27th November 2007
Generic domains a direct hit for "hundreds of thousands"
Domain name news brought to you by DescriptiveDomainNames.com
A large number of internet users are locating websites by typing in the name of the product they are looking for and following it with a .com or a .co.uk, according to xconomy.com.
In an article for the site, Wade Roush suggests that "hundreds of thousands" of people are staying away from internet search engines and are instead hoping that generic domain names will provide a portal to the product or service they are looking for.
He goes on to state that the domain name market is beginning to wake up to this fact and act accordingly, snapping up websites that are potentially very valuable to businesses.
The article notes that two companies, NameMedia and Sedo, are now trading in generic domain names and that the value of these 'parked' web addresses is high due to the fact that they act as an advertising location for pay-per-click advertising.
"Every time visitors click on these ads, the companies and their clients receive a fee … NameMedia reported revenue of $29.8 million from such ads in 2006 and another $30.4 million in the first nine months of 2007," Mr Roush notes.
He goes on to suggest that often sites which host links to products and services related to their generic domain - such as Photography.com - serve a number of gateways to related sites and that these click-through rates can out-perform the advertising on search engine result pages.
Earlier this year, the site reported that NameMedia was to file for an initial public offering of around $172.5 million.
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