February 5, 2007; 06:45 AM
DomainMart, a leading provider of quantitative and analytical domain
name services, released today a report pointing out dubious claims
about the marketing benefits of direct navigation domain names,
highlights issues that Madison Avenue needs to contend with, and
outlines flaws and remedies for the domain name industry.
"To understand the value contribution of direct navigation to a brand
name, one needs to first analyze two components: the sources of value
creation and the value of these sources to a company," says Alex
Tajirian, DomainMart CEO.
Tajirian points out that methodologies for valuing assets are well
established in the finance and statistics literature and have been
successfully tailored to the domain name industry. Thus, the report
only addresses the source of value creation of direct navigation to a
The study concludes that Madison Avenue needs to understand the source
of value, namely, the congruency of site content with user intent, and
needs to be convinced that the domain name industry has been providing
rigorous analytical models and robust valuation techniques. With such
an understanding and conviction, they will be better equipped to
evaluate the alternatives for capturing the unique visitors through
purchase of such domain names, advertise on such domain names, lease
them, or co-develop.
The study also points out that the domain name industry needs to also
understand the sources of value creation to Madison Avenue, to tackle
Madison Avenue's concerns, and to facilitate a more efficient
information sharing mechanism.
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/Madison_Avenue_Domain_Names.htm
or contact: Tom Saitori, Marketing Specialist, DomainMart, Tel: +1 (415) 905-4234