Alejandro Suarez Sanchez-Ocana. TIME-sector employer since 1998, CEO of Group Publispain and the network of blogs Entertainment Networks SL, President of Inversora Foley, director and Founding Partner of Yes.fm, adviser and investor in several companies for innovation, new technologies and the Internet.
The click is the king of advertising since the advent of systems like Adsense contextual advertising. However, in graphic advertising has a very different life, we are tired of seeing campaigns brading graphically and very effective visual click with ratios of less than 1%-0.x.
Advertisers and agencies over the years have gone to seek encouragement and the click of a variety of ways, but there are branding campaigns that should not and can not be measured by the ratio of click thru.
Many carriers, including mine, at any given time in recent years have chosen to avoid or stop CPC campaigns except Adsense.
The reason is obvious, Adsense is contextual advertising, it works and is well segmented. The content is relevant in most cases, and the ratio of click brings the user who is interested in CLICK usually "see behind" the ad. The ratios are positive for advertiser support.
The abuse of graphical advertising on the basis of CPC years ago I did not authorize the sale in our media campaigns CPC, I prefer if there is not even advertising autopromos launch of our websites and services. The reason is the abuse of advertisers (sometimes in convenience with agencies) to deliberately make campaigns brading of which we all know that there will be no click and launch even millions of impressions on your sites at prices of laughter. Over the past 10 years has been notorious cases of banks (especially at the birth of the Internet banking) and I remember a particularly painful for my Yahoo! Music a couple of years ago, in which an August vacation that was launched a brazen campaign brading camouflaged CPC me and millions of prints colaron 8-9 that seemed to say "look at me, but I do not click! "A CPC with what I think they should not bill for it or 200 Euros, so the" colaron "dozens of media. That summer, he and at least 3-4 years, we ban advertising campaigns graphical CPC.
But what a click is worth? That is tremendously variable. I imagine that if you sell cars with a high profit margin, the click of a user interested in that vehicle is high. By that logic very niche areas or large business sectors (tourism, economy, engine) per click prices are high. This is an example of today, nearly 5 Euros for a click on "hotels" and the commission discounting Sedó. Ie click on that should have been paid 6-8 Euros (of commissions Adsense, Sedo) before coming to us. On the opposite side of the clicks you can find everything from token amounts as 0.01 as thematic and Ip.
But for me the most useful to observe the actual clicks is to be able to study, analyze and measure the temperature of niches and segments as competition, price and quantity of advertisers.
More or less since December, and much to my regret, because we have a very broad portfolio I see that the market for domain names is clean, relaxing and self-regulating as the overall economic situation cools.
Does that mean that the domains will no longer be a good investment? I think not, if I understand what he means is that an investment will be much more selective.
We have approximately 1300 domains, many of them highly selected. Com,. Net,. Info or. Is 1 in the only word that "we have to do something." But also, over the years have been buying domains of 2 without being generic words. Com, or 1 single word but without much real meaning or not Premium domains in other TLDs such as. Tv. Mobi or. Pros and growing I think that some of them have not won the renovation.
Generally do not sell domains, they are like a collection of stickers on it from time to time sell some to invest in others. This month we offer auctioned after 2 domains, "dominio.tv" and "anuncios.pro", the latter currently on auction at Sedo here following a bid of $ 1500US.
Why do we have sold these domains, if the bids have not been so good from our point of view?. The explanation is varied, "dominio.tv" has a renovation cost of $ 500 and had no plans to do anything with, ie has cost us in the last 2 years $ 1000, there was no point in keeping it stopped. "Anuncios.pro" Nor had nothing planned, especially because even if I throw something sorted soon (I love the industry) for that, I prefer another domain that we have reserved "anuncio.net"
Investment in domains has changed a lot in this 2008, the routine of backorders in Spain in recent years, rarely appear. I do not remember when was the last time I sounded the alarm because there was a lack of motive for the closing minutes of an auction that interested me, I think that really we have been in the sector in recent years, we already have too many and just looking opportunities to improve the quality of our portfolio, and those opportunities have migrated to treatment through private or platforms for sale as Afternic or Sedo, but rarely at auction.
One of those rare cases auction is taking place right now. NameJet auction at the moment the domain "vida.com" in an auction Private? in which there are 209 bidders. 2 days left for the sale of the domain, which certainly has the look of it away in an American investor, and bids are already at $ 8100. The domain magnificent and I think there are things that could be done with ... but unfortunately not in our plans to make an immediate, so I do not think it makes sense to buy it eventually. Even so, we are discussing internally so intense.
In recent months advertising on the Internet is evolving so disparate and this directly affects sectors such as insurance or parking domains.
I've never believed in the parking domains, in fact I believe as a "necessary evil" and I always have seemed not provide any value "bread for today and hunger for tomorrow." I am also particularly critical of the negative systems that are parking domains for search engine optimization, then if you want to develop or develop a domain will have to spend a filter for Google posicionarte for months and months on many occasions.
Even so, 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 very improved, in fact I am surprised that a company like Sedo is not developed and what should be 2.0 parking systems, more proactive, dynamic, multimedia, self-contained by the user and providing something of value, not simply be 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 in the first place is because of certain improvements and better optimization crowd on our side, but I also believe that the crisis has helped in certain niche markets. It could be a paradox, but certain sectors, with an adverse economic situation is the urgent need to sell, so turn in advertising on the Internet to attract customers. Especially shops, banks (to attract assets), investment firms, etc., they have to do that advertising and rent are justified within their companies.
To sample a button. Some years ago I was interested much in renewable energies, especially in Photovoltaics, investing in solar parks in Extremadura and Navarra. 2-3 years ago there were huge and insurmountable waiting lists for this kind of investment, backed by The Renewable Energy Plan in Spain (PER) 2005-2010. Today, many of these companies, especially large, have problems in marketing and attracting investment with the crisis, the market has been reversed, and there is fear of investing that money is hidden.
Curiously does something less than 1 year bought the domain renovables.es and what we have in our parking domains. The evolution of the ratios of clicks I think it is very significant and illustrates a movement sector.
In December 2007, a good month for the advertising market, and with a more positive scenario than the current, this was the state of our domain renovables.es:
As you can see a slight reversal of € 0.24, with 4 clicks, which gives us a CPC of 0.06 € (in the capture EPC).
However, the deteriorating economic situation has improved dramatically before the real need to attract customers via the Web by these companies, last June this is the evolution:
As you can see, a domain parked and idle we 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 reversal and are using Google Adsense and Sedo, as necessary intermediaries, we may conclude that perhaps advertisers are paying for the click around 2,5-3 € (very good price for Spanish words) if not previously gambled more than € 0.3-0.6 margin by clickthrough. For months they had test campaigns, branding, and maintenance and now, the situation offline use the Internet in a more aggressive looking for potential customers and ultimately looking for sales, making them far more aggressive in advancing its competition.
I believe that this small example can illustrate the theory that many industry professionals remain around that Internet advertising holds in overall numbers, but partly within the industry is migrating from the branding and the CPM for special actions, contextual advertising, affiliation or email marketing to achieve a subscription or purchase.
Alejandro Suarez's blog.