BRISBANE, AUSTRALIA, Dec 03, 2008 (MARKET WIRE via COMTEX) -- Despite the depression in economics as a whole, the domain name aftermarket, now a multi-billion dollar industry, continued to set new records and show fresh life. In fact, according to DomainConsultant.com, the live auction held on the Gold Coast in Australia in November broke previous marks set in better financial times and environments.
With technical difficulties et al, causing a twenty plus minute delay, Aftermarket.com's live domain auction still managed to sell 81% of the inventory offered -- far eclipsing auction records in terms of percentages sold.
"Aftermarket came to us with several goals -- the most important being bidding activity and large percentage of sales," says analyst Adam Strong of DomainConsultant.com, the firm brought in to select 100 names from over 30,000 submissions. "Results show we succeeded on all fronts."
Of the hundred names offered, eighty-one sold in either the live or silent portion of the auction with an average price over $3,000. Highlighted sales included Saws.com, SkiEurope.com, iUS.com, Up.com.au and Camera.co.uk. Another auction at the conference sold CR.com and SanJuan.com for six figures.
The domain name industry has averaged roughly 30-40% in past live auctions so a jump of this nature is seen as continued and growing interest in the asset class. Recent high-level sales include kredit.de for $1.2 million; cruises.co.uk and invest.com for $1 million; SkiResorts.com and Printer.com for $800,000 apiece.
"People's options are slimming investment-wise. Consequence is we've seen a shift towards the Internet as a viable investment vehicle, even a safe harbor," adds Mike Fiol, another analyst and industry writer.
"And one of the most proven and by far easiest is domain names. You are betting on whether or not the Internet, which is truly global, is going away versus a single company or entity or industry," he says. "People who made the bet in 1998 or 2001-2002 are now our industry leaders."
Analysts such as Strong and Fiol point to the total budget of Internet advertising -- as compared to print and TV. Internet advertising still makes up only 10% of overall global ad spending -- leaving ample room for growth. "It's a fundamental shift that has only begun. The Internet is no longer an infant, but it's still only a toddler -- albeit, an angry, spoiled toddler," concludes Strong, noting projected 9% growth in the space for 2009.
Fiol thinks change will come when 'branding' meets the Internet. "You can have 15 to 30 seconds to brand on TV or five to twenty minutes on the Internet, depending on the site. Which is more cost-effective? Which is actually measurable?" says Fiol, the young analyst who is also CEO of HappyBirthday.com, among others.
"These are simple questions, with amazingly simple answers," he adds confidently, pointing again to a record-breaking day in the land down under. "I mean, how many other industries are showing record sales right now?"
Complete auction results are available at Aftermarket.com with additional information via DomainConsultant.com.
DomainConsultant.com is a 'success collective' made up of the brightest and best the domain name industry has produced. For more information, visit DomainConsultant.com.