DomainMart Releases Report: Madison Avenue & Domain Names

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 company.

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.

About DomainMart

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