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Market Trends Seminar. ICANN Luxembourg July 2005. Overview. Key Metrics for the Domain Name Industry Key Drivers of the Business Currently Trends in Registrar Behavior Going Forward. Metric: Domain Name Base. 22% Increase YOY 8% Increase QOQ
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Market Trends Seminar ICANN Luxembourg July 2005
Overview • Key Metrics for the Domain Name Industry • Key Drivers of the Business Currently • Trends in Registrar Behavior • Going Forward VeriSign, Inc.
Metric: Domain Name Base • 22% Increase YOY • 8% Increase QOQ • .info Had the Highest Base Growth % Increase YOY at 199% VeriSign, Inc.
Industry Composition • Com at 47% • ccTLDs in Total are 35% • Not Much Change over Past 2 Years. VeriSign, Inc.
ccTLD growth • 27M Registrations • 8% Increase in Base Growth YOY • 6% Increase in Base Growth QOQ • Top 10 ccTLDs make up 70% VeriSign, Inc.
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% VeriSign, Inc.
1st Time Expiring Names Previously Renewed Expiring Names Metric: Renewal Rates COM NET 74.5% Average Renewal rate Average Renewal Rate Stability in the Name Base VeriSign, Inc.
Metric: Names Associated with Website COM NET Names Associated with Website Highest usage ever Higher usage = higher renewals Source: Cyveillence 2004 VeriSign, Inc.
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. VeriSign, Inc.
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 VeriSign, Inc.
Driver: Broadband Penetration VeriSign, Inc.
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 VeriSign, Inc.
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 VeriSign, Inc.
Com Net ICANN-accredited Registrar Locations Source: VeriSign internal data. November 2004 VeriSign, Inc.
Thank you! • Sarah Langstone • slangstone@verisign.com VeriSign, Inc.
Thank You Any Questions? Sarah Langstone Slangstone@verisign.com VeriSign, Inc.