If you're new here, you may want to subscribe to my RSS feed. Why not follow me on Twitter, too? Thanks for visiting!
Henry Blodget has analyzed the change in advertising spending and its shift from traditional media to the Internet throughout the last year. The final results are not surprising, but they’re pretty impressive:
Google could add more than $2.6 billion in advertising revenue in 2007, which constitutes a 44% increase over the company’s 2006 revenue. In total, Google made about $8.7 billion.
Microsoft had good results, too. The Redmond-based corporation could grow its advertising revenue by 32% to a total of about $2.1 billion. Yahoo’s ad revenue was higher than in the previous year as well, although Yahoo could only increase its ad revenue by 8%.
Traditional media companies have not performed well at all. For instance, the New York Times earned 6% less than in 2006 (print ads only) and CBS saw a 4% decline in TV ads and a hefty 10% decline in revenue from radio ads.
These numbers make it obvious that advertising dollars are continuing their migration to the Internet. In 2006, online versus offline advertising spending was 26% vs. 74%. At the end of 2007, it was at 30%/70% already. The rate at which advertising spendings shift will only increase in the next few years. Media companies have no choice other than to promote their presences on the web if they don’t want to lose their advertising clients to the well-established web companies and websites.
For details, see this online spreadsheet.
This will only increase the value of generic names and developed websites. I still think parking is a better service than leaving a website blank but enabling advertisers to avoid parking sites will certainly affect renewals on iffy domains and income. I guess the question is what is a parking page. Must a “real” website be updated daily, weekly? Interesting times, hold on to your premium generics, dump the not so premium’s.
Cheers,
Steve
Interesting article and reply from Steve.
The marketing of products and services is very much moving online as the potential for more customers is increasing exponentially.
The domain name owner should hold a variety of generic domain names in his/her portfolio which should include .com’s and other domian name extens. including country codes as well.
Some domain names should be developed into websites with QUALITY content and the others should be parked.
As many more Businesses worldwide progress towards the Internet the domain name owners will greatly profit from it.
The domain name owners which can stand strong and not sell their domain name to the first business that gives them an offer on the domain name of their interest will cash in big time in two years for sure.
Recent article mentioned at DirectNavigation.com from the NY Times confirms premium generic’s value.
Personally, my sites stats show 60-65% of my traffic is direct navigation!
Best,
Steve
link;
http://www.nytimes.com/2008/03/10/business/media/10drill.html?_r=2&oref=slogin&oref=slogin