Direct Navigation Domains Key to Traffic and SEO Success

Direct Navigation Nora Nanayakkara Business Development Director Sedo.co.uk A4U Expo London “ The Largest Untapped Market for Paid Search Advertisers and Affiliate Marketers”

So what is the Secondary Market? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Seite: 5. Juni 2009

Secondary Market Statistics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

How can domains help Affiliates and Marketeers? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Seite: 5. Juni 2009

[object Object],[object Object],[object Object],[object Object],Domain Names as a Marketing Tool? Should domain names be part of your marketing mix?

“ Direct Navigation is the largest untapped market for paid search advertisers and agencies.” “ The best kind of traffic for websites.”

Why are “Direct Navigation” Domain Names important? ,[object Object],“ Approximately 10% of all PPC traffic* derives from Direct Navigation portals” *Or a total of about $1 billion in 2007...

So, what is Direct Navigation anyway? “ Searching” via descriptive domain names Keyword search = Keyword Domain + Extension

Do people really search via domain names? ,[object Object],[object Object],[object Object],[object Object],[object Object],4 times as much as “ Paris Hilton”!

Direct Navigation Domain Names: A Spectrum of Uses Domain Traffic via G/ Y! Rent Domain Traffic Buy Domain & Redirect Develop as Mini-Vortal Rebrand on Generic Traffic Only Traffic & Brand

BRAND Shopping.com  DealTime & Epinions Diamond.com  Ice.com WebHosting.com  DynamicWeb.com Why do Marketers Purchase Domain Names? TRAFFIC Books.com  B&N PC.com  Intel Loans.com  B of A RentalCar.com  Enterprise VERTICAL Lycopene.org  Heinz Ketchup Baby.com  P&G Meningitis.com  Chiron Vaccines

The Economics of Domain Traffic The “Old Way”: Buy the Traffic via Google AdWords WiFi.com 15,000 visitors 10% CTR 1,500 visitors Google $1,500 Sedo $1,200 Domain Owner $700 Advertiser pays $1,500 for 1,500 visitors Domain Owner gets $700, Sedo $500, Google $300

The Economics of Domain Traffic The “New Way”: Buy or Lease the Domain via Sedo WiFi.com 15,000 visitors 10% CTR 1,500 visitors Google $1,500 Sedo $1,200 Domain Owner $1,000 Advertiser pays $1,500 for 15,000 visitors Domain Owner gets $1,000, Sedo $500, Google $0 $1,500 $1,000 Option 1: Lease : Option 2: Buy the domain for $350,000: - ROI in about 2 years - Domain is an asset, not an expense - You’ll have the domain forever

[object Object],Role of Descriptive Domains in Purchase Funnel - Branded - Product-specific Keywords Used :

Generic Terms Account for Majority of Search Activity ComScore Study: “Generic product search terms (e.g. “camera,” “plasma television” or “PDA phone”) accounted for more than 70 percent of total search volume, while trademarked retailer terms (e.g. “Best Buy,” “Gateway.com”) accounted for 20 percent and specific product terms (e.g. “Canon digital camcorder,” “HP notebook nx9010”) accounted for 10 percent” ,[object Object],[object Object]

Baby.com: A Well-implemented Advertising Vortal ,[object Object],[object Object],[object Object],[object Object]

Rebrand on a Generic Descriptive Domain? “ By 1999, within 15 months of changing our name to WebHosting.com, we had registered over 150,000 domain names for tens of thousands of hosting customers in over 140 countries around the world. We were on track to surpass $10 million in annual sales, handily exceeding my predictions of 2 1/2 years earlier. Our headcount grew to approximately 100 staff and we were moving offices on an annual basis to accommodate our constant expansion.” ,[object Object],Example of DynamicWeb.com rebranding as Webhosting.com:

[object Object],[object Object],[object Object],“ ClubMed had a 33% lift using keyword sub-domains...” Instant Recognition: Which ad would you click on? BONUS # 1

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Examples ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],BONUS # 2

[object Object],[object Object],[object Object],[object Object],Why use campaign-specific domains? BONUS # 2 ClickZ: “78% of Ad Agencies preferred Campaign-Specific URLs...”

BONUS # 2 If it’s worth more than $10, don’t do this! Why use campaign-specific domains?

Better Organic Search Engine Placement Results for „Kreuzfahrten“ on Google.de  kreuzfahrten.de is #1 Results for „Cruises“ on Google.co.uk  Cruises.co.uk is #1 BONUS # 3

[object Object],[object Object],[object Object],[object Object],[object Object],It’s not a guarantee, but there is solid evidence it helps! BONUS # 3 Better Organic Search Engine Placement

Putting it all together: A Portfolio of “Direct Navigation” Domains ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Domain Portfolio: ToolsOnline.com £ 2.5 Million in sales from 30 Direct Nav Domains! Trailers.co.uk ToolChests.co.uk LogSplitters.co.uk HedgeTrimmers.co.uk ConcreteMixers.co.uk Generators.co.uk Welders.co.uk Bandsaws.co.uk ,[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Start Building your Domain Portfolio Today! ,[object Object],[object Object],[object Object],[object Object]

A Peek on the Other Side of the Fence... What’s it like to be a domain investor?

Domain Investing: How much money can be made? ,[object Object],ANNUAL INCOME: PARKING $4/ domain = $2,000 from parking SELLING $1,800 avg. selling price * 2% turnover = $18,000 in sales TOTAL INCOME $20,000 ANNUAL COSTS: REGISTRATION COSTS $8/ domain = $4,000 reg fees INVENTORY RENEWAL 2% turnover * $200 cost of acquisition= $2,000 in sales TOTAL COSTS $6,000 ANNUAL PROFIT = $14,000 ROI CALC: $140,000/ $100,000 = 140% (Assuming 10% discount rate, perpetuity)

Getting started in Domain Investing PRE-REQUISITES FOR SUCCESS W/ DOMAINS: ,[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Some Quick Facts about Sedo

Direct Navigation Domains Key to Traffic and SEO Success

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Direct Navigation Domains Key to Traffic and SEO Success