Company files patent application for ranking algorithm.

Demand Media has content revenue prediction down to a science. The company has an army of freelancers who produce content based on the company’s prediction of how much ad revenue each piece of content will bring in. Now the company wants to patent its methodology for figuring out which keywords are the most profitable.

U.S. patent application 12/337550 is for a “Method and System for Ranking of Keywords for Profitability”:

A physical computing device receives information regarding a total number of people who are searching on the search term. Information is received regarding an amount advertisers pay for the search term. Information is received regarding a click through rate of the search term. A traffic estimate of the search term is determined. Longevity of the search term is determined.

One embodiment of the invention covers many of the steps people take to figure out which keywords are best:

(1) the number of likely audience members for each search term,
(2) the likely dollar amount advertisers will pay for each search term,
(3) the likely click rate for each search term,
(4) the ability of content targeting a given search term to compete with other content targeting that same term, and
(5) the estimated longevity of content created relating to each search term.

Most publishers — even domainers — take into consideration the first three factors. The ability to rank content in search engines is also taken into consideration by most publishers. (There are a number of inexpensive software programs that will crunch these numbers for you.) The longevity of content is something that may be a little unique, in that Demand is trying to figure out how long it can expect to get revenue from content it produces for a particular search term.

The patent application (pdf) was filed in December 2008 and published yesterday.

(Hat tip to DNW reader Paul.)

Video game creator shoots bullseye with domain name purchase.

A long awaited video game has a new home on the web – Rage.com.

ZeniMax Media Inc. purchased the domain name from a man in Great Britain for $49,999, and is now forwarding the domain name to rage.bethsoft.com (Bethsoft is the publisher). The deal was handled through Sedo. The seller moved his web site to RageLive.com.

That a company would spend so much for a domain name for a video game should come as little surprise. Video game making has become a huge financial undertaking, and $50,000 is just a drop in the bucket. Plus, Rage has been a much-hyped video game, first announced in 2007. Back then id Software introduced the idea for the game, and ZeniMax since acquired the company. At one point video game giant Electronic Arts was also involved. The latest word is that the game isn’t coming out until next year.

Three inactive registrars terminated for failure to pay accreditation fees.

ICANN has sent notices of termination to three domain name registrars for failure to pay past due accreditation fees.

Each of the three domain name registrars — Abansys & Hostytec, S.L, NameHouse, Inc., and Gee Whiz Domains, In.c — owe between $7,000 and $13,500 each. According to the termination notices sent to each registrar, ICANN sent numerous notices to the registrars notifying them that they were past due on payments. NameHouse has been receiving past due notices since 2008.

But these aren’t just deadbeat registrars — they’ve literally been dead for a while. ICANN records show that none of the three domain registrars currently have any domains registered to them. Perhaps it’s time for ICANN to do a little cleansing of its own. If any registrars currently have no domains registered, send them a letter and see if they wish to continue their accredited status. If they’re more than 6 months behind on payments, send them a notice of breach. It’s time to cull the list, which will make it easier for ICANN to focus on compliance.

Prices increase next month, so now’s a good time to take a hard look at your portfolio.

The cost of registering or renewing a domain name will increase at most domain name registrars on July 1. This is thanks to an increase in the wholesale cost of registration courtesy of VeriSign. The company is increasing the price of .net domains 10% and .com domains 7%.

That makes the next couple weeks an ideal time for domain investors to take a good look at their portfolios. Consider renewing any domains now that will expire before the end of the year. Look into transfer specials available at other registrars. And, most importantly, take a good look at your overall portfolio.

I just finished this process. This year I’m letting more domains expire than I ever have in the past. Not much has changed; it’s just that in years past I glossed over how much I was spending on domains I didn’t want any more. Hitting the renew button is an easier mental exercise than thinking about if you want to let a domain name go.

The domains I typically let go fall into three categories:

1. Previously expired domains that had web site traffic. Over the years the traffic disappears. The underlying domains have little value.

2. Trend domains that didn’t pan out. This includes speculative jargon and buzz words that flamed out quickly rather than taking off.

3. Non .com domains registered for web projects that I canned. Whenever I have an idea for a new, fully-built out web site I often register non .com variants and .com typos of the actual web address. If I give up plans for the site it doesn’t make sense to hold onto these variants.

My thoughts after a couple days with the iPad.

My wife bought an iPad for me for Father’s Day. She can’t keep a secret so she gave it to me as soon as it arrived in the mail. I’ve had a couple days to play with it, which has given me time to reflect on what apps might do to domain names.

So far I’m going to agree with Jason Fry. Basically, the apps that correspond to web sites are subpar at best, and the actual web sites suffice. Score one for navigating by domain names.

That’s not to say that companies won’t try to move traffic from their web sites to paid apps. When I visit Cardinals.com to get a score update, I can’t view the score. Instead I see a message asking me to download MLB’s $15 iPad app. This sort of bastardization of the web, courtesy of Apple’s own ideas of what makes the web good (e.g. no Flash), does not result in a good user experience. Nonetheless, if I want to see how the Cardinals are doing, I either need to go to ESPN.com or buy MLB’s app.

But most apps are from big web sites. That just means less traffic for typosquatters since users will directly navigate to the content via an app instead of (mis)typing the domain names.

The iPad isn’t a Kindle killer, either. The iPad is a poor choice for an eBook reader if you read full length books. Compared to the Kindle it’s much heavier and bigger, strains your eyes, and can’t be read in sunlight. If people use these to read books we’re going to have a whole generation of people with long term wrist injuries. That said, the iPad presents a much better experience for reading news, which could cut into Kindle’s revenue for periodical subscriptions.