Evolution of the online advertising market in periods of uncertainty

In recent months, Internet advertising is evolving so disparate, and that directly affects sectors such as insurance or parking domains.

I never believed in the parking domains, in fact I believe as a "necessary evil" and not always make me feel worthless "bread for today and hunger for tomorrow." I am also particularly critical of the negatives that are the domain parking systems for positioning web, if they want to develop or develop a domain will have to pass a filter to Google for months to position yourself on many occasions.

Still, as I was saying the car parks are a necessary evil when we are more than 1,000 domains. Something must be done with them.

For some years we worked with SEDO, not only the purchase and investment in our portfolio, but its own domain parking system. I think technologically optimization, content and quality of the current system of domain parking is much improved, in fact I am surprised SEDO a company that is developing as it should be 2.0 parking systems, more proactive, dynamic, multimedia, Self contained by the user and providing something of value, not just being an advertising medium sterile.

Yet our experience this last year has been very positive, growing up to 100% revenue from parking domains within SEDO.

I think that first of all due to certain improvements SEDO and better optimization for our part, but I also think that the crisis has helped in certain niche markets. It could be a paradox, but some sectors, with an adverse economic situation is the urgent need to sell, so they turn to the Internet advertising to attract customers. Especially shops, banks (capturing assets), investment firms, etc., to do that advertising income and justified within their companies.

For a sample button. A few years ago I was very interested in renewable energy, especially in Photovoltaics, investing in solar parks in Extremadura and Navarra. 2-3 years ago there were huge and insurmountable waiting for this kind of investment, supported by The Renewable Energy Plan in Spain (PER) 2005-2010. Today, many of these companies, especially large, have problems in marketing and attracting investment to the crisis, the market has reversed, and there is fear of investing that money is hidden.
Curiously makes less than 1 years bought the domain renewable and parking in our domain. The evolution of the ratio of clicks I think it is very significant and shows a sectoral movement.

In December 2007, a good month for the advertising market and a more positive scenario than the current one, this was the state of our renewable domain:

As you can see a slight reversal of € 0.24, with 4 clicks, which gives us a CPC of 0.06 € (in capturing EPC).

However, the worsening economic situation has improved dramatically with the real need to attract clients via the Web by these companies, last June this is the evolution:

As you can see, a parked domain that we use and generated € 0.24 per month, now with the new economic situation and need to sell the advertiser is coming to generate up to € 15 a month, a brutal phased growth that leads to a CPC € 0.94 (from 0.06 €).

With that and being reversed through Google Adsense and SEDO as intermediaries necessary, we may conclude that perhaps advertisers are paying for the click around 2.5-3 € (very good price for Spanish words) where previously no more than 0.3-0.6 € betting margin of clicks. Months ago were test campaigns, branding, and maintenance and now, the offline use of internet more aggressively looking for potential customers and ultimately to seek sales, making them far more to advance its aggressive competition.

I think this small example can illustrate the theory that many professionals hold on to the Internet advertising holds in overall numbers, but partly in the industry is migrating from the branding and the CPM to special actions, contextual advertising, membership or email marketing to achieve a subscription or sale.

Tags: Adsense, contextual, parking domains, advertising