Displaying posts tagged under "Domain Parking"
Company hit with parking clawback from a previous quarter.
Ask any domain parking company about their top frustrations, and clawbacks will be high on the list. Basically, their upstream ad partner will clawback previously paid revenue based on traffic quality. This often happens after the parking customer has paid its partner.
These clawbacks can apparently be quite big, as evidenced in today’s Demand Media earnings call.
Speaking about a tough third quarter, Demand Media CFO Mel Tang noted that a parking clawback was one of three factors that hurt earnings in the quarter:
Results were impacted by 3 main factors: lower search engine referrals, causing additional traffic declines, softer-than-expected display advertising revenue and an adjustment from an advertising partner related to activity on certain third-party domains prior to the third quarter that negatively impacted revenue and EBITDA.
In this case it appears the clawback was from an earlier quarter. It must have been significant to warrant mention on the conference call. [Update: from Demand Media's 10-Q, the clawback was $1.6 million.]
Later in the call, Tang elaborates on the clawback:
Yes. So basically, related to a catch-up adjustment that we got notified of quarters after, I think the traffic quality was identified. And so it was unexpected in the quarter, it came in, in fact, sort of right as the quarter was closing. And so we put additional processes and communication lines in place with that partner to ensure that we don’t get a negative surprise like this in the past, that we try and be very rigorous in terms of who we onboard into that system. But at times, it’s hard to see who’s — what people are putting through. But we’re working very closely with that partner to ensure again that there isn’t sort of such a delayed negative surprise.
Also on the earnings call, Demand Media broke out revenue between the company’s content business and the domain name spinoff called Rightside.
In Q3, domain services revenue, which primarily represents domain registration fees and value-added services, was approximately $36 million. Aftermarket services revenue, which represents premium domain sales and advertising revenue from Rightside’s own domains, was approximately $10 million.
It seems that the business is not doing very well from a growth perspective. Domain services revenue was up mostly due to the Name.com acquisition, and Aftermarket was down 7% year-over-year. In Aftermarket, growth in domain sales partially offset a domain parking revenue decrease and the clawback.
No wonder Rightside is looking forward to the introduction of new top level domain names.
Internet Traffic asks customers to identify themselves as part of new Google initiative.
One of the topics discussed extensively in the hallways at Webfest this year was changes Google is making to its parking program.
Although I don’t have all of the details, the bottom line is that Google is making an effort to better identify who is actually parking domains using its ad feed. This may involve steps to identify people across the various parking companies that use Google.
Today Internet Traffic customers saw what appears to be the first sign of these changes.
The company sent an email to customers asking them to agree to a couple terms and provide detailed contact information.
The terms are basic and are already in all parking companies’ terms: that you won’t click on ads on any of your domains and won’t provide incentives for others to click.
I’m not sure how this will be implemented across the different parking companies, but you can expect to see some of the results of these changes in the coming months. And my understanding is that there are other parts of this initiative that you won’t see.
Cutts recommends taking down a parking page about a month before launching a new site.
Google web spam czar Matt Cutts just published a video in which he asks himself a question (rather than taking it from the community): should I keep a domain name parked before I launch a web site?
In short, Cutts says no.
He works in a reference to eNom’s backpack girl and then goes on to explain that Google has a filter to try to keep parked domain names out of its search results.
This filter doesn’t immediately know when a domain changes from a parked page to a “real” web site, so he recommends putting up a placeholder page 3-4 weeks before launching a site.
That placeholder page can be something as simple as “coming soon” with a few lines of text — just make sure it’s not an ad-filled parking page.
Here’s the video:
ccTLDs, domain parking, and more make the top five list.
If August is over, why is it still 100 degrees in Austin? Sigh…
Here are the top 5 news stories from Domain Name Wire last month.
Oops, I entrusted my domain name to a tiny island nation! –
think about political and technical risks before setting up your web site on a country code domain name.
Wow: Craigslist loses Craigslists.com domain dispute – so this guy creates a list, and his name is supposedly Craig, and…it’s kind of a funny story.
Meet the woman who bought a domain name instead of a house – entrepreneur plunked down cash for Posse.com.
Sedo says domain parking continuing to decline, writes off EUR 57.1 million – increased competition is a key reason companies such as Sedo are seeing downward business pressure in domain parking.
Your domain names are worth less than you think – or, stop hating on other peoples’ domains and put your money where your mouth is.
Browser features change the way people navigate the web.
Last week I wrote about how Sedo’s domain name parking business continues to struggle.
The company cites a few reasons for the decline, including “advances made in browser technologies, which alters the circumstances surrounding monetization in the parking business”.
I asked Sedo about what it is seeing from a direct navigation standpoint and why it thinks browser changes are affecting its business. Here’s what Sedo CEO Tobias Flaitz has to say about it:
In general, new browser technology and browsing trends are changing the way people navigate the web. For example, those of us who browse the web using Google Chrome see no differentiation between the URL bar and the search function. This means that more users are typing searches, and not domain names, directly into the URL bar. Auto-fill technologies and search algorithms are also improving rapidly, so browsers do not accept as many misspellings. Overall, this means that browsing often begins with a search instead of direct navigation, which inevitably affects type-in traffic to parked names. However, any web user who knows a site’s URL or is interested in purchasing a domain can still navigate to that domain name directly.