Domain Parking Industry Faces A Shakeout
The business of advertising on parked domains is facing a shakeout that could dampen speculation in the domain name market. The domain advertising business, which is based on pay-per-click advertising from Google and Yahoo, has seen explosive growth this year. This week one of the industry's largest players, DomainSponsor, announced that it was shifting its payment model to combine pay-per-click and pay-per-sale ads.
The shift is driven by advertiser concerns about low conversion rates on click-throughs from parked domains. While the new model offers higher payouts for domains that generate sales, it will also mean smaller checks for domains that produce click-throughs but no sales. It also reduces the incentive for click fraud, which is believed to inflate the cost of campaigns in some advertising niches.
posted by Fergie @ 10/26/2005 01:51:00 PM
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