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Old 6th June 2007, 11:45 PM
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Domain Ads Generating Twice the Conversion Rate of Search Ads

Tommy Hanson, Efficient Frontier’s Director of Partner Relations:

“Our clients’ conversion rates with domain ads are double their conversion rates on search. Domain park sites generally convert at a rate of over 5%, while search and content conversion rates are at about half that.” Furthermore, Efficient Frontier’s clients are paying for cost-per-clicks that are equal to that on search for conversions that are coming in at twice the rate. “When we analyzed the results, we were shocked. We didn’t expect to see that domain park sites can bring in the quality of traffic necessary to result in twice the conversion rates, at a cost-per-click that’s equal to that on search.”

See full article on PDF at: http://www.efrontier.com/efficient_f...ForDomains.pdf
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Old 6th June 2007, 11:48 PM
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Re: Domain Ads Generating Twice the Conversion Rate of Search Ads

Sound like we deserve a raise.
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Old 7th June 2007, 01:11 AM
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Re: Domain Ads Generating Twice the Conversion Rate of Search Ads

You read my mind.
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Old 7th June 2007, 05:09 AM
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Re: Domain Ads Generating Twice the Conversion Rate of Search Ads

Quote:
Originally Posted by burnsinternet
Tommy Hanson, Efficient Frontier’s Director of Partner Relations:

“Our clients’ conversion rates with domain ads are double their conversion rates on search. Domain park sites generally convert at a rate of over 5%, while search and content conversion rates are at about half that.” Furthermore, Efficient Frontier’s clients are paying for cost-per-clicks that are equal to that on search for conversions that are coming in at twice the rate. “When we analyzed the results, we were shocked. We didn’t expect to see that domain park sites can bring in the quality of traffic necessary to result in twice the conversion rates, at a cost-per-click that’s equal to that on search.”

See full article on PDF at: http://www.efrontier.com/efficient_f...ForDomains.pdf
Sorry. What exactly is a "domain ad" versus a "search ad"? Is a domain ad equivalent to ads on a parking page or to ads on a minisite?
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Old 7th June 2007, 05:53 AM
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Re: Domain Ads Generating Twice the Conversion Rate of Search Ads

Basically, type-in traffic to a parked domains. An ad on a parked domain versus search engine ads (Google AdWords for example shown to the right of organic search results).

This case study is also on Google's adwords site: http://www.google.com/adwords/casest...DCaseStudy.pdf

And some opposing views exist, but the rationale seems to support IDN. See example below:

In a blog entry called "Top 4 Lies Domainers Tell Themselves" at http://tropicalseo.com/2007/top-4-li...ll-themselves/

The #1 Lie is "Type-in traffic numbers are higher than you think, and growing." But the rationale supports IDN type-in....

He continues, "OK before you domainers launch your SCUD missiles at me, I do admit that with the REALLY big domains (e.g. Cars.com) certainly there’s a lot of type-in traffic. Not sure what the ratio is to search traffic, but of course for every 1000 searches for [cars] there is a certain fraction of that number typed into the URL bar as Cars.com. This fraction may also apply to 1.5-tier domains (e.g. UsedCars.com) but in my experience it does not apply to 2nd-tier domains (e.g. OhioUsedCars.com). As far as trends go, I think the facts are pretty simple. Most users stop typing something.com in the browser URL bar after they’ve used the Net for 6 or 12 months. Really, there is no reason to ever type in something.com once you have used Google. Yes, there will always be incoming (dumb) Net users, but in future years most of the new Internet users are going to be in the developing world (and thus harder to monetize). In America, nearly everyone who ever will use the Internet is already using it–and very few of us don’t know how to use Google."


Last edited by burnsinternet; 7th June 2007 at 05:59 AM.. Reason: Automerged Doublepost
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Old 7th June 2007, 06:35 AM
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Re: Domain Ads Generating Twice the Conversion Rate of Search Ads

Hi Burnsinternet,

Thanks for the post - interesting reading... at last some SEO stuff on the forums

Has got me thinking... after reading the link... does this mean that ".biz" IDNs will never perform as well as the ".com", ".net" or ".org" ones do?

Any thoughts / comments appreciated - thanks, Asiaplay
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Old 7th June 2007, 06:51 AM
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Re: Domain Ads Generating Twice the Conversion Rate of Search Ads

Dot com is usually the best. New users who type in words also never change the default domain from dot com. Some will type org or other in curiosity, but dot biz just doesn't get nearly as much type-in.
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Old 7th June 2007, 07:53 AM
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Re: Domain Ads Generating Twice the Conversion Rate of Search Ads

Wow!

It took them about ten years or so to figure it out.

How "shocked" would you be if you owned a carpet store and someone walked in and actually wanted to buy a carpet? Imagine!

Speechless.
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Old 7th June 2007, 09:50 AM
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Re: Domain Ads Generating Twice the Conversion Rate of Search Ads

Quote:
Originally Posted by burnsinternet
Basically, type-in traffic to a parked domains. An ad on a parked domain versus search engine ads (Google AdWords for example shown to the right of organic search results).

This case study is also on Google's adwords site: http://www.google.com/adwords/casest...DCaseStudy.pdf

And some opposing views exist, but the rationale seems to support IDN. See example below:

In a blog entry called "Top 4 Lies Domainers Tell Themselves" at http://tropicalseo.com/2007/top-4-li...ll-themselves/

The #1 Lie is "Type-in traffic numbers are higher than you think, and growing." But the rationale supports IDN type-in....

He continues, "OK before you domainers launch your SCUD missiles at me, I do admit that with the REALLY big domains (e.g. Cars.com) certainly there’s a lot of type-in traffic. Not sure what the ratio is to search traffic, but of course for every 1000 searches for [cars] there is a certain fraction of that number typed into the URL bar as Cars.com. This fraction may also apply to 1.5-tier domains (e.g. UsedCars.com) but in my experience it does not apply to 2nd-tier domains (e.g. OhioUsedCars.com). As far as trends go, I think the facts are pretty simple. Most users stop typing something.com in the browser URL bar after they’ve used the Net for 6 or 12 months. Really, there is no reason to ever type in something.com once you have used Google. Yes, there will always be incoming (dumb) Net users, but in future years most of the new Internet users are going to be in the developing world (and thus harder to monetize). In America, nearly everyone who ever will use the Internet is already using it–and very few of us don’t know how to use Google."

It's interesting. Most of this I believe but the last bit there about most users stop typing something.com after they've used the net for 6 to 12 months - that sounds a lot like a hasty conclusion devoid of a fact base to me . "Once you have used Google" is utter bollocks. Most users are dissatisfied with SE regardless of which one it is, most of the time.
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Old 7th June 2007, 10:07 AM
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Re: Domain Ads Generating Twice the Conversion Rate of Search Ads

Search can only be used as direct navigation if you type in the exact URL.

I believe that this might actually be going on when the Address bar does not make sense of the local characters that are type in. Search on your URL and click on the unique result that comes up and then and only then is Search equal to type-in. It is just means one extra task to perform.

When are these F*ckheads going to understand that whilst we may be grateful for having suggestions on where to look, we are not exactly happy with the idea of being told where to go, especially when we already know where we want to go but are being inhibited by Microsoft, Google and others from making that free choice?


Quote:
Originally Posted by rhys
It's interesting. Most of this I believe but the last bit there about most users stop typing something.com after they've used the net for 6 to 12 months - that sounds a lot like a hasty conclusion devoid of a fact base to me . "Once you have used Google" is utter bollocks. Most users are dissatisfied with SE regardless of which one it is, most of the time.
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Old 7th June 2007, 08:01 PM
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Re: Domain Ads Generating Twice the Conversion Rate of Search Ads

Quote:
Originally Posted by yanni
Wow!

It took them about ten years or so to figure it out.

How "shocked" would you be if you owned a carpet store and someone walked in and actually wanted to buy a carpet? Imagine!

Speechless.
LOL!
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Old 8th June 2007, 02:03 AM
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Re: Domain Ads Generating Twice the Conversion Rate of Search Ads

Won't apply to typo and tms for sure.
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Old 8th June 2007, 11:03 AM
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Re: Domain Ads Generating Twice the Conversion Rate of Search Ads

Quote:
Originally Posted by rhys
It's interesting. Most of this I believe but the last bit there about most users stop typing something.com after they've used the net for 6 to 12 months - that sounds a lot like a hasty conclusion devoid of a fact base to me . "Once you have used Google" is utter bollocks. Most users are dissatisfied with SE regardless of which one it is, most of the time.
My opinion, for what its worth is this...

Good keywords have always generated type-ins, even when in the last 5 years, most of those type-ins have ended up taking people to parked domains, which everyone pretty much agrees, haven't provided a great user experience.

But the trend is undoubtedly towards developing real sites on these good keyword domains. Big portfolio holders are finally starting to build out on their virtual real estate.

Which says to me the value of type-ins from the user perspective will grow and grow in the next 5 years. Imagine if you went to OhioRealEsate.com and you could be 90% sure there was a real relevant site there. Would you type-in other domains rather than googling everythiing? Of course you would.

Using the web is about habits, and habits can change.
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Old 8th June 2007, 06:03 PM
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Re: Domain Ads Generating Twice the Conversion Rate of Search Ads

My own thoughts around type-in traffic is that this is a sociological and psychological phenomenon which requires study. Until we understand who types in, why they type-in, and how frequently they type-in - no one really can claim to understand this phenomenon. We're all just sitting around speculating. People say its newbs but I don't believe it. Others say it's everybody but we only do it very occasionally, I'm not sure I believe this either. some say that type-in traffic is going down because of how good SE are, this I think is bullshit but have never seen evidence either way. The truth is no one knows anything about type-in traffic - if anyone has seen a quantitive or qualitative analysis please let me know I am dying to read it.
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Old 8th June 2007, 11:13 PM
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Re: Domain Ads Generating Twice the Conversion Rate of Search Ads

The parked vs searched controversy has a long history. However, no one really has any data. This was a groundbreaking study, many claim, but I don't have any idea about the methodology. In other words, we don't know if the conclusions are sound. However, it is the only thing I could find lately.
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