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The Lowdown



Nov. 7, 2008 Post

Here's the The Lowdown from DNJournal.com! Updated daily to fill you in on the latest buzz going around the domain name industry!

Compiled by Ron Jackson
(DN Journal Editor/Publisher)
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With so much bad financial news swirling around (including reports that online advertising revenue growth is starting to slow down as the recession takes hold) we wanted to send you into the weekend with some positive information to reflect on. 

Joe Apprendi, the CEO of ad network Collective Media, is a long time veteran of the space who has been through all of the ups and downs. Few people are as well positioned as he is to put the prospects for online advertising into perspective. Joe did that in an extensive interview with Steve Smith that was posted in Smith's Behavioral Insider column today at MediaPost. You have to register for a free MediaPost subscription (absolutely no strings attached) to read the full article, "Targeting Out of a Recession", but it is well worth doing as MediaPost is a constant source of valuable insight into the online media world (which all domain owners are part of).

 

Joe Apprendi
CEO, Collective Media

At the start of the Interview, Smith asked Apprendi how the current slowdown compares to the last big downturn during the 2000 tech bust (when the dot com bubble also burst). Apprendi said, "When I was running ad sales at 24/7 in 2000, the rug was really pulled out from under us relatively quickly when the bubble burst. But there is a major difference between end of 2001 vs. 2008 going into 2009. Display media in aggregate is a core component of every marketer's strategy, including Fortune 1000 brand advertisers, not just the low-hanging fruit of direct marketers. So instead of it being the first to get cut as experimental media as it was back then, today it (online) is the core measurable media."

"In fact, we still believe that even though there will be a downturn in the ad economy, when people rebudget they are going to rebudget towards measurable media. There is a big difference from eight years ago in terms of the mindset of marketers who now have a tried and true media channel that works," Apprendi said. Apprendi went on to make many other salient points that should make you weekend a little brighter. 

Good generic domain names are 
like prime real estate. They 
represent vacant land where you 
can put up a PPC billboard or reach 
for the stars by developing a virtual skyscraper that towers over the surrounding landscape.

Yes, PPC income is way down from where it was a year ago, but overall, those connected to the online advertising market and online media in general, are positioned far better than most. This is particularly true of those who own quality generic domain names because those names have an intrinsic value that goes beyond their capacity to generate passive PPC revenue. Each one has the potential to be developed into a leading media property in its category, with a built-in flow of direct navigation traffic fueling the growth of the enterprise. That is a key reason that the domain aftermarket (other than at the ultra high end) has held steady despite the destruction we are seeing in the general economy (there is more on this topic in our latest monthly newsletter that was sent to opt-in subscribers).  

Certainly everyone feels the pain when the general 

economy suffers as much as it is suffering now, but how many people do you know in other fields that you would want to trade places with right now? 
(Posted Nov. 7, 2008) To refer others to the post above only you can use this URL:
http://www.dnjournal.com/archive/lowdown/2008/dailyposts/11-07-08.htm


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