, sports and action games directly from their
web browsers; and CouponAlert, through which users can access coupons and online promotions. We also develop, market and distribute
toolbars that target users with a passionate interest in select vertical categories (such as movies, television, sports and gossip, among others). In
addition to a search box and related technology, these toolbars provide users with the ability to access primarily third party online content and
services relating to various vertical categories directly from their web browsers. We distribute these toolbars and applications directly to
consumers free of charge and we refer to them as Mindspark's "B2C operations."
We also market and distribute Ask.com branded and custom toolbars to third parties through the Ask Partner Network, a leading provider of
custom applications and search solutions to software, media and other companies. Ask Partner Network works closely with third parties to
design and develop customized browser-based applications, which are highly-targeted, custom toolbars that, when bundled with third party
applications and websites, extend services into web browsers and enhance end-user experiences online. We refer to toolbars and applications
marketed and distributed through Ask Partner Network as Mindspark's "B2B operations."
Destination Search and Other Websites
We also operate a number of destination websites and portals through which we provide search and additional services, including: Ask.com,
which provides general search services, as well as question and answer services that provide direct answers to natural-language questions;
Dictionary.com, which provides online dictionary, reference, educational and learning services; IWON.com, which offers a variety of casual
games and sweepstakes; Girlsense.com, which provides a virtual fashion community for girls and teens; MyWebSearch.com, which provides
users with home page and search services; MyWay.com, which is free from banner, pop-up and rich-media ads and through which we provide
general search and e-mail services; and Excite.com, a content-rich portal that aggregates news, sports, weather and entertainment content.
Mobile Applications
We market and distribute a number of mobile applications through which we provide search and additional services, including: the Ask.com
iPhone, iPad and Android applications, which provide general search and natural-language question and answer services; the Dictionary.com
iPhone, iPad and Android applications, which provide dictionary, reference, educational and learning services; and various DailyBurn iPhone,
iPad and Android applications, which track nutritional and fitness information and activities.
Revenue
Substantially all of the revenue from our Search segment is derived from online advertising, with most of this revenue attributable to our
paid listing supply agreement with Google. When a user submits a search query through properties and services within our Search segment and
clicks on a Google paid listing displayed in response to the query, Google bills the advertiser that purchased the paid listing directly and shares a
portion of its related paid listing fee with us, which we in turn either retain in its entirety or share with third parties. In some cases, Google does
not charge advertisers unless our user, after clicking on the paid listing, also takes certain actions on the advertiser's website. To a lesser extent,
revenue is also derived from the sale of display and other advertising pursuant to a variety of advertising models, including on a fixed fee per
impression, cost-per-click and cost-per-action basis and the syndication of search results generated by Ask-branded destination search websites.
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