PEMBROKE PINES, Florida, Oct. 5 – PRNewswire – T.R.A.F.F.I.C, the domain industry’s premier conference, today announced that Michael Gilmour, a respected industry analyst, projects that the domain name and Internet traffic industry will grow dramatically in 2007.
Publicly available corporate reports state that Google and Yahoo!’s total revenue in 2006 from
their ad-network channel was $7.88 billion, including $800 million from domain parking. Thus, domain parking represents 10.2% of the companies’ total ad-network channel, or 4.7% of Google and Yahoo!’s aggregate revenues.
Gilmour, who presented at T.R.A.F.F.I.C.’s show, projects that online advertising spending will increase by 15.1% for 2007 while domain channel advertising will grow 37.5%. Gilmour arrived at his figures by extrapolating to four quarters the Q1 2007 Internet advertising revenues of $4.864 billion reported by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC), which comes to an estimated $19.42 billion annually, then dividing it by
the total revenues they tallied for 2006 of $16.879 billion. His estimate that the domain’s channel will grow by 37.5% in 2007 is predicated on figures published by Jordan Rohan of RBC Capital Markets. The domain space accounted for $800 million in revenue in 2006, according to Rohan, and he projected it will reach $1.1. billion this year, an increase of 37.5%.
These figures represent the United States market alone. For a copy of Gilmour’s full analysis send an email to mgilmour@whizzbangsblog.com.
“With Google and Yahoo!’s advertising revenues continuing to grow dramatically in the coming year, the domain and Internet traffic industry will benefit accordingly,” states Gilmour, former Vice-Chairman of the Australian Internet Industry Association and a director in the organization for the past six years. In his 20 years in the Internet industry, Gilmour has contributed to the formation of policies related to Internet privacy, cyber-crime and copyright issues, and chaired a committee to establish online advertising standards. Based in Melbourne, Australia, he frequently
writes about financial and other issues concerning the domain and Internet traffic industry at his blog, Whizzbang’sblog (http://whizzbangsblog.com).
“This analysis underscores that domains and Internet traffic will continue to be highly lucrative for some time for those who understand them,” says Rick Schwartz, cofounder of T.R.A.F.F.I.C. and WADND. “It’s imperative for marketers, bankers, investors and others to attend T.R.A.F.F.I.C. in order to better grasp the importance of targeted Internet
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