Saturday, May 17, 2008

iMedia: United Online


I just finished my first iMedia event, a dinner hosted by United Online. The dinner itself was very low sell (a wise move for a Saturday night,) but the back of the invitation really got me to thinking. United Online, in case you live under a rock, is a collection of web businesses including:

Classmates.com: The site that can put you in touch with the people of your past. Built on a subscription model and an extensive email sponsorship program.

NetZero and Juno: Value-priced ISPs that essentially trade consumers lower dialup service for liberal privacy policies that enable marketers to get insights and precise BT.

MySite: A web hosting and site builder offering not unlike parts of register or GoDaddy, but less expensive.

Names Database: Classmates broadened into a searchable database to find people you know or want to know.

MyPoints: The loyalty cum marketing platform.

FTD: They of flowers fame.

At first glance, it seems an odd collection of businesses. But look closer, and you begin to see the essence of the new web – the database and behavioral marketing. United Online has, through its various businesses, a massive collection of people’s profiles that could prove extremely useful for marketers. Whether as a research platform or as BT-enabled ad and marketing platforms.

Naturally the amount and types of info that they have from these disparate businesses varies, but in sum you can see how their core is data. With MyPoints, they probably have access to people’s bloodtypes ( ;-) ) while with Classmates considerably less. But United Online is widely considered one of the richest database companies around that is marketer friendly. Definitely an option to consider next time you want research or BT.

One interesting aspect of their businesses is to consider the health and stage in the product life cycle. A look at their annual report demonstrates steady declines in dial-up ISPs, but very strong growth in selling premium subs to Classmates. And the recent acquisition of FTD adds another interesting layer to their operations. And I’m guessing that being a data delivery device for florists is about as profitable as would be printing money. Attract eyeballs, match orders to florists, get a big cut. Good eatin’.

United Online makes solid money too, so the model seems to have some merit.

Sort of a new definition of synergies in what otherwise looks like a mapcap collection of stuff. But perhaps Untied Online is like McDonalds, which is really a real estate company that sells burgers.

United Online is a data company that provides a variety of disparate ancillary services. They serve a nice bowl of chili, too, and for that and the thoughts their company has driven for me tonight, I am thankful.

Thanks for reading, and don't forget to write.

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