Market Trends Seminar

1
Market Trends Seminar

• ICANN Luxembourg
• July 2005

2
Overview

• Key Metrics for the Domain Name Industry
• Key Drivers of the Business Currently
• Trends in Registrar Behavior
• Going Forward

3
Metric Domain Name Base

• 22 Increase YOY
• 8 Increase QOQ
• .info Had the Highest Base Growth Increase YOY
  at 199

4
Industry Composition

• Com at 47
• ccTLDs in Total are 35
• Not Much Change over Past 2 Years.

5
ccTLD growth

• 27M Registrations
• 8 Increase in Base Growth YOY
• 6 Increase in Base Growth QOQ
• Top 10 ccTLDs make up 70

6
Metric New Registrations

• 6.7M New Registrations in Q1 2005
• 4 Growth QOQ
• 36 Growth YOY
• YOY ccTLD New Registrations grew by 62.5 CN by
  31 and the other gTLDs by 9.5

7
Metric Renewal Rates COM NET
74.5 Average Renewal rate
Average Renewal Rate
Stability in the Name Base

8
Metric Names Associated with Website COM NET
Names Associated with Website
Highest usage ever
Higher usage higher renewals
Source Cyveillence 2004
9
Driver PPC Impact On Domain Market

The key to remember on a 7 domain is that if it
makes more than 2 cents a day it is profitable
at the end of the year.

Adam Dicker, CEO, High Impact Sites, Inc.
10
Driver Paid Search PPC Market
Key Takeaway PPC market is driving domain name
registration growth as domain names are
registered that contain meaningful terms or
attract traffic. Registrants generate revenue by
enhancing resale value or by placing PPC
advertising on a parked page.
Source Jupiter Research as cited in Wired News
October 2004
11
Driver Broadband Penetration
12
Domain Name Market (ccTLDs and Com Net)

• Composition Shift in total com/net registration
  reliance from NA from 68 in 2002 to 61 in 2005.
  
• Asia Pac increased contribution to total com/net
  registrations from 9 - 12 in same time period.
• 76 in 2004 73 of registered ccTLDs are
  European

Blue COM NET Red ccTLD
Source Zooknic, Inc., December 2004
13
Trends in Registrar Behavior

• Participation in the PPC Market
• Bundling Packaging
• Hosting services
• Blogging
• ccTLD gTLD domain names
• International Expansion into upcoming areas by
  sellers

14
Com Net ICANN-accredited Registrar Locations
Source VeriSign internal data. November 2004
15

• Thank you!
• Sarah Langstone
• slangstone_at_verisign.com

16
Thank You
Any Questions? Sarah Langstone Slangstone_at_verisig
n.com