Frontier India Technology

Written on October 7, 2007 – 3:05 am | by P Chacko Joseph |

Analyst Says $8 Billion Online Advertising Network Will Grow 15% and Domain Channel Advertising by 37% in 2007.

PEMBROKE PINES, Fla., Oct. 5 /PRNewswire/ — T.R.A.F.F.I.C, the domain industry’s premier conference, today announced that Michael Gilmour, a respected industry analyst, projects that the domain name and Internet traffic industry will grow dramatically in 2007. Publicly available corporate reports state that Google and Yahoo!’s total revenue in 2006 from their ad-network channel was $7.88 billion, including $800 million from domain parking. Thus, domain parking represents 10.2% of the companies’ total ad-network channel, or 4.7% of Google and Yahoo!’s aggregate revenues. Gilmour, who will present at T.R.A.F.F.I.C.’s show next week,projects that online advertising spending will increase by 15.1% for 2007 while domain channel advertising will grow 37.5%.

Gilmour arrived at his figures by extrapolating to four quarters the Q1 2007 Internet advertising revenues of $4.864 billion reported by the Interactive Advertising Bureau (IAB) and Price waterhouse Coopers LLP (PwC), which comes to an estimated $19.42 billion annually, then dividing it by the total revenues they tallied for 2006 of $16.879 billion. His estimate
that the domain’s channel will grow by 37.5% in 2007 is predicated on figures published by Jordan Rohan of RBC Capital Markets. The domain space accounted for $800 million in revenue in 2006, according to Rohan, and he projected it will reach $1.1. billion this year, an increase of 37.5%. These figures represent the United States market alone.

“With Google and Yahoo!’s advertising revenues continuing to grow dramatically in the coming year, the domain and Internet traffic industry will benefit accordingly,” states Gilmour, former Vice-Chairman of the Australian Internet Industry Association and a director in the organization for the past six years. In his 20 years in the Internet industry, Gilmour
has contributed to the formation of policies related to Internet privacy,cyber-crime and copyright issues, and chaired a committee to establish online advertising standards.

“This analysis underscores that domains and Internet traffic will continue to be highly lucrative for some time for those who understand them,” says Rick Schwartz, cofounder of T.R.A.F.F.I.C. and WADND. “It’s imperative for marketers, bankers, investors and others to attend T.R.A.F.F.I.C. in order to better grasp the importance of targeted Internet traffic to the success of those they represent.”

Along with Steve Forbes, CEO of Forbes and Editor-in-Chief of Forbes Magazine, Gilmour will speak at T.R.A.F.F.I.C. next week, October 9-13 at the Westin Diplomat hotel in Hollywood, Florida. Presented by the World Association of Domain Name Developers, Inc. (WADND), the event brings together top domain owners, search engine companies, leading registrars, pay-per-click aggregators, sponsors, Wall Street investors, the financial and advertising communities as well as analysts and experts on targeted Internet traffic for stimulating discussions of strategies, best practices, trends and networking. Nearly 800 businesspeople attended the recent, highly successful T.R.A.F.F.I.C. New York City show in June. T.R.A.F.F.I.C. conferences are held at three different locations annually.

In addition to informative presentations from domain channel and financial experts on Internet traffic, brand value, domain acquisition, portfolio management, revenue options, development, analytics, risk mitigation, security valuation, sales and more, the primary focus of T.R.A.F.F.I.C. East 2007 will be verticals. These key verticals, for which domain owners host substantial traffic, include, travel, real estate, gaming, financial — any business from Main St. to Wall Street.

The climax of every T.R.A.F.F.I.C. conference is the largest live domain auction in the world, hosted by Moniker.com and its CEO, Monte Cahn. Over $12 million in domain names changed hands in only 3.5 hours at T.R.A.F.F.I.C. East, including one domain that went for $3 million and another for $1.8 million. In all, more than half of all the domains offered were sold. For the third straight show TrafficZ.com is our overall Diamond Sponsor. Other major sponsors include Fabulous.com, Klickers, Moniker.com, Sedo, NameMedia, Casale Media, LeaseThis.com, EuroDNS and many others.