Is it soon GAME OVER for parking companies?

[Chappy]

From DomainName Wire:

Google Lets Advertisers Opt Out of Domain Parking Sites
Thursday, March 13th, 2008
Advertisers can exclude ads from showing up on parked domains; lower revenue ahead?

Google Adwords has added a new feature that allows advertisers to exclude ads from showing up on domain parking sites. This will affect parked domains on any of Google’s ad feeds, regardless of whether it is the “search” feed or “content” feed. Examples of domain parking companies using Google include DomainSponsor and Sedo.

To opt out of domain parking pages, advertisers use the “Site and Category Exclusion” tool in their account (see picture below). In addition to being able to opt out of parked pages, customers can opt out of error pages, forums, social networking sites, image sharing sites, and video sharing sites. Forums and social networking sites are known to have low click through rates, and conversions can also be low.

Earlier today I wrote about the importance of domain parking companies policing their traffic and suggested that the major ad networks would start letting people opt out of domains. I guess this was all too right.

On its web site, Google states that it has found results from domain parking pages to perform as well as similar types of ads. And its opt out tool lets users see their conversions on each type of page, too (a change from previous transparency). But let’s face it: the idea that domain parking ads convert well doesn’t make sense to many advertisers. Couple that with the amount of fraud, and you can bet that a number of big advertisers will opt-out of domain ads. (Previously, advertisers could opt out of the content network, but many parked pages are in the search network.)

Bottom line: lower results for Google domain parking customers in the short run.

In the long run, if domain parking companies police their traffic, then advertisers will see higher conversions on domain parking. Maybe I’m dreaming, but perhaps Google would let advertisers bid more for domain ads.

 

[netfleet]

This is significant news. Could go either way.

Either ignorant or conservative advertisers opt out assuming that traffic quality from parked domains will be inferior

Or, if the conversions etc are broken down by type and parked domains aren't just placed in the large Content basket (with the poor perfoirming social networking sites etc), some advertisers may actually start to advertise on parked domains if they can see results.

 

[Broker]

Anyone think this will make domain names even more valuable in some way?

 

[networkmsia]

I am sure those parking companies will find some other creative ways to overcome these problems.

 

[Spade]

Its simply time for change. The internet is growing, the demand and use is growing and its time parking companies changed how they do business. Instead of flat pages with simple advertising, its time to get creative and expand on how pages are monetized. You'll find their is plenty of room to grow in this sector, and infact - perhaps more money. More advertising dollars are being put online, just need to find new and creative ways to carve out a share of it.

Justin

 

[snoop]

Was a long overdue change, it won't be game over, just less money flowing into the domain space. Having said that a bit of a shakeout with parking companies is happening.

Anyone think this will make domain names even more valuable in some way?

Definately not.

 

[NameBuyer.com]

I think it all depends on how it is presented to the end user in the AdWords interface. I cut out all the "content network" advertising a long time ago for our online retail business because after spending the same amount as the "search network" we had $0 in sales as compared to $2,000-$3,000 for the "search network". So if now I had the option of advertising on parked domains, rather than AdSense ads on blogs and article sites where users are accidentally clicking on ads while scrolling down or trying to navigate the page, I would definitely try the parked domain route if it became an option that I could pick exclusively. Just look at how close the AdSense ads are to the "Post Reply" button on the bottom of this page. Why should domains be grouped together with this traffic?

On the other hand, you have to realize that even though Google and Yahoo are involved in supplying domain parking advertisements, domain parking is the only direct competition that search engines have (Up to 10% of traffic comes from parked domains as opposed to 80% search engine). It is in their best interest to make parked pages look as bad as possible to the end users and the advertisers. Because if there are no decent ads, users will get away from typing in domains, and if it is presented to advertisers in such a way that insinuates it is lower quality traffic we'll see a gradual decline in the domain parking advertisments. The end result is more people using search engines where Google and Yahoo take 100% of the profits rather than 50-60% that they get from domain parking ads.

 

[snoop]

The end result is more people using search engines where Google and Yahoo take 100% of the profits rather than 50-60% that they get from domain parking ads.

The search engines make a heck of a lot less than 50-60% from domain parking traffic, sub 30% is more like it.

 

[NameBuyer.com]

The search engines make a heck of a lot less than 50-60% from domain parking traffic, sub 30% is more like it.

I know they don't disclose the amounts they make, but I was just basing it loosely on my experience when I was advertising for web hosting and paying over $2.50 per click just to be on page number 3-5, but yet when I have a parked page that has web hosting ads I get paid an average of $0.47 over the last 20 clicks. This doesn't even take into consideration that Google no longer allows for multiple clicks from the same visitor, even though they sure enough collect on multiple clicks from the advertisers.

 

[goodkarmaco]

Good points Namedrive,

they are even taking away multiple clicks, yet pocketing those clicks for full profit to themselves. Yes, what is the answer?. I personally hate the look of Google ads on my developed web sites. They could do alot better, for instance change the font to make them look more appealing.

For that reason I can see no value in making my own site for every domain I have as my options are Google adsense or banners. Banners are ok for high traffic web sites but not the average parked domain names.

So what can be done to monetize our huge inventory of domain names if domain parking is getting attacked?

 

[snoop]

I know they don't disclose the amounts they make, but I was just basing it loosely on my experience when I was advertising for web hosting and paying over $2.50 per click just to be on page number 3-5, but yet when I have a parked page that has web hosting ads I get paid an average of $0.47 over the last 20 clicks. This doesn't even take into consideration that

Need to factor in the middleman split and smartpricing. Were you paying $2.5 to be on the content network or search network?

Google no longer allows for multiple clicks from the same visitor, even though they sure enough collect on multiple clicks from the advertisers.

Where did you read this? I'm pretty sure you'll find this is your parking companies policy not to pay this to you, not google's.

 

[NameBuyer.com]

Need to factor in the middleman split and smartpricing. Were you paying $2.5 to be on the content network or search network?




Where did you read this? I'm pretty sure you'll find this is your parking companies policy not to pay this to you, not google's.

It seemed to me that all the parking companies that used the Google feed did this at around the same time, and it was about the same time that AdSense stopped paying for each click. At the same time Fabulous and the other large Yahoo based parking company (can't remember if it was Parked or NameDrive) were offering multiple clicks. I might be wrong, but are there any other Google based parking programs that pay out for multiple clicks?

http://www.webmasterworld.com/forum89/1899.htm

My complaint with the industry as a whole is that the real numbers are kept from us...when we are the owners of the domains and the traffic. If you go to any parking company, it is dificult to figure out what the actual revenue share is. The only parking company that even discloses an accurate and probably honest revenue share is GoDaddy at 80%, but their templates and lack of having a link to a "for sale" page leaves a lot to be desired for serious domainers. Although, in my reseller account with GoDaddy, I was impressed with how they showed the amount they received, then showed your 80% share that you receive. That is the way all of the parking should be run as far as statistics, with all the revenue numbers disclosed. Otherwise there is no way to know if your parking company is scraping off all the revenue from extra clicks for themselves, or if Google is taking the revenue from the extra clicks. At least with that info you could switch to a Yahoo based parking for a particular domain(that is, if Yahoo based programs are still paying multiple clicks?). What if you have a domain where 25% of the visitors are clicking on multiple ads? Shouldn't we know this kind of information...

http://www.namepros.com/parking-and...69-what-stats-do-parking-companies-shave.html

Sorry about going off topic a little with this post. It is still related, but farther from the originial question.

 

[goodkarmaco]

Nameimprove,

you make some very good points, but even citing Godaddy stats and how the figures show up I have this to say.. it would be pretty easy to make a template with say 50% less amounts shown. For instance they could show they got $1.00 and so you get .80 cents. But what if you are seeing more smoke and mirrors and Google really paid Godaddy $2.00 for the click. To add insult to injury they may have got (3) clicks, yet showed you (1) click.

What we need is a checks and balances way to prove if the stats are correct.

 

[Sakura]

Nameimprove,

you make some very good points, but even citing Godaddy stats and how the figures show up I have this to say.. it would be pretty easy to make a template with say 50% less amounts shown. For instance they could show they got $1.00 and so you get .80 cents. But what if you are seeing more smoke and mirrors and Google really paid Godaddy $2.00 for the click. To add insult to injury they may have got (3) clicks, yet showed you (1) click.

What we need is a checks and balances way to prove if the stats are correct.

Smokes and mirrors are always the common thing.

 

[goodkarmaco]

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[NameBuyer.com]

Nameimprove,

you make some very good points, but even citing Godaddy stats and how the figures show up I have this to say.. it would be pretty easy to make a template with say 50% less amounts shown. For instance they could show they got $1.00 and so you get .80 cents. But what if you are seeing more smoke and mirrors and Google really paid Godaddy $2.00 for the click. To add insult to injury they may have got (3) clicks, yet showed you (1) click.


Godaddy posts of earnings may be spot on I don't know for sure, just throwing this out there. It is nice to see some company doing this, even if we have no idea if the stats are honest.

What we need is a checks and balances way to prove if the stats are correct. Some outside party in partnership with domainers who can verify the stats comes to mind.

I completely agree that there needs to be checks and balances to prove the stats are correct. The foremost problem is that the 2 big ad suppliers (Google and Yahoo) will never let us know what they are making or disclose real profit sharing stats, they will just kick down whatever will keep us and the parking companies content. The parking companies can and should be sharing their revenue stats on our account and disclosing the sharing percentage with us. The parking companies are nothing more than a middle man between the traffic suppliers (us) and the potential customers (from google or yahoo). If Yahoo or Google started a viable end user parking program, all the parking companies would be out of business within a year because domainers don't know how much of the revenue the parkng companies are really taking. I really have a hard time with the secretive position most parking companies are taking on this. If they had value added services such as auctions and selling domains as Sedo has, and were honest about the profit sharing numbers, I think they would have a much more loyal group of domainers that would allow them to compete and survive if Google or Yahoo ever started their own parking program.

I also agree that all the GoDaddy stats could be made up as far as what they are making, but at least it is a step towards disclosing the stats. If all the parking programs were doing this, at least I could be comparing apples to apples when choosing where to park this name or that name. If those GoDaddy numbers are accurate, then they are hands down doing the best thing for the industry that any one company can do.

(Note that they only do this in their reseller program WildWestDomains.com, but not in their CashParking program. Though they say the CashParking program is 80% revenue share, so it equates to the same thing I guess.)

 

[goodkarmaco]

Nameimprove,

you say you have a hard time understanding why the parking companies are so secretive. If it was cut and dry and put out there, there would be no way to "cook the books" so to speak. Of course I am not in any way saying this is based in fact, only speculation running one way. Of course the other way is they are great partners and are doing the right thing.

 

[cache]

this is not good for parking company

 

[snoop]

It seemed to me that all the parking companies that used the Google feed did this at around the same time, and it was about the same time that AdSense stopped paying for each click. At the same time Fabulous and the other large Yahoo based parking company (can't remember if it was Parked or NameDrive) were offering multiple clicks. I might be wrong, but are there any other Google based parking programs that pay out for multiple clicks?

http://www.webmasterworld.com/forum89/1899.htm

My complaint with the industry as a whole is that the real numbers are kept from us...when we are the owners of the domains and the traffic. If you go to any parking company, it is dificult to figure out what the actual revenue share is. The only parking company that even discloses an accurate and probably honest revenue share is GoDaddy at 80%, but their templates and lack of having a link to a "for sale" page leaves a lot to be desired for serious domainers. Although, in my reseller account with GoDaddy, I was impressed with how they showed the amount they received, then showed your 80% share that you receive. That is the way all of the parking should be run as far as statistics, with all the revenue numbers disclosed. Otherwise there is no way to know if your parking company is scraping off all the revenue from extra clicks for themselves, or if Google is taking the revenue from the extra clicks. At least with that info you could switch to a Yahoo based parking for a particular domain(that is, if Yahoo based programs are still paying multiple clicks?). What if you have a domain where 25% of the visitors are clicking on multiple ads? Shouldn't we know this kind of information...

http://www.namepros.com/parking-and...69-what-stats-do-parking-companies-shave.html

Sorry about going off topic a little with this post. It is still related, but farther from the originial question.

You seem a bit all over the place with these comments, Fabulous is google based program and most parking co's do disclose the revenue share.

 

[aLeeOnline]

parking companies will be switching to new grounds now.. life's miserable for them i guess..