CPC up & RPC down, Domain values UP?

I read a very interesting article today about online advertising, sent out by newsletter from  MediaPost.com.

It was funny to me that CPC to advertisers is dramatically rising and revenue per click to publishers and domain investors is dropping dramatically????  What gives?

In my eyes, that means the value of those exact match keyword domains is going to increase dramatically.  As advertisers become more aware of the importance of the domain name in search engine rankings, the discrepancy in what companies are willing to pay in paid search ranking versus what most will pay for a domain name, should tighten up.

If you are willing to pay $5,000 per month to Google Adsense and just having the keyword domain name will have nearly the same effect (if not more) in your search engine ranking, then wouldn’t it stand to reason that the value of that domain name is a multiple of the monthly expense to Google Adsense?  (Maybe 24 months would be reasonable?   Or maybe it should be 60 months, since that is the life of a domain given by the IRS?).

Either way, I believe domain values are on the rise.  Domain names are an essential element of Search Engine Optimization and that’s all there is to it.  As the fight for top spot heats up, so will the market for domain names (exact keyword match domains).

My thoughts for today…