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Direct Navigation - Nora Nanayakkara - Sedo

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Direct Navigation - Nora Nanayakkara - Sedo

  1. 1. Direct Navigation Nora Nanayakkara Business Development Director A4U Expo London “ The Largest Untapped Market for Paid Search Advertisers and Affiliate Marketers”
  2. 2. So what is the Secondary Market? <ul><li>Registered domains </li></ul><ul><li>Expired domains </li></ul><ul><li>Domain trade </li></ul><ul><li>Domain parking </li></ul><ul><li>12 million domains for sale at Sedo </li></ul><ul><li>27,000 domain transactions in 2007 (17500 in 2006) </li></ul><ul><li>£37,048,960 transaction value in 2007 (60% up on 2006) </li></ul>Seite: 5. Juni 2009
  3. 3. Secondary Market Statistics <ul><li>Average Sales Price .com </li></ul><ul><ul><li>2006: £1664 </li></ul></ul><ul><ul><li>2007: £2563 </li></ul></ul><ul><li>Average Sales Price </li></ul><ul><ul><li>2006: £2047 </li></ul></ul><ul><ul><li>2007: </li></ul></ul><ul><li>Domain parking </li></ul><ul><li>12 million domains for sale at Sedo </li></ul><ul><li>27000 domain transactions in 2007 (17500 in 2006) </li></ul><ul><li>£37,048,960 transaction value in 2007 (60% up on 2006) </li></ul>
  4. 4. How can domains help Affiliates and Marketeers? <ul><li>SEO </li></ul><ul><ul><li>Relevance </li></ul></ul><ul><ul><li>Keyword domains </li></ul></ul><ul><li>Direct Navigation </li></ul><ul><li>Branding </li></ul><ul><li>Campaigns </li></ul><ul><li>Appreciating Assets </li></ul><ul><li>Traffic </li></ul>Seite: 5. Juni 2009
  5. 5. <ul><li>First, a few background premises: </li></ul><ul><li>Domain names are not just about your brand name </li></ul><ul><li>Descriptive “Direct Navigation” domain names receive targeted traffic </li></ul><ul><li>Every campaign involves a domain name </li></ul>Domain Names as a Marketing Tool? Should domain names be part of your marketing mix?
  6. 6. “ Direct Navigation is the largest untapped market for paid search advertisers and agencies.” “ The best kind of traffic for websites.”
  7. 7. Why are “Direct Navigation” Domain Names important? <ul><li>-Susquehanna Financial Group </li></ul>“ Approximately 10% of all PPC traffic* derives from Direct Navigation portals” *Or a total of about $1 billion in 2007...
  8. 8. So, what is Direct Navigation anyway? “ Searching” via descriptive domain names Keyword search = Keyword Domain + Extension
  9. 9. Do people really search via domain names? <ul><li>WebSideStory Research: </li></ul><ul><li>“ Over 64% of users arrived at sites by direct navigation, compared to 35% via search engines and links.” </li></ul><ul><li>Some users don’t distinguish between search bar and browser navigation bar: </li></ul><ul><li> Ex: Top Searches on : </li></ul><ul><li>Some browsers auto-complete (add “www” and “.com”) </li></ul>4 times as much as “ Paris Hilton”!
  10. 10. 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
  11. 11. BRAND  DealTime & Epinions   Why do Marketers Purchase Domain Names? TRAFFIC  B&N  Intel  B of A  Enterprise VERTICAL  Heinz Ketchup  P&G  Chiron Vaccines
  12. 12. The Economics of Domain Traffic The “Old Way”: Buy the Traffic via Google AdWords 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
  13. 13. The Economics of Domain Traffic The “New Way”: Buy or Lease the Domain via Sedo 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
  14. 14. <ul><li>- Generic - Descriptive </li></ul>Role of Descriptive Domains in Purchase Funnel - Branded - Product-specific Keywords Used :
  15. 15. 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,” “”) accounted for 20 percent and specific product terms (e.g. “Canon digital camcorder,” “HP notebook nx9010”) accounted for 10 percent” <ul><li>Your domain strategy must also encompass generic category terms! </li></ul><ul><li>Use direct navigation domains to reach customers early on in the purchase consideration funnel </li></ul>
  16. 16. A Well-implemented Advertising Vortal <ul><li>A good first stop for those new to the category (early on in purchase consideration funnel!) </li></ul><ul><li>Premium domain adds to credibility and perception of independence </li></ul><ul><li>Focus is on education and information </li></ul><ul><li>Branding and introduction of company products is secondary </li></ul>
  17. 17. Rebrand on a Generic Descriptive Domain? “ By 1999, within 15 months of changing our name to, 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.” <ul><li>An extreme measure, but the benefits can be tremendous! </li></ul>Example of rebranding as
  18. 18. <ul><li>Like well-known brand names, descriptive domain names have an immediate recognition factor that generates increased CTR </li></ul><ul><li>Users assume sites with premium one-word .coms have greater credibility </li></ul><ul><li>Keyword repetition: title, description, URL </li></ul>“ ClubMed had a 33% lift using keyword sub-domains...” Instant Recognition: Which ad would you click on? BONUS # 1
  19. 19. <ul><li>Absolute FM – </li></ul><ul><li>Bank Of America -   </li></ul><ul><li>Dove – </li></ul><ul><li>PizzaHut – </li></ul><ul><li>New Reg – </li></ul><ul><li>Car Phone Warehouse – </li></ul><ul><li>Times – </li></ul><ul><li>Sedo – </li></ul><ul><li>Sainsburys – </li></ul><ul><li>Ariel – </li></ul><ul><li>Energy Saving Trust – </li></ul>Examples <ul><li>Bayer - </li></ul><ul><li>Barnes & Noble - </li></ul><ul><li>Boeing -    </li></ul><ul><li>BK - </li></ul><ul><li>BK - </li></ul><ul><li>Calvin Klein - </li></ul><ul><li>Calvin Klein - </li></ul><ul><li>Campbell's - </li></ul><ul><li>Arrid Deodorant - </li></ul><ul><li>Citibank - </li></ul><ul><li>King Casino – K </li></ul><ul><li>Nurofen – Pa </li></ul><ul><li>Mars – (Whiskas, Sheba, Pedigree) </li></ul><ul><li>Dairy Council – </li></ul>BONUS # 2
  20. 20. <ul><li>Better conversion rate : specific domains can be an exact match to the niche that the user’s looking for </li></ul><ul><li>Easier tracking : how many people visited the domain from that campaign? </li></ul><ul><li>Brand association : Bank of America is “Loans” </li></ul><ul><li>Brand dis association : is an independent information source, not a pharma company sales pitch. </li></ul>Why use campaign-specific domains? BONUS # 2 ClickZ: “78% of Ad Agencies preferred Campaign-Specific URLs...”
  21. 21. BONUS # 2 If it’s worth more than $10, don’t do this! Why use campaign-specific domains?
  22. 22. Better Organic Search Engine Placement Results for „Kreuzfahrten“ on  is #1 Results for „Cruises“ on  is #1 BONUS # 3
  23. 23. <ul><li>Most people still link with your domain name: </li></ul><ul><ul><li>“ I buy domains at ” </li></ul></ul><ul><ul><li>“ I found a WiFi provider at ” </li></ul></ul><ul><li>Therefore, if your domain contains your keywords, you automatically generate many incoming keyword links </li></ul><ul><li>Google interprets that as your site being a popular source for info on keyword </li></ul>It’s not a guarantee, but there is solid evidence it helps! BONUS # 3 Better Organic Search Engine Placement
  24. 24. Putting it all together: A Portfolio of “Direct Navigation” Domains <ul><li>Goal: </li></ul><ul><li>“ Own” your niche: All domains and SE placements for the most relevant keywords (use keyword generation tools) </li></ul><ul><li>Why: </li></ul><ul><li>Perpetual stream of targeted traffic </li></ul><ul><li>Excellent organic search engine listings </li></ul><ul><li>Better CTR on search engine ads and organic listings </li></ul><ul><li>More granular tracking of ad campaigns </li></ul><ul><li>Increased credibility </li></ul><ul><li>Better conversion-to-sale </li></ul>
  25. 25. Domain Portfolio: £ 2.5 Million in sales from 30 Direct Nav Domains! <ul><li>Nearly all sites are ranked #1 or #2 in </li></ul><ul><li>The domain portfolio is the only marketing spend! </li></ul>
  26. 26. <ul><li>Identify your top keywords in each market </li></ul><ul><li>Develop a list of 200-300 target domains by pairing keyword + extension </li></ul><ul><li>Immediately register anything that’s still available! </li></ul><ul><li>Go to the secondary market (try eg. ) to acquire any registered domains </li></ul><ul><li>Determine your offer value based upon the value of the traffic </li></ul><ul><li>Protect your purchase using an Escrow service (Sedo,, etc...) </li></ul>Start Building your Domain Portfolio Today! <ul><li>Or, try the easy way: Visit or contact me at [email_address] for assistance: </li></ul><ul><ul><li>Coming up with a list of domains to buy </li></ul></ul><ul><ul><li>Determining how much to offer for those domains </li></ul></ul><ul><ul><li>Anonymously negotiating a purchase and securely transferring ownership </li></ul></ul>
  27. 27. A Peek on the Other Side of the Fence... What’s it like to be a domain investor?
  28. 28. Domain Investing: How much money can be made? <ul><li>THE ANATOMY OF AN “AVERAGE” 500 DOMAIN PORTFOLIO: </li></ul>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)
  29. 29. Getting started in Domain Investing PRE-REQUISITES FOR SUCCESS W/ DOMAINS: <ul><ul><li>Requires intelligent domain selection and HARD WORK </li></ul></ul><ul><ul><li>You’re a bit late to the game (and competing against big $ and technology), so focus on untapped new areas (“long bets”) and niches where you have special expertise </li></ul></ul><ul><ul><li>Park your domains to make money from the traffic without developing a website (see to learn more) </li></ul></ul><ul><ul><li>Browse domain marketplaces for bargains you can “flip” </li></ul></ul><ul><ul><li>Find more domain investing tips at </li></ul></ul>
  30. 30. <ul><li>World’s largest domain marketplace with over 11.5 Million domains listed for sale </li></ul><ul><li>The average domain currently sells for around €1,500. </li></ul><ul><li>Our highest value domain sale was for $3 million. </li></ul><ul><li>Over 4 million direct navigation portals in thousands of verticals </li></ul><ul><li>About 700,000 members from dozens of countries buy and sell through Sedo </li></ul><ul><li>Nearly 2,500 domains are sold through Sedo each month </li></ul><ul><li>Offices in London, Cologne (Germany), and Boston (USA) </li></ul><ul><li>Also offer assistance with domain valuation, consultation on selecting appropriate domain names, domain acquisition, domain brokerage, and domain escrow/ transfer services </li></ul>Some Quick Facts about Sedo