What exactly qualifies as “direct navigation” and does it result in higher conversions than search?
The domain industry typically defines direct navigation as the act of typing a common name into your web browser, such as baseball.com, when you are looking for information about baseball. This is an alternative to search, such as typing “baseball” into the Google search box.
There is frequent debate about the value of traffic that comes from direct navigation compared to search. Domain industry behemoth Marchex recently launched an updated advertising network for its 200,000 web sites. Advertising on this network comprises advertising on direct navigation sites as opposed to search. Marchex is advertising the network as a better alternative to search advertising, citing a study by WebSideStory that said direct navigation coverts at 4.23% while search converts at only 2.3%.
But the devil is in the details. WebSiteStory’s definition of direct navigation includes “bookmarks and URLs typed directly into the address bar. Also includes e-mails from non web-based e-mail clients and poorly implemented redirects where the referring domain is stripped out or masked.” Furthermore, direct navigation in the study might be defines as converting directly on the page typed into the browser, not necessarily converting after clicking on an ad on the site.
I suspect that bookmarks convert very high while direct navigation links convert at about the same as search. Someone who bookmarks an ecommerce site is very likely to purchase from the site in the future. Many of these people have purchased from the site in the past.
I know that direct navigation traffic is good. I advertise on direct navigation networks with excellent results. But to use WebSiteStory’s study the way Marchex is for its ad network is misleading at best.
In other Marchex news, the company announced that it swung to a loss for Q3. I have long been confused about Marchex’s strategy. It has acquired a massive amount of domains but has been slow to add value to them. Furthermore, it owns a number of businesses that are underperforming their peers. For example, Marchex owns pay-per-click search provider goClick, which is a poorly implemented pay-per-click search network. Just visiting goClick.com makes you think the product line is neglected and isn’t part of a large public company.
Syed says
I have always wondered how “conversion” is calculated. From my own personal experience, when I go to a site through a PPc link, I almost never buy the first time, so I dont ‘convert’. However, I amy bookmark the page if I like the site, or even just remember the url if its easy. Then I will visit the site several times in coming weeks directly and then I may buy. So did I ‘convert’ for the ppc? And how do they ever find out if I converted as I also regularly clean my cookies. Perhaps even use another browser or even another computer. The site itself may take all the credit for ‘attracting’ the customer while the truth is I never would have found them out if it hadn’t been for ppc link.
Editor says
If you clean your cookies or visit from another machine then you likely aren’t getting counted in the conversion. So there’s some “conversion loss” if you will. But most people don’t clean their cookies.
Stephen Douglas says
Direct navigation is sort of an out-of-place phrase defining the process of typing in a domain name that matches a search phrase.
You want SOLAR HOME DESIGN, so you type Solarhomedesign.com and see what comes up.
Usually, you’ll get a company that is smart enough to own that domain so it will get the highly targeted visitors who think the company that owns that domain is probably the most qualified, or…
you get a landing page that features all the links of companies who are buying clicks on their ad links for a bidded up price per click. The owner of the domain gets a piece of the payment the advertiser pays for their ad to appear on the site where people are typing in the domain name and coming to that site.
You’d think most companies who advertise online would have figured this out by now, but unfortunately for them, they’re bogged down in ignorance and a failure to understand one thing: the domain owners are making money off the companies who advertise with the search engines who feature their ads. Why would the SMART company then just buy the domain that is defining their product or service and take advantage of all the visitors themselves?
The answer is, soon, these internet marketers will learn, and then the rush will be on to buy up all the domains that define their generic definitions of the products they sell.
I tend to call direct navigation “browser searching”. Its more clear to the user… type in the topic you are searching for, add a .com, .net, .org, .info, whatever extension you want, and see what comes up.
IN the near future, every domain that defines something that is sold, or understood to mean something, will be purchased and used to point to a website. Why? Because internet users will type in “solarhomedesign.com” to find a company that can give them solar home design.
http://www.domainrelevance.com
Stephen Douglas
Successful Domain Management™
DomainRelevance.com
“Own Your Competition™”
Jon says
Regarding Marchex, I do agree they have been slow to add, but I think they have wanted to maintain very good EBITDA margins.
As far as the qaulity of their names now, it is improving.
Below are examples of Marchex domains. A great list.
Also, the business can grow through search engines. Search for “delis” on google. Marchex delis.com is #4 entry.
http://www.google.com/search?hl=en&q=delis
If they can continue to develop these domains, they can get search engine traffic as well as direct navigation.
http://www.myzip.com
http://www.eyesurgeons.com
http://www.exterminator.com
http://www.homeinspections.com
http://www.locksmiths.com
http://www.ovens.com
http://www.podiatrist.com http://www.refinancing.com
http://www.remodeling.com http://www.yardcleaning.com
http://www.bostonautorepairs.com
http://www.bostonbeautysalon.com
http://www.bostoncarpetcleaning.com
http://www.bostoncosmeticsurgeons.com
http://www.bostonchildcare.com
http://www.bostonhomeequityloans.com
http://www.bostonticketbrokers.com
http://www.bostonmortgage.com
http://www.bostonveterinarian.com
http://www.newyorkcarpetcleaners.com
http://www.newyorkcashadvance.com
http://www.newyorkfurniturestores.com
http://www.newyorkhealthinsurance.com
http://www.newyorkhomeloans.com
http://www.newyorkinteriordesign.com
http://www.newyorklawfirms.com
http://www.newyorkmodelingagency.com
http://www.newyorkrealestateattorneys.com
http://www.newyorkhairsalons.com
http://www.sanfranciscoattorneys.com
http://www.sanfranciscoautoglassrepair.com http://www.sanfranciscoautorepairs.com
http://www.sanfranciscobeautysalon.com
http://www.sanfranciscocarinsurance.com
http://www.sanfranciscocarpetcleaners.com
http://www.sanfranciscochiropractors.com
http://www.sanfranciscoeyedoctor.com
http://www.sanfranciscopestcontrol.com
http://www.sanfranciscoveterinarians.com
http://www.seattleautorepairs.com
http://www.seattletaxlawyers.com
http://www.seattledentalinsurance.com
http://www.seattledivorceattorney.com
http://www.seattlefurniture.com
http://www.seattlehomeequityloan.com
http://www.seattleinsurance.com
http://www.seattlepestcontrol.com
http://www.seattlestorageunit.com
http://www.seattleveterinarian.com
http://www.90210.com
http://www.10041.com
http://www.lasvegasvacations.com
http://www.anaheimrestaurant.com
http://www.bestnewyorkrestaurant.com
http://www.laketahoefood.com
http://www.neworleansrestaurant.com
http://www.newyorkbagels.com
http://www.newyorkcuisine.com
http://www.newyorkdining.com
http://www.nycfood.com
http://www.rhodeislandfood.com
http://www.sanfranciscofinedining.com
http://www.santabarbarafood.com
http://www.seattlefinedining.com
http://www.sonomarestaurants.com
http://www.burrito.com
http://www.chinesetakeout.com
http://www.delis.com
http://www.dimsum.net
http://www.frenchrestaurants.com
http://www.japaneserestaurant.com
http://www.restaurantonline.com
http://www.sushibar.com
http://www.bostonmotels.com
http://www.chicagoluxuryhotels.com
http://www.chinahotelbookings.com
http://www.newyorkhotelrates.com
http://www.sanfranhotel.com
http://www.shanghaihotel.com
http://www.stmoritzresort.com
Marc Trachtenberg says
With regard to Mr. Douglas’ question of “Why would the SMART company then just buy the domain that is defining their product or service and take advantage of all the visitors themselves?” While I don’t diasgree that most companies don’t get it, I think that this is irrelevant becuase most of these domains have already been snatched up by domain speculators. Particulary in light of all the domain tasting that is occuring via automated registation programs that match words together and keep anything that might generate the cost of registration in PPC revenue over a year (which could be as little as one click), for the most the only domains available that describe products and aren’t 30 characters long, describe products that are not well known yet.
Marc H. Trachtenberg, Esq.
Ladas & Parry LLP
Ladas Domains LLC
Editor says
Marc, I think I can speak for Stephen when I say he’s not suggesting companies go out and register generic domains. He’s suggesting they buy these domains from their existing owners. It’s worth the cost.