Travelzoo 2007 Annual Report Download - page 59

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North America:
Period
Average Cost per
Acquisition of a New
Subscriber New Subscribers
Subscribers
Removed From
List Balance
Q1 2005 ................. $2.59 659,459 (475,938) 8,329,258
Q2 2005 ................. $2.62 806,734 (533,109) 8,602,883
Q3 2005 ................. $3.19 740,768 (422,868) 8,920,783
Q4 2005 ................. $2.41 729,460 (273,389) 9,376,854
Q1 2006 ................. $2.54 714,643 (317,947) 9,773,550
Q2 2006 ................. $2.11 737,735 (532,676) 9,978,609
Q3 2006 ................. $1.86 491,524 (327,471) 10,142,662
Q4 2006 ................. $1.56 373,559 (288,883) 10,227,338
Q1 2007 ................. $2.61 730,063 (345,896) 10,611,505
Q2 2007 ................. $3.03 552,488 (335,304) 10,828,689
Q3 2007 ................. $3.92 385,408 (255,008) 10,959,089
Q4 2007 ................. $3.78 279,967 (242,822) 10,996,234
Europe:
Period
Average Cost per
Acquisition of a New
Subscriber New Subscribers
Subscribers
Removed From
List Balance
Q3 2005 .................. $1.65 127,857 (5,577) 140,153
Q4 2005 .................. $2.02 174,514 (16,898) 297,769
Q1 2006 .................. $2.15 143,666 (16,831) 424,604
Q2 2006 .................. $2.69 129,438 (34,070) 519,972
Q3 2006 .................. $1.23 126,566 (29,794) 616,744
Q4 2006 .................. $2.94 69,489 (30,943) 655,290
Q1 2007 .................. $3.89 159,439 (31,350) 783,379
Q2 2007 .................. $4.43 206,003 (39,690) 949,692
Q3 2007 .................. $2.96 331,903 (32,689) 1,248,906
Q4 2007 .................. $5.85 165,781 (33,357) 1,381,330
Asia Pacific:
Period
Average Cost per
Acquisition of a New
Subscriber New Subscribers
Subscribers
Removed From
List Balance
Q2 2007 .................... $2.46 1,068 (4) 1,064
Q3 2007 .................... $2.23 42,106 (138) 43,032
Q4 2007 .................... $2.90 180,446 (9,013) 214,465
In North America, we have noted a general trend of increasing cost per new subscriber over the last few years,
driven by a gradual increase in online advertising rates by our media suppliers as well as increased activity from
competitors using similar forms of online advertising for their own marketing efforts. The decline in new subscriber
acquisition costs in North America in Q3 2006 was impacted by a credit received from a vendor in the amount of
$170,000.
In Europe, we see a large fluctuation in the average cost per new subscriber. The average cost fluctuates from
quarter to quarter and from country to country.
We began operations in Asia Pacific in April 2007 and started signing up new subscribers in China, Hong
Kong, Japan and Taiwan.
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