future of domain parking show focus on czech

The Future of Domain Parking With a Focus on the Czech Market

Ed Russell, President, NameDrive LLC

NameDrive LLC - 2141 Wisconsin Ave., Suite C-2, Washington, DC 20007, USA T: +1 (305) 704 7793 F: +1 (305) 704 0000 E: [email protected] W: www.namedrive.com

Simon Pupo, NameDrive LLC

Presentation Overview

• A brief History of NameDrive

NameDrive and the Czech Market

Domain Parking Past and Present

The Future of Domain Parking and Monetization


NameDrive History

Founded in August 2005

Named by Google as the fastest-growing reseller of Google advertising ever

Winner of Best Parking Service, as voted for by Domainers on DomainNameWire.com in February 2006 and awarded Best Parking Service at Domain Round Table in Seattle 2007

First parking provider to offer many innovations in domain parking, including full IDN support in 2006

• Launched sales platform in May 07. Park&Sell offered first-ever chance to buy domains based on earnings

NDX market to be launched Qtr 2, 2009


NameDrive in the Czech Republic

After a slow start, we have seen much stronger growth in the Czech market

New Czech member sign ups have almost tripled in the last few months

Full IDN Support


Growth in Czech Users


Dec 05 May 06 Aug 06 Oct 06 Dec 06 Feb 07 Apr 07 Jun 07 Aug 07 Oct 07 Dec 07 Feb 08 Apr 08 Jun 08 Aug 08 Oct 08 Dec 08 Feb 09 Mar 09

Domain Parking in the Past

Several parking companies launch after seeing the huge potential. Most notably DomainSponsor, Sedo, Fabulous, all around 2002

Parking remained relatively unknown and unused until late 2004

2005 saw huge growth in the domain industry and domain parking. ND launched along with several other parking companies

New era of domain parking begins


Fish in the Domain Parking Ocean


Domain Parking today

Large number of companies

A mixture of Google and Yahoo

Most companies still overwhelmingly US-centric

Europe recognised as a growing market

Domain parking still revolves around the original technology, despite claims to the contrary

Parking still struggles to shake off its bad image outside the industry


The Future of Domain Parking


The Future of Domain Parking

Important to differentiate between Domain Parking and Domain Monetization, of which Parking is one option

Domain Parking itself will see few major changes

Domain Monetization will become more accessible and therefore more widely-used

A huge number of monetization options available in the future


Domain Parking Providers

No more new top tier parking providers

Consolidation among smaller companies

Country / region specific parking providers

More companies moving into Europe

Will offer more monetization options than straight parking

Another advertising feed to challenge Google?

More cooperation with registrars / domain service providers


Domain Parking Methods

No major changes in how domains are parked

More customization for individual domains allowing more content, better looking pages

Google don’t want parked pages in the listings

No affiliates, few additional advertising sources, no built-out sites

The current parking solution is a perfect fit for mass monetization of domains


Development of Parked Pages


Why no major change?

Domain parking is best-suited to monetizing large numbers of differently-themed domains

It is free, requires no technical knowledge to set up, very low maintenance and thousands of domains can be monetized within minutes

Other monetization methods require constant replenishment, just like “real world” shops

There is as of yet no sustainable “middle ground” between parking and developing mini sites or full websites


Strength of Domain Parking

Despite its image, is a highly successful way of monetizing domain traffic

Research shows excellent conversion for advertisers

Simplicity and effectiveness of PPC advertising

General growth of online advertising will lead to higher PPC

Increased awareness will lead to more domain registration and more use of inactive domains


Domain Monetization

Huge selection of techniques: CPA (Affiliates), PPL (Pay Per Lead), Pay Per Call, Domain Leasing, Mini Sites, Full Websites & CPM

More mass solutions offering these techniques for large portfolios, but maintenance required

More owners of smaller portfolios using these methods instead of classic domain parking

Overwhelming number of options results in no “perfect” solution for domains


The Czech Future

Czech market set for a massive increase in internet use, leading to large traffic increases

Awareness of domain monetization opportunities will help develop domain monetization and the secondary market

Monetization methods currently being pioneered in the US will filter through to Europe via UK and Germany


Internet Penetration Potential

Germany

United Kingdom

France

Russia

Italy

Spain

Turkey

Poland

Netherlands

Romania

Czech Republic (17th)

0 10000000 20000000 30000000 40000000 50000000 60000000

Internet Users March 2009

Source: InternetWorldStats.com



Internet Penetration Potential



Turkey Russia Romania Poland Spain Czech Republic France Netherlands United Kingdom Germany Italy

0.00%

200.00%

400.00%

600.00%

800.00%

1000.00%

1200.00%

1400.00%

User Growth (2000-2008)

Increase in Monthly Earnings


Nov 05 Jan 06 Mar 06 May 06 Jul 06 Sept 06 Nov 06 Jan 07 Mar 07 May 07 Jul 07 Sept 07 Nov 07 Jan 08 Mar 08 May 08 Jul 08 Sept 08 Nov 08 Jan 09 Mar 09

Conclusions

Domain parking and domain monetization to increase worldwide as global online advertising spend increases

Though the Domain Parking model will not change significantly, domain owners will be provided with an increasing number of options to monetize their domains

• Domain owners will increasingly become aware of the value of domain monetization

The Czech market is showing strong signs of growth and will continue this trend, using new monetization models pioneered elsewhere


Thank you


future of domain parking show focus on czech

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parking provider

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industry namedrive llc

monetization namedrive

czech users namedrive

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