Just wanted to bring up an issue that is not often discussed because the current situation is simply taken as for granted – that parking companies are always hostages of one upstream ppc feed provider – that being either Google or Yahoo, which they have to deal with exclusively. Since they know that the relationship is key to their existence, they are very limited in other ways how they can monetize their partners’ domains (the only exception is banned domains for which they can bring in second tier feed providers etc). This prevents innovations in domain monetization.
This arrangement is severealy hurting domain owners and my belief is that certain anti-monopoly style authorities should look into these arrangements. For example I believe that if parking companies would be able to mix both Google and Yahoo together (even on one results page), there would be roughly a 20% uplift of earnings for domain owners. It would also force G/Y to pay out more because they would be competing head-to-head for every click. However both G & Y force exclusivity onto the domain channel with every parking company. There are companies that have both feeds – such as Infospace – but those cannot be used on the domain channel. If Infospace can have both, why not the parking companies?
Incoming search terms:
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- infospace ppc feed
#1 by Isaac on July 23, 2010 - 18:49
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Problem is, Jan, is that there are still only 2 main feed providers. And it looks to stay that way for a long time. We have no direct access to these feeds either. We have to go through middle-man after middle-man, and even a “direct” google feed has its own limitations in terms of revenue share etc.
Now the proposed solution to this problem in your post would increase earnings significantly. However, that is why they have the exclusivity contracts in place. They pay us the very last end scraps, and they really have no competition.
The reason there is no competition because there is only one real search giant. Google, and until something takes the reigns from Google it is going to stay the way it is. Our industry relies solely on the success of one company. Yet it is a billion dollar industry.
#2 by OliX on July 25, 2010 - 02:34
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I think domain market is so small that authorities won’t even bother with it and better leave it as is. It will never grow to the point where some rules will do better than current chaos.
#3 by SirLoin on July 25, 2010 - 23:22
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If what Isaac said was true (parking companies have to rely on Y/G) than it is just question of time when a smart businessman will start doing this, inventing a way which would makes this possible. There is great competition between parking companies, what about to compete in this field?