Branded Domains vs. Generic Domains

[Andro 152]

Branded Domains vs. Generic Domains

By Dan Warner

COO, Dark Blue Sea & Fabulous.com

 

http://www.dnjournal.com/articles/series/w...-vs-generic.htm

 

What is a user actually looking for when they type in a domain name? Most of the time people are looking for web sites that they have seen on television, heard on the radio, read off the back of a cab, or have been exposed to through some other form of media. All of these are examples of branded domains.

 

The purpose of this paper is to provide a discussion piece to compare and contrast the difference between the quality, handling and long term value of branded vs. generic domains. This paper will not discuss trademark domain disputes, customer service issues, or the effects of brand erosion that may be associated with domain use in cases where the domain is not being used by the brand owner.

 

 

Branded Domains are domains that people type into the address bar because they have heard of the domain before. Most branded domains are associated with existing business names, products, or popular web sites - which may or may not have a trademark. However, the user’s primary purpose when they type these domains into the address bar is to find popular web sites. Examples include: DellProducts.com, Yahoo.com, ToyotaTrucks.com, FitnessFirst.com

 

Generic Domains are inherently just that, generic. These domains do not construe any association with any known business entity other than what is represented by the domain itself. They are typically descriptive in nature. The user’s intent when typing them into an address bar is likely to be an expression of searching behaviour, with the view to find or purchase new products or services. Examples include: ConstructionTowerCranes.com, HoustonTools.com, Chairs.com, OnlineGames.com, SeattleBoating.com

 

Case Study: SonyPlayStazions.com

 

(...)

 

The rule: If the user’s intent is successfully aligned with advertiser content that addresses the user’s specific needs - then the traffic quality of conversion will be high. In contrast, if the content is not what the user is really looking for - then the traffic quality is reduced.

 

In the case of trademark related traffic, it is most likely that the trademark owners are the most qualified to convert this form of traffic. In fact, in many cases this traffic is already sold back to the trademark owner via advertisements in the search engines.

 

Branded Domain Asset Value – the domain sales aftermarket places a high importance on the value of the revenue which domain traffic generates. In many cases the only valuation considered is a revenue multiple of the domain traffic revenue. Of course, this is a very poor way to value domains. Traffic is conceptually only the rent collected from the land, as domains represent the land of the internet. When valuing real estate buyers do not just look at the road traffic near the land they are considering buying. They also look at the neighbourhood, previous use, and what the zoning is - which are all reflections of the potential future use of that land. It takes an exhaustive and lateral view to understand the true value of a domain, and traffic revenue is only one of the key criteria.

 

The greatest value attributed to a domain is not its traffic revenue; a domains greatest value attribute is its brand value. Respectively the problem with the sales value of branded domains is that they generally have very confusing or poor attributable brand value.