ServiceMagic 2012 Annual Report Download - page 11

Table of Contents
offer or promote installation services. We believe that our ability to compete successfully will depend primarily upon the following factors:
CityGrid Media
Overview.
CityGrid Media is an online media company that owns and operates CityGrid, an advertising network that integrates local content
and advertising for distribution to both affiliated and third party publishers across web and mobile platforms, as well as proprietary websites,
such as Citysearch.com and Urbanspoon.com, through which consumers can access local merchant information and reviews online. In August
2012, CityGrid Media acquired Felix, a pay1per1call advertising service.
CityGrid. Through CityGrid, we aggregate local business listings, advertising and content, including both editorial and other user-generated
content, which we then distribute to publishers across web and mobile platforms. These publishers include third party websites and mobile
applications, as well as the websites and applications we own and operate described below.
Owned and Operated Properties.
CityGrid Media owns and operates Citysearch.com, InsiderPages.com and Urbanspoon.com, websites that
connect consumers with local businesses by providing consumers with free access to local business profiles, customized messages from local
businesses, 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. CityGrid also offers related mobile applications in the case of Citysearch.com and Urbanspoon.com.
Revenue. CityGrid Media revenue is derived from the sale, both through a direct sales force and reseller relationships, of local and national
online advertising distributed through the CityGrid advertising network. In the case of direct sales, the advertising is primarily pay-for-
performance based, pursuant to which local businesses pay CityGrid each time an advertisement is viewed or each time a user calls a metered
number. In the case of resellers, a variety of advertising models are utilized.
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 properties and applications affiliated with the CityGrid advertising network.
Media
Our Media segment consists primarily of Vimeo, Electus, Connected Ventures (which operates CollegeHumor Media and Notional),
News_Beast (formerly The Newsweek/DailyBeast Company) and DailyBurn.
Vimeo is a leading video hosting platform for creative professionals and consumers, offering video creators the tools required to create,
share, distribute and monetize their content online. We believe that Vimeo attracts a distinct audience with its best-in-
class, high definition video
player, multi-pass video encoding and clean, uncluttered advertising experience. Vimeo's revenue is derived primarily from subscription product
offerings, as well as advertising.
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• the size, quality (as determined, in part, by reference to our pre-screening efforts and customer ratings and reviews), diversity and
stability of our network of home services professionals and the quality of the services provided by these professionals;
• our continued ability to deliver service requests that convert into revenue for our network of home services professionals in a cost-
effective manner;
•
the functionality of our websites and mobile applications and the attractiveness of their features and our services generally to consumers
and home services professionals, as well as our ability to introduce new products and services that resonate with consumers and home
services professionals; and
•
our ability to build and maintain awareness of, and loyalty to, the HomeAdvisor brand among consumers.