What's Going On With PPC? - Part 2

What's Going On With PPC? - Part 2

This is the second part in a series in understanding what is going on with Pay Per Click (PPC) revenue.

We can see the overall impact of the CTR and EPC graphs (see the previous article) by examining the RPM trend chart. The shape of the chart really highlights the rush of advertisers and consumers pushing up the value of traffic in May and then a decline into the norhern hemisphere summer period.

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The seasonal summer downturn can be clearly seen and the rise through September is encouraging. It’s clear that in both cases the rise back up to the previous May values are not being reached so something else must have occurred to disrupt the normal cycle.

RPM chart

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Critical Insights Into the Domain Industry - Part 2

Critical Insights Into the Domain Industry - Part 2

This article continues directly from Part 1 in the series "Critical Insights Into the Domain Industry"

Google’s response to the aggregation of traffic by parking companies was to instantly grant a number of additional domain feeds to new parking companies. Some of these feeds had a honeymoon clause that allowed them to have a competitive advantage versus the larger incumbents. Many domain investors flocked to these new companies as they were seen as their salvation to paying renewal fees. This instantly re-fragmented the marketplace.

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Now that the market was split up again, Google instituted DRID’s (Domain Registrant ID) to reduce fraud (this was a good move IMHO) and CAF (Custom Ad Frame). CAF is where Google controls everything on the lander for a parked page.

Personally, I think that this overall strategy was a really clever part on Google. It allowed them to decrease PPC rates and completely control the entire domain channel without the threat of a wounded Yahoo stepping up to the plate. Some people get really upset by Google’s behaviour. What domain investors need to understand is that Google is obligated to behave in such a fashion on behalf of their shareholders.

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Critical Insights Into the Domain Industry - Part 1

Critical Insights Into the Domain Industry - Part 1

I’ve spoken and attended a lot of conferences over the years….and clocked up quite a few airline miles in the process! During this time I’ve seen so many people come and go, businesses launched only to vanish and domain investments completely mismanaged.

So why am I reflecting on these things? I was speaking with a client this morning and the conversation caused me to journey down memory lane and review a few of my old presentations that I’ve shared at conferences.

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I had a bit of a laugh when I looked at a presentation that I did at TRAFFIC Vegas 2008. One of the slides predicted the recession and the collapse of domain valuations and PPC revenue. Guess what….it happened.

Am I a living genius? My wife would be the first to say, not at all! What I try and do is take in what is happening in the complete industry and then ask the reason “Why?” This is quickly followed up by, “So what does this mean?”

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