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Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
Domaining and Address-Bar Driven Traffic
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Domaining and Address-Bar Driven Traffic

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Did you know that Direct Navigation traffic converts twice as much as search traffic? Learn about this growing practice among consumers and how domains can drive more qualified traffic to your …

Did you know that Direct Navigation traffic converts twice as much as search traffic? Learn about this growing practice among consumers and how domains can drive more qualified traffic to your business.

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    • 1. Domaining and Address Bar-Driven Traffic Monte Cahn, President and Founder, Moniker Online Services Jothan Frakes, Director of Industry Relations, Oversee.net
    • 2. Monte Cahn <ul><li>Founder and President </li></ul><ul><li>Moniker.com </li></ul><ul><li>Marketplace, Live Domain Auctions, Silent Auctions </li></ul><ul><li>Host of Domain Masters, every Wednesday at 7 pm EST/4 pm PST –WebmasterRadio.fm </li></ul><ul><li>Domain Experience Since 1995 </li></ul><ul><li>Moniker.com - more than 2.7M Domains under management – 7 th largest Registrar </li></ul><ul><li>12 ICANN Accredited Registrars, Domain Sales, escrow, appraisal, Traffic Monetization </li></ul><ul><li>First to sell a domain for more than $1M and $2M (Wallstreet.com, Autos.com); more than $45 million at auction </li></ul><ul><li>Stealth Acquisition specialist </li></ul><ul><li>Invented the Domain Appraisal - 460K appraisals to date, IRS Accepted, used for lending and donation </li></ul><ul><li>One of the first to monetize domain traffic in 2000 </li></ul><ul><li>Focus is on Domain Asset Management – Average Client owns 100+ domains </li></ul><ul><li>Clients include – Major League Baseball, NHL, Lions Gate Films, Incisivemedia/Jupitermedia, Marchex, and Yahoo! </li></ul>
    • 3. Jothan Frakes <ul><li>Director of Industry Relations </li></ul><ul><li>Oversee.net </li></ul><ul><li>Founder, Domain Roundtable and Co-founder of DomainFest conferences </li></ul><ul><li>Moderator, Domain Marketplace workshops at ICANN meetings </li></ul><ul><li>Guest Host of Domain Masters, every Wednesday at 7 pm EST/4 pm PST –WebmasterRadio.fm </li></ul><ul><li>Domain Experience Since 1994 </li></ul><ul><li>Founded and executive produced Domain Roundtable conferences in 2005, 2006 </li></ul><ul><li>Frequent speaker and industry subject matter expert on domain name industry, PPC, and domain aftermarket </li></ul><ul><li>Launched and .cc ccTLD in 1997, operated technical services 4 other ccTLDs </li></ul><ul><li>Founding Member of the .Mobi Advisory Group </li></ul><ul><li>Consulting Member of the COCCA, Country Code TLD Association </li></ul><ul><li>Consultant to multiple Top Level Domain (TLD) registries (Afilias / .info, DotAsia, Dot Mobi, VeriSign, Neustar) </li></ul>
    • 4. Professional Domain Portfolios <ul><li>ICANN regulates the domain industry </li></ul><ul><li>Empowered by the US Department of Commerce </li></ul><ul><li>Following regulations –innovative entrepreneurs invested </li></ul><ul><li>Many risked $100,000+ per year with unknown future </li></ul>
    • 5. Domain Marketing Became Extremely Profitable <ul><li>Domain revenue sources were not originally known </li></ul><ul><li>Revenue = Search revenue, PPC, CPA programs, affiliate sites, and Selling Domains </li></ul><ul><li>Annual online advertising revenue estimated to grow to more than $1 Billion in 2007 </li></ul><ul><li>Domain sales likely to top $500 million this year </li></ul><ul><li>Ad revenue has potential to reach $2 billion by 2010 </li></ul><ul><li>Domains contribute 15% of Google/Yahoo Search revenue </li></ul><ul><li>Market includes approximately 14 million domains out of 128 million registered and growing </li></ul>
    • 6. Revenue drove Domain Portfolio Creation Investment domains: BuyDomains …… 800,000 Oversee ………… 600,000 Fabulous ……….. 600,000 Vendare ………… 500,000 Marchex ………... 200,000 GeoSign ………… 100,000
    • 7. The worldwide industry is healthy <ul><li>A record 146 million domain names are now registered, a 31% increase year over year </li></ul><ul><li>12 million new domains were registered during Q3 of 2007, an increase of 25% over Q3 of 2006 </li></ul><ul><li>By 2010, domains worldwide will top 240 million </li></ul><ul><li>Today, 87% are live (standard and parked), 74% renewed </li></ul><ul><li>More than 240 ccTLD extensions globally, but the top 10 ccTLDs make up more than 66% of the total. </li></ul><ul><li>ccTLD registrations total more than 54 million, 38% growth rate year over year at the end of Q3 2007 </li></ul>
    • 8. The worldwide industry is healthy <ul><li>In the past year, aftermarket sales have increased by an estimated 58%, with total private and public transactions reaching more than $300 million. </li></ul><ul><li>At least 57 domains sold twice between 2004 and 2005. The value of these domains increased an average of 288% over just 230 days. More than 200 domains sold twice between 2004 and 2006. </li></ul><ul><li>73.3M active (registered) .COM domain names registered. High registration and renewal rates on .COM domain names (according to VeriSign 74% to 78% of .COM names are renewed) </li></ul>As of 02/24/08 there are 73,366,208 .COM Domain Names
    • 9. The worldwide industry is healthy <ul><li>Top ccTLDs for Q3 2007: </li></ul><ul><ul><ul><li>1 .de (Germany) </li></ul></ul></ul><ul><ul><ul><li>2 .cn (China) </li></ul></ul></ul><ul><ul><ul><li>3 .uk (United Kingdom) </li></ul></ul></ul><ul><ul><ul><li>4. .nl (Netherlands) </li></ul></ul></ul><ul><ul><ul><li>5 .eu (European Union) </li></ul></ul></ul><ul><ul><ul><li>6 .ar (Argentina) </li></ul></ul></ul><ul><ul><ul><li>7 . it (Italy) </li></ul></ul></ul><ul><ul><ul><li>8 .us (United States) </li></ul></ul></ul><ul><ul><ul><li>9 .br (Brazil) </li></ul></ul></ul><ul><ul><ul><li>10 .ch (Switzerland). </li></ul></ul></ul><ul><li>Source: Verisign, Dec 2007 </li></ul>
    • 10. Internet usage worldwide September 30, 2007 Source: Internet World Stats 244.70% 100.00% 100.00% WORLD TOTAL 149.90% 1.50% 0.50% Oceania / Australia 540.70% 9.30% 8.50% Latin America/Caribbean 117.20% 18.90% 5.10% North America 920.20% 2.70% 2.90% Middle East 221.50% 27.20% 12.30% Europe 302.00% 36.90% 56.50% Asia 874.6 % 3.50% 14.20% Africa Usage Growth Usage % of the world Population % of the world Region WORLD INTERNET USAGE AND POPULATION
    • 11. The secondary marketplace for domain names is healthy <ul><li>Using the top ten reported domain sales at popular reporting center DNJournal.com: </li></ul><ul><li>Some Noteworthy Sales: </li></ul><ul><li>Porn.com 9.5M USD (2007) </li></ul><ul><li>Vodka.com 3.0M USD (2006) </li></ul><ul><li>Tandberg.com 1.5M USD (2007) </li></ul><ul><li>Cameras.com 1.5M USD (2006) </li></ul><ul><li>Scores.com 1.2M USD (2007) </li></ul><ul><li>Important to also note that 2007 number is only first half of 2007. </li></ul><ul><li>Larger sales, such as pharmacy.com for 75M in late 2007 often go unreported (not reflected in graph, would be 3 slides tall at current scale) </li></ul>
    • 12. The Secondary Market is Thriving <ul><li>As we’ll witness today at 3pm in the live domain name auction, the secondary marketplace is vibrant and thriving. </li></ul><ul><li>Registration growth and renewal rates, coupled with the growing number of internet users has driven scarcity of unique address labels (Domain Names). </li></ul>
    • 13. The Secondary Market is Primary Market <ul><li>When driving with a realtor to view new properties from MLS, typically &lt;15% of homes on market are new, other 85% are mature homes. </li></ul><ul><li>Same has become true of Domain Marketplace. </li></ul><ul><li>SMB / SOHO / Corporate websites are service and brand quality sensitive more than price sensitive, which is driving this trend. </li></ul>
    • 14. What makes a good domain? <ul><li>Natural Generic Brand (search volume = mindshare) </li></ul><ul><li>Easy to Remember (radio test) </li></ul><ul><li>Clear, Concise and Descriptive (what does it say to the user) </li></ul><ul><li>Commercially Oriented (existing search bids) </li></ul><ul><li>Industry Segment (is the industry hot/cold, new/old) </li></ul><ul><li>Visually Pleasing (what will it look like on a business card?) </li></ul><ul><li>Existing Type-In Traffic (marketing benefit) </li></ul><ul><li>Back links, Page rank, Alexa Rank, etc. </li></ul><ul><li>Mistypes? (generics vs. trademark) </li></ul>
    • 15. What makes a good domain? SEO Parameters <ul><li>Keyword Research: Does the domain use popular and focused keywords? </li></ul><ul><li>Linkability: Does it appeal to bloggers and webmasters who might link to you? </li></ul><ul><li>Top-Level Domain: Dot com is still king. </li></ul><ul><li>Used URLs: Check to see if anything is still indexed. </li></ul><ul><li>Site Age (if a used URL): Run the URL through The Wayback Machine. </li></ul><ul><li>Back Links (if a used URL): Avoid URLs that have negative links coming in. </li></ul><ul><li>Blacklists Check: See if the URL or its associated IP address has been black-listed. </li></ul><ul><li>Relevancy: Look for direct, focused keyword relevance to you business. </li></ul><ul><li>URL Length: Don’t be too specific. Shorter domains are also easier to remember and type! </li></ul><ul><li>Potential for Legal Conflict: Be aware of trademarks and copyrights. </li></ul><ul><li>Double Meanings: Be aware if your keyword-rich URL has a secondary meaning? Example: www.therapistfinder.com . </li></ul><ul><li>CNet, 8/16/2007;  Stephan Spencer </li></ul>
    • 16. How Do Domains Generate Revenue? <ul><li>Domain Traffic (direct navigation) – ad revenue from CPC, CPA, CPM, Selling Traffic directly to companies or advertisers </li></ul><ul><li>Domain Sales – sale of domain names directly or portals </li></ul><ul><li>Domain Development – individually or in partnership domain owners add content, diversify advertising and build web networks </li></ul><ul><li>Vertical Dominance – to monopolize groups of domain names in category verticals. Dominance means more power and revenue. </li></ul><ul><li>Other Sources of $$$ - leveraged value for financing/loans, charitable donations/tax deductions </li></ul>
    • 17. Trends in Ad Spending by Medium <ul><li>AD SPENDING VS. MEDIA TIME BY MEDIUM </li></ul>Source: Figures regarding ad spending and time spent by medium from Forrester Research (May 2005); market growth rates from ZenithOptimedia (December 2006).
    • 18. Direct Navigation Conversion “ Conversion rates for direct navigation are almost twice that of search engines.” Source: WebSideStory.
    • 19. Domain Traffic – Recent Articles, Studies, Facts <ul><li>GROWING MARKET - 70 percent of Internet surfers use direct navigation, up 53% from four years ago (WebSideStory). Rest use search engines. </li></ul><ul><li>Direct Navigation project to be a $1 billion business this year, on track to surpass $1.2B (Susquehanna Financial) </li></ul><ul><li>Direct Navigation comprises 8-10% of the U.S. and U.K. search advertising markets – projected to be at least $840 million this year. </li></ul><ul><li>At more than 4%, direct navigation traffic converts at double the rate of search traffic (WebSideStory) </li></ul><ul><li>VeriSign indicates approximately 12-14% (approx. 100,000 per week) of its new domain registrations are likely related to pay-per-click advertising. 24% are parked. </li></ul><ul><li>Domain values have increased 20% on average over the last 3 years due to direct navigation revenue generation. </li></ul><ul><li>Public companies such as Marchex, Livedoor, and ValueClick own portfolios of Direct Navigation websites, as do numerous private equity backed companies such as iREIT, Demand Media, and NameMedia – all planning IPO. </li></ul><ul><li>PPC advertising is only the beginning/foundation for the Direct Navigation industry as new ways to monetize visitors to Direct Navigation websites evolve. </li></ul>
    • 20. How Direct Navigation Works <ul><li>User types in “careerseeker.com” in address bar searching for relevant information </li></ul><ul><li>DomainSponsor creates an optimized page of keywords relevant to the user’s search </li></ul>Targeted keywords refine user search with greater specificity resulting in higher conversion rates
    • 21. How Direct Navigation Works, part 2 The Google Contract gives Google the exclusive right to this space on Oversee.net’s Direct Navigation Sites More search topic links for additional monetization A click on any of these links generates revenue for you <ul><li>User clicks on “Find a Job” and gets sponsored results </li></ul>
    • 22. Domain Traffic – CPC page (1 &amp; 2 Click Revenue) TrafficClub.com – PPC Monetization
    • 23. Domain Traffic – CPC page (2 Click Revenue)
    • 24. Domain Traffic – “2 Click” Second Page Domain owner gets paid when users click on the second page. First page clicks are strictly navigational links.
    • 25. Domain Traffic – CPA options <ul><li>Typical direct navigation model similar to a PPC parking page </li></ul><ul><li>Landing page has links to keywords </li></ul><ul><li>When a user clicks, get a listing of additional keywords relevant to the one just clicked </li></ul><ul><li>When user clicks on one of those, takes you directly to the advertiser’s landing page </li></ul><ul><li>Eliminates competition with other advertisers </li></ul>
    • 26. Domain Traffic – CPA options <ul><li>Oversee.net offers a turnkey product </li></ul><ul><li>90 advertiser verticals available </li></ul><ul><li>Sample Verticals: </li></ul><ul><li>Credit Cards                             Dating </li></ul><ul><li>Weight Loss                              New Car Quotes </li></ul><ul><li>Work from home                       Auto Insurance </li></ul><ul><li>Auto Parts                                 Credit Reports </li></ul><ul><li>Education                                  Flowers </li></ul>
    • 27. Generic Domains Search Volume vs. Type-In Unique Visitors Search Volume Annual Uniques There is a direct relationship between domain phrase search volume and domain traffic volume
    • 28. Creating Your Own Portfolio <ul><li>Who? </li></ul><ul><ul><li>Anyone with moderate capital, intelligence, patience and time </li></ul></ul><ul><li>Where? </li></ul><ul><ul><li>Aftermarket domain web sites, WhoIs, search databases, trademark exclusion tools, search bidding tools, creative thinking, expired/drop names </li></ul></ul><ul><li>When? </li></ul><ul><ul><li>Today, you are a little late but not dead! </li></ul></ul><ul><li>Why? </li></ul><ul><ul><li>Growth is incredible, high return on capital employed, advertising revenues are escalating, capture your market </li></ul></ul><ul><li>How? </li></ul><ul><ul><li>Find the search phrases that define your market segment </li></ul></ul><ul><ul><li>Identify domains that are commercial, rare and valuable </li></ul></ul><ul><ul><li>Register domains that are still available </li></ul></ul><ul><ul><li>Use Expired name and Drop Services </li></ul></ul><ul><ul><li>Contact those who own the rest or Stealth Acquire them </li></ul></ul><ul><ul><li>Define your strategy, budget, and time frame </li></ul></ul><ul><ul><li>Execute Immediately! </li></ul></ul>
    • 29. Domains – Brand Identity of the Internet <ul><li>Choosing the proper domain names is crucial to success. </li></ul><ul><li>The winners will see an increased market share among a generation that spends their lives online. </li></ul><ul><li>Losers will cling to decreasing audiences, especially among the youth demographic. </li></ul>Total Online Ad Spending % of Overall Ad Market
    • 30. Pharmaceutical Companies – “Buy” the disease <ul><li>Asthma is an $11Billion dollar industry – 60% going to prescription drugs. </li></ul><ul><li>GlaxoSmithKline (“GSK”) created a ‘soft branded’ portal. </li></ul><ul><li>Able to control what visitors learn about asthma. </li></ul><ul><li>Information about where visitors are coming from (IP tracking), and going to (cookies). </li></ul><ul><li>Appeals to GenX patients who are more likely to research an ailment online. </li></ul><ul><li>GSK’s competitors will be forced to constantly spend money on search engines and portals to reach potential customers online – expensive for a disease that grew by 35% since 1997. </li></ul>
    • 31. Insurance Companies – The Lead Generation Portal <ul><li>With a domain name and a web developer this company partnered with an offline insurance broker to become one of the largest independent health insurance brokers in the US. </li></ul><ul><li>Insurance companies spend money on advertising to create an image that distinguishes themselves from the competition </li></ul><ul><li>Insurance companies now face having their offerings compared against competitors on functionality alone. </li></ul>
    • 32. Health Industry Advertisers – How to Lose Your Brand <ul><li>Hispanic Americans are the largest, youngest and fastest growing minority group in the country – they also have the largest purchasing power of any minority group in the country. </li></ul><ul><li>A younger generation raised on the Internet as well recent immigrants will not have brand allegiance to established US diet companies </li></ul><ul><li>WeightWatchers or Jenny Craig spend $5 – $10 for each new customer sign-up they get from affiliate networks – can they afford to pass on a domain receiving 200,000 unique Hispanic Americans per month? </li></ul>
    • 33. Domain Purchase Potholes <ul><li>Trademark Search </li></ul><ul><li>Consider having a valuation done for high value domains </li></ul><ul><li>Use a domain escrow service </li></ul><ul><li>Financing is NOW available </li></ul><ul><li>Domain Statistics – Are they artificially inflated ? </li></ul><ul><li>You may have to Stealth Acquire to avoid artificial inflation </li></ul><ul><li>What other information can you get? </li></ul>
    • 34. Useful Links <ul><li>Phrase Data – WordTracker.com , KeywordDiscovery.com </li></ul><ul><li>Bid Price Data – Yahoo Search Marketing Bid Tool searchmarketing.yahoo.com/rc/srch / </li></ul><ul><li>Web site strength – Compete.com , SpyFu.com </li></ul><ul><li>Ownership WhoIS Lookup – v3whois.com , WebHosting.info </li></ul><ul><li>Aftermarket Domain Sales and services: Moniker.com , BuyDomains.com , Sedo.com, SnapNames.com </li></ul><ul><li>Expired Name/Drop Services – SnapNames.com , Pool.com , ClubDrop.com </li></ul><ul><li>Trademark Tools </li></ul><ul><ul><li>United States Patent &amp; Trademark Office www.uspto.gov </li></ul></ul><ul><ul><li>Microsoft Research research.microsoft.com/URLTracer / </li></ul></ul><ul><ul><li>WIPO arbiter.wipo.int/domains / </li></ul></ul><ul><li>Domain Masters, Wednesday’s at 4 PM PST – www.WebmasterRadio.fm </li></ul><ul><li>Forums and news – dnforum.com , domainstate.com , namepros.com , dnjournal.com, domainboardroom.com </li></ul><ul><li>Conferences – DomainFest, DomainerMeeting.eu, T.R.A.F.F.I.C ., WebmasterWorld.com , SES, Affiliate Summit </li></ul>
    • 35. Q &amp; A
    • 36. Monte Cahn <ul><li>Founder and President </li></ul><ul><li>Moniker.com </li></ul><ul><li>Marketplace, Live Domain Auctions, Silent Auctions </li></ul><ul><li>Host of Domain Masters, every Wednesday at 7 pm EST/4 pm PST –WebmasterRadio.fm </li></ul><ul><li>Domain Experience Since 1995 </li></ul><ul><li>Moniker.com - more than 2.7M Domains under management – 7th largest Registrar </li></ul><ul><li>12 ICANN Accredited Registrars, Domain Sales, escrow, appraisal, Traffic Monetization </li></ul><ul><li>First to sell a domain for more than $1M and $2M (Wallstreet.com, Autos.com); more than $45 million at auction </li></ul><ul><li>Stealth Acquisition specialist </li></ul><ul><li>Invented the Domain Appraisal - 460K appraisals to date, IRS Accepted, used for lending and donation </li></ul><ul><li>One of the first to monetize domain traffic in 2000 </li></ul><ul><li>Focus is on Domain Asset Management – Average Client owns 100+ domains </li></ul><ul><li>Clients include – Major League Baseball, NHL, Lions Gate Films, Incisivemedia/Jupitermedia, Marchex, and Yahoo! </li></ul>
    • 37. Jothan Frakes <ul><li>Director of Industry Relations </li></ul><ul><li>Oversee.net </li></ul><ul><li>Founder, Domain Roundtable and Co-founder of DomainFest conferences </li></ul><ul><li>Moderator, Domain Marketplace workshops at ICANN meetings </li></ul><ul><li>SnapNames Live Auction, DomainSponsor Enterprise Sales </li></ul><ul><li>Domain Name Experience Since 1994 </li></ul><ul><li>Founded and executive produced Domain Roundtable conferences in 2005, 2006 </li></ul><ul><li>Frequent speaker and industry subject matter expert on domain name industry, PPC, and domain aftermarket </li></ul><ul><li>Launched and .cc ccTLD in 1997, operated technical services 4 other ccTLDs and Internationalized Domain Names (IDN) </li></ul><ul><li>Founding Member of the .Mobi Advisory Group </li></ul><ul><li>Consulting Member of the COCCA, Country Code TLD Association </li></ul><ul><li>Long Standing Consultant to multiple Top Level Domain (TLD) registries (Afilias / .info, DotAsia, Dot Mobi, VeriSign, Neustar) </li></ul>
    • 38. Thanks! ( and remember the live domain name auction TODAY at 3pm next door in Pavillion 8 )

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