October 9, 2006; 05:39 AM
DomainMart, a leading provider of quantitative and analytical ecommerce
services, released today a report pointing out the empirical
shortcomings of current empirical studies of direct navigation.
The report examines two major empirical studies on direct navigation.
The first, by WebSideStory, finds that sales-conversion rates when a
visitor arrives at a site through direct navigation are higher than
other forms of Internet navigation. The second considers only the
relationship between direct navigation and its impact on domain name
prices and parking revenue.
Direct navigation has tremendous marketing implications and is of
paramount interest to buyers and sellers of Internet properties (domain
names and websites). Thus, it is imperative that the sources and
magnitude of additional value creation are investigated thoroughly.
The WebSideStory study classifies visitors into three levels, and
estimates the conversion rates for each level and across various
product groups. However, according to DomainMart, the study has a
number of shortcomings with regard to visitor classification modeling,
estimation techniques, and interpretations of results.
The DomainMart empirical study suggests that direct navigation does not
add value to a parked domain name. The lack of significance of direct
navigation can be attributed to statistical estimation issues, as noted
in the study, and that publicly available domain name sale prices do
not reflect the full benefits of direct navigation, i.e., sellers, and
possibly buyers, on average, do not fully understand the value of
“Future empirical studies must address these issues to determine the
magnitude of value creation through direct navigation,” says Alex
Tajirian, DomainMart CEO.
DomainMart is an industry leader in providing ecommerce products and
consulting services, including appraisal, escrow, private investment
management funds, protection, valuation, and parking traffic
monetization management since 1996.
For more information, please visit http://www.domainmart.com/news/
Tom Saitori, Marketing Specialist, DomainMart, Tel: +1 (415) 905-4234