Discussions and blogs that relate to the monetisation of domain traffic.

What's RPM?

What's RPM?

Many people have said to me that the only thing that matters is revenue.....sure, revenue may be important but it's definitely not a measure of success. So the question has to be asked....what is a good measure of success?

Let's imagine that you have a domain that is doing 100 uniques per day and $100. You move the domain to another parking provider and find that the revenue drops to $75. What is the normal reaction? Move it back! Quick! I'm losing $25 per day! That actually may be the wrong answer.

Let's imagine that on the day the domain received $75 it only received 50 unique visitors. That would mean that the new parking provider is performing brilliantly compared to the first one. The way most people compare the results is via the "tried and tested" formula of:   revenue  /   views   *   1000   or in other words RPM.

This sounds wonderful until you realise that the definition of views is different at every parking provider. There are no standards at all. So it we go back to our example, the second parking company may have actually received the same amount of traffic as the first but just reported less because they have more aggressive filtering on the traffic. This would then mean that parking company one would once again potentially be the winner.

Confused? It gets worse. There are over seven different revenue numbers that can be used each month for every domain name for your RPM equation. A couple of them are, "The estimated revenue number" or "The number confirmed two days later". To get an accurate picture of what is really happening you need to get both the revenue and the traffic numbers right or you get the wrong answer and sub-optimally optimse the domain traffic.....which is a fancy way of you saying you will be losing money.

I'll do another short blog on the solution to all of this shortly.

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Google Isn't Everything

Google Isn't Everything

For the past 18 months or so many domain owners have been watching their PPC revenue decrease as Google in particular elected to pay out less and less. Although many domain owners having been crying foul I don't actually hold it against Google for taking this strategy. If I was running their business I'd do exactly the same.

The domain industry has traditionally been incredibly fragmented with domainers and parking companies accusing each other of either stealing money through withholding funds or shoving garbage traffic down the pipe. This fragmentation and angst between what should have been partners has played right into the advertising aggregators hands. A market in disarray means domain owners are whipping traffic out of one parking company and moving it to another in an effort to get higher revenues. What this has also meant is that it has been almost impossible for any parking company to scale in size to the extent that they can wag the dog.

Let's consider, only a few short years ago Domain Sponsor was riding high and had begun to flex it muscles with the development of a number of market verticals to drive traffic away from Google. Google's response.....issue a number of new contracts with honey moon periods to pull the traffic out of Domain Sponsor and the other incumbent parking companies. You had the birth of Internet Traffic, Voodoo and Parking Crew in short order (nothing against these guys by the way). Everything was as it should be.....fragmented.

So what are we seeing at ParkLogic? For a start no one parking company wins more than around 22% of the traffic. This means that if you have all of your traffic with one company then you're losing 78% of the time.....you'd think after all these years that domain owners would actually realise this. Just as an aside.....there appears to be a relative balance between the two dominant Google companies.

The most interesting thing that we are seeing is the rise of zero click solutions.....more and more of the traffic is being won by companies that bid in our real time auction system. BTW....real-time is sub 100 milliseconds. The hypothesis of why they are winning more often would have to do with the inadvertent rise of these companies as Google pushed the payouts downwards. What it also means that if you're tired of seeing your payouts decrease then you need to get into a program that has multiple zero click solutions competing against one another. If you don't then stop complaining in the forums about the decline.

I couldn't help think of the quote from Princess Leia Organa to the Grand Moff Tarkin in Star Wars, "Governor, the most you squeeze the more star systems will slip from your grasp." I personally love Google, they pay the bills and they keep on inspiring many creative minds to work together to avoid them.....so don't despair there is a Luke Skywalker out their somewhere.

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