By the Numbers (April 2009)

by Howard Hoffman

In a previous column I discussed the decline in revenue from parking pages. In this installment, we will look at some of the reasons that Revenue Per Click (RPC) has declined.

At DOMAINfest Global in January, Google representative Hal Bailey blamed the decline in RPC on Google-supplied parking pages on the decline in the world economy. Certainly, there is some truth to that, at least over the last 12 months or so. As companies see their business contract, they reduce their advertising, including their online advertising. As companies go out of business all together, they cease all advertising. Fewer advertisers competing for clicks means that they will be paying less for those clicks. On the other hand, my results indicate that RPC started to decline well before the current recession even started.

Google and Yahoo have both figured out ways to keep a larger share of the revenue. As an early advertiser on Yahoo PPC (back in 2000 when it was an independent company called, I am rather familiar with the purchasing side of Pay Per Click. Last year, Yahoo revamped their advertiser interface and offered me a one-on-one session with one of their support staff. In the old days, if I wanted to bid on a term, say "Las Vegas Hotel", I would bid a specific number, say $1.00. Today, it is possible for a Yahoo advertiser to bid one amount for "Search" pages and a different amount for "Content" pages. As an advertiser, I recently was encouraged to bid lower for the content pages. So, I might only bid $.50 for the term "Las Vegas Hotel" on content pages. On search pages, Yahoo (and Google) collects 100% of the revenue, since they own the page. On content pages, Yahoo has to share the revenue with the parking provider and the domain owner, typically keeping on the order of 35% of the revenue (the actual percentage is kept confidential from the general public, including domain owners).

Parking Stats you Don’t Often See

Jamie Zoch of posted some very interesting stats that he culled from  According to the artcle: Sedo has 1,964,104 domains parking with its service.NameDrive has 478,279 domain names using its parking service.TrafficZ has 295,242 using its parking service.WhyPark has 57,986 domains using its service. These stats are from 3/27/09.

Sedo buys Revenue Direct

Domain name giant Sedo and parking company RevenueDirect announced today that Sedo has taken over the smaller parking company.  The two platforms will continue operating separately for the time being, but I expect that eventually we will see a merger of the back-ends, with Sedo's landing pages predominating.   It doesn't make sense economically for them... Continue Reading →

DOMAINfest Global Raises the Bar

Bear with me.  I usually hate reading posts about conferences or trade shows that I didn't attend.  Over 600 people did attend DOMAINfest Global in Hollywood, California, making this the largest domain conference in some time.  Most of them left happy.  The panels were first rate, with speakers such as Danny Sullivan and Bruce Clay... Continue Reading →

New Templates at NameDrive

NameDrive has added some new templates this past month that may improve your income.  Studies suggest that internet users get accustomed to a template over time and immediately recognize that they are on a parked page.  Refreshing your site with a new template may help this situation. NameDrive  is a full service company that allows you to... Continue Reading →

Sedo Deleting Active Domains

One of Sedo's automated systems seems to be going a little crazy and it is deleting active domains from Sedo's system.   I received the tollowing email today Dear Customer,During a routine Account Maintenance Check, we noticed that you have one or more domains listed with Sedo that are not currently registered.Since the domain(s) in... Continue Reading →

On Second Thought

I've given a lot of thought to Google opening up AdSense for Domains to everyone.  It makes sense for Google and not a whole lot of sense for me - as an owner of domains that don't get a ton of direct type-in traffic.  If you read the material that they have written in plain... Continue Reading →

No IPO for NameMedia

NameMedia, the parent company of GoldKey, ActiveAudience, and SmartName, announced on Christmas Eve that it has given-up on its plans to go public. The timing of the announcement pretty much guaranteed that many people would miss it.  The company filed for the anticipated $172.5 million initial public offering in November 2007. A little over a... Continue Reading →

Kissing the King Goodbye

A few years ago Rick Schwartz had a corner on the market for domain conferences.  The self-proclaimed "domain king" was so upset when the people at Domain Roundtable organized a conference that he quickly organized a competing conference on the same dates.  Domain Roundtable was a success anyway, and attracted a more diverse audience than... Continue Reading →

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