Online advertising, sales and usage statistics show why domain names will increase in value in 2017 and beyond
The internet has forever changed the way brands interact with their potential customers. By 2020 digital advertising will surpass traditional advertising methods. As advertising dollars move to online platforms, companies will need to focus more on developing their online strategies. Advertising return on investment will be challenged as more dollars are moved into the digital advertising space. For example, look at how businesses compete for the valuable keywords on Google. The goal of every marketing campaign should be to start a direct relationship with customers because it reduces acquisition costs. Your domain name is the bridge that connect your advertising to your company information.
Major trends that will drive the price of domains higher
- Online sales will be $523B by the year 2020
- 82 percent of shoppers say they consult their phones about a purchase they’re about to make in-store.
- Millennials are the next largest demographic group driving sales and overwhelmingly use the internet. Businesses understand this and are changing their marketing strategies to cater to this demographic group.
- Digital advertising will overtake traditional advertising platforms by 2020
- Digital investments will increase as companies invest more in digital advertising
Domain names are a foundational element for online strategies.
Premium domains provide a competitive advantage and supercharge marketing campaigns because of how they connect with consumer intent and search. The psychology behind why we buy and the words that we use to communicate has not changed. The supply of premium domains that tap into the psychology of how we buy and the way we speak are finite. Businesses that acquire premium domain positions will have a tremendous advantage in their conversion and sales. Only one company can own the authority, leadership and clarity that domains like Author.com, BigData.com or HolidayCards.com communicate. Prices for quality domains will go up as businesses realize this advantage.
These 12 statistics show investments are shifting to online assets.
- Over one-fifth of Americans report going online almost constantly (pewresearch)
- In 2015, 205 million U.S. citizens were online shoppers and had browsed products, compared prices or bought merchandise online at least once. These figures are projected to reach 224 million in 2019, positioning the United States as of one the leading e-commerce markets based on online shopper penetration.
- Millennials will outsize the Baby Boom generation and will become the largest living generation very soon (statista).
- Millennials are social and almost always connected; they spend almost 8 hours a day online.
- Online Video Ad Spend Increased Nearly 30% From 2015 To 2016 (emarketer)
- On a dollar basis, US digital video ad spending is predicted to reach $28.08 billion in 2020, up from $9.90 billion in 2016. (emarketer)
- Retail Industry is set to spend a record 15 billion on digital ads this year (smartinsights).
- Over 70% Of Marketers Are Increasing Digital Marketing Budgets (econsultancy)
- Digital Advertising Revenue Jumped 20% To Nearly $60 Billion In 2015 (adage).
- Digital Ad Spend will Constitute Nearly 40% Of Total Ad Spend, Surpassing TV in 2017 (emarketer)
- Social Media Marketing Spend Will Rise To 20% Of Total Budgets American Marketing Association)
- Nearly 70% Of CXOs Predict More Digital Interaction & Focus On Customers As Individuals (IBM).
Most marketing executives have not made the full transition to digital
The tug of war between traditional advertising and digital advertising is only the beginning. As brands make the full shift to digital advertising, we expect to see their online strategies becoming deeper and more thought out. This change will drive massive investment dollars to all areas of the digital strategy including domains.
Companies that understand the seismic shift that is happening will benefit from staking their claim now. Acquiring category defining domains or short brandable domains is a foundation element to every online strategy that will pay off with high returns.
Domain names are strategic assets that appreciate in value.
Acquiring a premium domain needs to be viewed as a strategic asset, not a marketing expense. Domains appreciate in value and are regularly resold when strategies change. Unlike a marketing campaign, the return on investment of a domain acquisition lasts for the lifetime the brand holds the domain. Domains should be strategically acquired because they create a defensively and offensively competitive advantage. The global demand for domains is increasing.
However, the supply is finite making premium domains a great investment. Once a premium domain is acquired they are rarely sold again because brands realize this could give a competitor a marketing advantage. This further limits the supply and increases the price. If you have the opportunity to acquire a premium domain in your vertical, think long and hard because it could be the only chance you get.
The way we interact with domains will change in the future as the internet innovates.
The internet of things will potentially make domains even more important because in the future everything could be connected to the web. Having an active domain portfolio will have strategic advantages when these changes take place and give businesses more options to pivot with strength.
Quality domain names that are brandable, category defining and short will continue to increase in value.
The shift from traditional to digital advertising has only begun for most companies. Billions of dollars will be driven into online advertising and assets over the next ten years. As this shift takes place more focus and attention will be placed on digital strategies. Premium domain names are a foundational element of digital strategies.
The supply of quality domains is limited however the global demand is increasing. In this classic supply and demand scenario quality domains will continue to be the big winner. Working with a domain broker like Media Options opens up more possibilities for acquiring a premium domain. Here are a few premium domains that Media Options is brokering that will make great brands: DingDong.com, Aces.com, Author.com, and Heart.com. Sign up for our newsletter to be the first to know about new domains we are brokering.