MonetisationOr “Why the Sun never sets on this industry”

Why develop domains?

• Falling EPCs• Aftermarket prices• Reliance on Google etc– e.g. CPCs flatlining,

impact of increased advertiser transparency, quality score changes

• Index quality improvements

• Commoditisation of inputs

• Low barriers to entry

Researching that

Challenges:• What to build• How much can it make• How long will it take• How do I get the best people• Where should I focus• How many can I do• Partner or buy• Where are the opportunities

Initial qualitative inquiry

• Model for valuing domains– Based on AU traffic

(CPCs and top search queries)

• Analyse top 150 domains:– Strategically used– Monetised

• Comparative– US & AU

Simplified findings:

1. The economic downturn means previously stubborn domain owners will be more interested

2. Building sites will attract visitors; domains have been traded by other traders thereby inflating their actual value

3. Great opportunities exist outside of the US

MethodologyStrategically Used & Monetised

Examples of generic domain usage

• Cheapflights.com• Phone.com• Voip.com• Education.com• Debt.com• Mortgage.com• Realestate.com.au• Credit.com• Work.com• Travel.com.au

• Travel.com• Computers.com• Dating.com.au• Homeloan.com• Life.com, life.com.au• Moving.com.au• Furniture.com• Domainnameregistration.com• London.com.au• Family.com.au

FindingsWhere are the opportunities?

Sample

There’s some icing left in the US and Australia’s got donut

Some Value Remains in the USUsed Strategically (U.S.)Technology/Electronics

Classifieds & Services

Finance

Monetised (U.S.)Technology/Electronics

Finance

32%

42%

47%

75%

79%

Australian Domains UnderutilisedUsed Strategically (AU)Classifieds & Services

Finance

Travel

…Shopping

Technology/Electronics

23%

11%

11%

8%

14%

... & Under CommercialisedMonetised (AU)Auto

Classifieds & Services

Finance

Shopping

33%

38%

34%

42%

Example Opportunities

www.computers.comwww.trading.comwww.life.comwww.furniture.comwww.data.comwww.banking.comwww.tax.comwww.webhosting.comwww.personalloan.comwww.job.comwww.homeloan.com

www.home.com.auwww.free.com.auwww.loan.com.auwww.mortgage.com.auwww.australia.com.auwww.credit.com.auwww.world.com.auwww.business.com.au

But really, it’s the Whole Wide World