COOLSAVINGS, INC.

COOLSAVINGS, INC.

Previous company name
COOLSAVINGS.COM, INC.
Name change date
9/25/2001
Company Overview
CoolSavings, Inc. is an American company engaged in the provision of interactive marketing services to advertisers, their agencies and publishers. The company, formerly known as CoolSavings.com, Inc., was established in December of 1994. Its registered office is located in Chicago, Illinois. The company is a subsidiary of Landmark Communications Inc., a diversified holding company with operations in newspaper publishing and television.
Through its CoolSavings Marketing Network, the company helps clients in the retail, consumer packaged good, financial, education, media and publishing, and other marketing services industries to generate qualified leads, send targeted e-mail, distribute printable and electronic/paperless coupons and build customer loyalty. It further combines transactional data with self-reported demographics and online behavioral data in a system that enables advertisers to target their customers and improve results across the CoolSavings network. For participating partners, the company also provides additional sources of revenue, as well as content to increase visitation and activation at their Web properties.
The company is a leading U.S. interactive marketing services provider for advertisers. Its goal is to make its customers’ lives easier by being their free resource for valuable coupons, discounts and special offers from their favorite brands and stores.
Business Summary
CoolSavings, Inc. provides interactive marketing services to advertisers, their agencies and publishers. The Company, through its distribution network, the CoolSavings Marketing Network, helps clients in the retail, consumer packaged good, financial, education, media and publishing, and other marketing services industries to generate qualified leads, send targeted e-mail, distribute printable and electronic/paperless coupons and build customer loyalty. In addition, CoolSavings combines transactional data with self-reported demographics and online behavioral data in a system that enables advertisers to target their customers and improve results across the Company’s network. For participating CoolSavings Marketing Network partners, the Company also provides additional sources of revenue, as well as content to increase visitation and activation at their Web properties.
Description and history
CoolSavings, Inc., incorporated in December 1994, provides interactive marketing services to advertisers, their agencies and publishers. The Company, through its distribution network, the CoolSavings Marketing Network, helps clients in the retail, consumer packaged good (CPG), financial, education, media and publishing, and other marketing services industries to generate qualified leads, send targeted e-mail, distribute printable and electronic/paperless coupons and build customer loyalty. Through the CoolSavings Marketing Network, CoolSavings reached approximately 20 million consumers during the year ended December 31, 2004, across its network of partner sites and its Web property, coolsavings.com. In addition, the Company combines transactional data with self-reported demographics and online behavioral data in a system that enables advertisers to target their customers and improve results across the Company’s network. For participating CoolSavings Marketing Network partners, CoolSavings also provides additional sources of revenue, as well as content to increase visitation and activation at their Web properties.

On behalf of its advertisers, the Company delivers a variety of offers to targeted segments of consumers. CoolSavings provides advertisers a method of generating permission-based leads by providing consumers with access to free samples or trial offers of their products or services across the Lead Generation Network, which is the Company’s distribution network for lead generation offers and is part of the CoolSavings Marketing Network. These offers can be targeted to consumers by demographic profile, shopping preferences and aggregate transactional data. Consumers voluntarily provide the advertiser with contact information, such as name, e-mail and mailing address, as well as other data about their households in order to be contacted by the advertiser with more information or for a special promotion. The Lead Generation Network became fully operational in 2004.

Registered consumers across the Company’s E-Mail Network, a part of the CoolSavings Marketing Network, may elect to receive periodic e-mails notifying them of offers from the Company’s advertisers that may be of personal interest. This allows CoolSavings to send targeted e-mails to these registered consumers on the basis of their demographic profiles and shopping preferences. The e- mails are targeted through pre-selected criteria, customized survey questions, and/or customized models CoolSavings develops for particular campaigns. Consumer permission is at the heart of the Company’s e-mail solution. Therefore, promotional e-mails are only sent to registered consumers who have consented to receive them.

Using the Company’s technology, manufacturers and retailers can distribute secure printable coupons and paperless/electronic coupons to a targeted group of consumers for in-store or online redemption (using coupon codes for online purchases) to consumers across the Company’s Coupon Network, a part of the CoolSavings Marketing Network. Companies also license the Company’s technology to deliver coupons to consumers visiting their own Web properties.

In 2004, CoolSavings expanded its marketing services with the launch of the FreeStyle Rewards program. FreeStyle Rewards is a point-based rewards program for registered consumers, under which registered consumers earn points for each dollar spent on qualified purchases at participating online merchant Websites. CoolSavings receives a portion of the purchase price from the merchants and record it as revenue. FreeStyle Rewards’ registered consumers can redeem the earned points for a FreeStyle Rewards branded, pre-funded debit Mastercard that can be used as cash at millions of locations and online. With this program, the Company has added hundreds of merchants and online shopping offers to the Company’s existing program of online savings. As of December 31, 2004, this program was available on the coolsavings.com Website. In 2005, CoolSavings extended this program by adding additional online merchants and launching a standalone Website located at www.freestylerewards.com.

CoolSavings uses data mining tools to help its advertisers execute effective promotional campaigns. These tools permit the Company to analyze individual and demographic information in its database and provide its advertisers with insight into the Company’s consumers’ preferences. CoolSavings uses the tools to analyze collected consumer information and create predictive models to make future targeted advertising even more effective. Using e-mail, the Company can also contact and survey Coolsavings registered consumers who have responded to a specific offer. CoolSavings also uses its analytics to manage and optimize the performance of its collective offer set for its benefit and the benefit of its consumers. The Company can also apply its analytic infra- structure to analyze the databases of its advertisers upon their request.

During 2004, the Company also launched Grocery Solutions, an addition to its coupon service featuring electronic/paperless coupons. The Grocery Solutions capability was acquired through the Company’s purchase of the Targeted Marketing Services business line of ADS Alliance Data Systems, Inc. on February 6, 2004. In offering Grocery Solutions, the Company derives revenues primarily from grocery retailers by providing distribution of printable coupons and coupons posted electronically to frequent shopping cards of members of the customer loyalty programs of a growing list of grocery retailers.

Formerly known as CoolSavings.com, Inc.

Business Line
Engaged in the provision of interactive marketing services to advertisers, their agencies and publishers
Subsidiary
ACTIVISION BLIZZARD, INC. via its funds
Advisor
PRICEWATERHOUSECOOPERS LLP
IPO date
5/2000
US SIC Code
7389
Company Address
19th Floor
360, N. Michigan Avenue
City province or state postal code
60601, CHICAGO, IL
Phone: +1 312 224 5000
Fax: +1 312 224 5001
Country address: UNITED STATES OF AMERICA
Website url: www.coolsavings.com