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to DN Journal Newsletter #5!
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Flood
of Advertisers Wash Away Summer PPC Doldrums
PPC
(pay per click) revenues traditionally take a dive
in summer months when people are off on vacation or
simply taking advantage of the longer days to spend some
time in the sun rather than at the keyboard. I was fully
prepared for the usual big fall off in June, so
it was an exceptionally pleasant surprise when my
PPC earnings not only did not fall - but soared
to an all time high. Several other people told me they
had the same experience (and the stories came from
people at a variety of different PPC companies, so the
phenomenon was apparently widespread).
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In
my case earnings jumped 20% over May revenues and
were 12% higher than my previous best month in
2006 (which was March). So what's going on here?
It seems that advertisers just can't get enough
of the web. As they continue to leave old line media for
the internet, advertising agencies are rapidly revising
their web spending forecasts dramatically upward.
Last
week, Universal
McCann said it now expects internet ad spending to
jump 25% this year and that doesn't even count
the gigantic search advertising category. In the
company's last projection in December they predicted
only a 10% increase for this year. When you
factor in search advertising the stats are even more
impressive. Google's ad revenue jumped 84%
in the first quarter of 2006 compared to the same
quarter in 2005 and Yahoo! had a 35%
increase in the same period. This has helped propel PPC
revenue higher for domain owners who are sitting in an
enviable position indeed.
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Advertisers
aren't flocking to the web just because it is
the trendy thing to do. They are pouring on line
because they are seeing a spectacular return on
their investment. Performics, a division
of DoubleClick.com has issued an
interesting report on Search
Trends for the 1st Quarter of 2006. The
report shows that web search advertisers are
getting a better return on their investment than
ever before. Total search ad spending soared
over 37% from the same quarter in 2005 while
the advertiser's sales rocketed by 72%! The
report also showed that web surfers are
searching on a wider variety of keywords with
the number of keywords receiving at least one
monthly click or conversion shooting up 36%
in the past year. |
The
amazing thing is that the migration to the web is just
beginning. Internet ad spending is still just a fraction
of the money spent in old media like newspapers, radio
and TV, but the world is obviously changing at breakneck
speed. Domain owners have reason to be happy but there
is a culprit is lurking in the shadows that some think
could kill the goose that is laying the golden eggs.
That is click fraud. Domain monetization
companies have been warning about it for a long time now
and the extent of the problem is now being recognized by
advertisers, the people footing those PPC bills that
have kept domain investors smiling.
According
to a new report from market research firm
Outsell Inc., detailed in the San
Francisco Chronicle, Internet
advertisers lost $800 million last year
to phony clicks on Google, Yahoo!, MSN
and other sites. Advertisers complain that
search engines aren't doing enough to combat the
problem and the study says that 27% of
advertisers have either reduced or stopped
buying PPC ads all together. Outsell says
that 14.6% percent of all clicks are
bogus, and that 75% of advertisers have
been victims of click fraud at least once. The
unhappy campers are still outnumbered in the
rush to the web, but there is no understating
the potential for disaster if the click fraud
problem isn't brought under control. |
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(Editor's
Note: The Outsell survey was based on 407
online advertisers spending from $1,000 to $10 million
annually).
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Leading Brands Turn to
Creative Domain Marketing to Reach Consumers
In an interesting trend that Rob Sequin has
been tracking at his SearchDomainsForSale.com
site, some very well know companies, including American
Express, Anheuser Busch and Bank of America have
been using domains that make no reference to their brand
names to connect with Internet users. Sequin calls the
practice "creative domain marketing".
Examples include Audi
using NeverFollow.com, BellSouth using FastAccess.com
and Boeing using NewAirplane.com. "This
method gives ad agencies and brands the ability to monitor
traffic to the non-branded web site, allowing them to
better track their campaigns. Also, developers and
marketing agencies do not need access to the corporate or
main brand site for development and statistics,"
Sequin said. |
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Last
time we looked, Sequin had documented 68 such campaigns. Here are
the first 20 from his list (you can see the complete compilation
at his site):
- ABC ABetterCommunity.com
- American Express - MyLifeMyCard.com
- American Lung Association - AsthmaControl.com
- Anheuser-Busch DesignatedDriver.com
- AOL - TotalTalk.com
- Aubuchon Hardware - HardwareStore.com
- Audi - NeverFollow.com
- Banana Republic - FindTheArtInTheEveryday.com
- Bank Of America Loans.com
- BellSouth FastAccess.com
- Best Buy - CEOOO.com
- Boeing - NewAirplane.com
- Bowflex - BuyTC.com
- Burger King - SubservientChicken.com
- Busch Gardens HeroSalute.com
- Campbell's Soup - MySoup.com
- Carnation Instant Breakfast - GreatMorningGiveaway.com
and MyMorningFuel.com
- Chevron - WillYouJoinUs.com
- Coffee Mate/Nestle - TheCowsAreComing.com
- Comcast CultureFool.com
With
such major companies joining the chase for generic words and
terms, another log has been added to the fire that is fueling a
domain boom that has continually gaining steam for more than two
years now.
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July Cover Story Coming This Weekend
Nathan
Sassover
WorldNetCast.com |
Our July Cover Story
will be out this weekend and our subject is a perfect
example of the remarkable vision shown by early domain
investors. Unless you have been living in a cave, you know
that Internet video has become all the rage this year. If YouTube.com
isn't making headlines, TV network deals to make their
shows available for download online is. Way back in the
mid 1990's Nathan Sassover saw all of this coming
so he started registering domains for a web-based global
TV network.
Sassover's company, WorldNetCast.com,
went through some lean times waiting for broadband and the
rest of the world to catch up, but now he is reaping the
rewards for his foresight. WorldNetCast operates dozens of
geographically targeted local video sites like NewYorkCityTV.com,
SouthernCaliforniaTV.com and OregonTV.com. |
They have
also broadened their scope with a search brand, YellowPagesTV.com,
that will be featured across their network. WorldNetCast has
already attracted advertisers like American Express, the U.S.
Postal Service and Holiday Inn. In
our story, we'll tell you where this web video pioneer came from
and how he developed a working global video network on the domain
name foundation he laid years ago. In the course of doing this
article, we learned that Sassover has a personal background that
has much in common with that of Ari Goldberger, the
attorney/entrepreneur, who was the subject of our June
Cover Story. Like
Goldberger, Sassover's parents were survivors of the Holocaust.
Nathan's parents each lost both of their parents as well as 13
brothers and sisters between their two families. Sassover's
parents came to America in 1949 and settled in Milwaukee,
Wisconsin where they, and Nathan, became naturalized U.S.
citizens. It's another compelling story of how someone can start
with nothing and go on to build something special. We'll of course
send you an email when the new story has been posted.
Domain Fest Coming to Barcelona, Spain
I'm sure just about all of our readers are familiar
with the big domain conferences staged by the folks who
run the T.R.A.F.F.I.C. shows and the Domain
Roundtable Conference. Europeans, who haven't been
able to make it to one of those mega events in the U.S.,
will be happy to know that DomainSponsor.com and EuroDNS.com
are teaming up to bring a domain confab to your neck of
the woods - Barcelona, Spain to be exact. The event
will be held at the spectacular Hotel Arts - Ritz
Carlton and there will be NO registration fee!
The sponsors are covering the cost for most of the meals,
cocktail receptions and entertainment so attendees will
only need to handle their own hotel and travel
expenses. |
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Organizers
say the primary focus of the conference will be on creating new
business opportunities and sharing industry-related ideas. You are
invited to RSVP at www.domainermeeting.eu.
For more information you can send an email to [email protected].
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