Given the high prices paid in the secondary market for generic domain names, it intuitively makes sense to assume that there is a marketing benefit using category and keyword specific domain names in advertising campaigns. In a study designed to measure the effect of URLs in PPC (pay per click) text ad campaigns, there are some results which give some data to support this assumption.
User Centric, Inc. published results of a study which offer some interesting findings for generic domain owners. While the study was designed more from the point of view to help marketers make choices about types of extended URLs to use in PPC text ads to maximize results, these findings were of particular interest regarding generic domains:
"The value of an identifiable domain name in a display URL was highlighted by a test conducted for iNest Realty. Their parent company, RealEstate.com, is a much more recognizable domain name. The test was conducted to determine the impact of using the stronger brand name in the display URL of PPC ads. The test ads are shown below. The only difference between the two PPC ads is the display URL.
New Homes & Home Builders
Find new homes and home builders
1% cash back buyer rebate program.
www.iNest.comNew Homes & Home Builders
Find new homes and home builders
1% cash back buyer rebate program.
www.RealEstate.com
Utilizing RealEstate.com in the display URL resulted in a 20% greater click-thru rate for the bottom PPC ad."
Additionally another surprising statistic found was that, for PPC ads located in the upper left region of the browser, the area where for example, top sponsored links on search engine results are found, the 'gaze' time for the URL in the text ad was greater than the time spent reading ad text. The top sponsored links on the upper left of the page are the most expensive position for PPC text ads, requiring advertisers to outbid all other competitors, and for these ad positions the domain name/URL is of key interest to searchers. Only the headline had greater 'gaze' time.
Gaze time (in seconds) per visit to a Google search results page:
Headline .7 seconds
URL/Domain name .53 seconds
Ad text description .15 seconds
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