Why domain traffic is so valuable

Getting to the real value in domain traffic.

Have you ever wondered why advertisers keep on paying for domain traffic year after year? Despite all the naysayers out there saying that domain traffic monetisation is dead it seems to keep on getting better….yes, you just heard me right.

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Domain monetisation isn’t just about views, clicks, RPM and the like. Domain monetisation is all about matching advertising to user intent and this is why it’s so valuable for advertisers. When a person goes to a domain name, they have an intent behind their query about what they are looking for and this is incredibly powerful. The user has already passed from wondering what to look for to seeking to find.

The great majority of people who are in a seeking to find mode are wanting to purchase when they find what they are looking for. The difference between looking up something on a search engine versus domain traffic is that a person looking up something on a search engine is seeking information while a person typing in a domain name is seeking to buy.

Many years ago, I read a report that Google produced outlining that domain traffic produced better results for advertisers compared to search traffic. It was at a time when Yahoo reigned supreme in the domain space but it wasn’t long before Google aggressively went after the domain industry as the traffic converted for advertisers.

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Recent Comments
joezepy
Hi Michael, Do you have any stats as to how much of Google's ad business comes from domains? Do you know where that might be acq... Read More
16 August 2019
mgilmour
There isn't any definitive data on this but my guess is that it's several billion dollars a year to Google.....of course, the indu... Read More
17 August 2019
mgilmour
Hi Todd, All good questions. I can only say that at ParkLogic we've been developing a platform over the last 2 years to do exactly... Read More
17 August 2019
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How Much Are Your Domains Really Worth? Part 1

Over the last few years there has been a rush of capital into the domain industry from two major sources, Chinese investors and speculators. I have written quite a lot on the Chinese investors but have largely ignored the speculators.

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Speculators have hoped to win the lottery by having a domain that a cashed up major company wants to desperately buy. They hear about the successes of “old-time” domainers and dream about find the pot-of-gold at the end of one of their domain rainbows. I don’t mean to rain on your parade but this is unlikely to happen and here’s why.

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What's The Value Of Your Domain?

In today’s video I discuss what makes a domain valuable and why very little underpins the current Chinese domain market. A lot of domainer’s have banked on a continually rising market and sadly, many of them may be in for a surprise when the Chinese market experiences a correction.

This is a really important and interesting point to discuss. There are a couple things that dictate what your domain name is worth and what kind of price you can be selling them for.

Watch the video and take part in the conversation by leaving a comment bellow!

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Wolftalker
Good points Michael.
05 August 2016
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