Post on 05-Jan-2016
description
1VeriSign Confidential & Proprietary
Market Trends Seminar
ICANN Luxembourg
July 2005
VeriSign, Inc.VeriSign Confidential & Proprietary
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Overview
• Key Metrics for the Domain Name Industry
• Key Drivers of the Business Currently
• Trends in Registrar Behavior
• Going Forward
VeriSign, Inc.VeriSign Confidential & Proprietary
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Metric: Domain Name Base
• 22% Increase
YOY
• 8% Increase
QOQ
• .info Had the Highest
Base Growth % Increase YOY at 199%
VeriSign, Inc.VeriSign Confidential & Proprietary
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Industry Composition
• Com at 47%
• ccTLDs in Total are 35%
• Not Much
Change over Past 2
Years.
VeriSign, Inc.VeriSign Confidential & Proprietary
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ccTLD growth
• 27M Registrations
• 8% Increase in Base
Growth YOY
• 6% Increase in Base
Growth QOQ
• Top 10 ccTLDs make
up 70%
VeriSign, Inc.VeriSign Confidential & Proprietary
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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.VeriSign Confidential & Proprietary
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Metric: Renewal Rates COM NET
74%76% 77% 78% 77%
79% 80%83%
80%
55%
60% 60% 61% 62% 62%64%
68%
50%
40%
60%
80%
100%
Q1 03 Q2 03 Q3 03 Q4 03 Q1 04 Q2 04 Q3 04 Q4 04 Q1 05
1st Time Expiring Names
Average Renewal Rate
Previously Renewed Expiring Names
Stability in the Name Base
74.5% Average Renewal rate
VeriSign, Inc.VeriSign Confidential & Proprietary
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75.0%
55.0%
76.0%
0%
20%
40%
60%
80%
100%
2002 2003 2004
Metric: Names Associated with Website COM NET
Source: Cyveillence 2004
Highest usage ever
Names Associated with Website
Higher usage = higher renewals
VeriSign, Inc.VeriSign Confidential & Proprietary
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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.VeriSign Confidential & Proprietary
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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.
Driver: Paid Search – PPC Market
Source: Jupiter Research as cited in Wired News October 2004
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Driver: Broadband Penetration
VeriSign, Inc.VeriSign Confidential & Proprietary
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Domain Name Market (ccTLDs and Com Net)
Blue = COM NET %Red = ccTLD %
Source: Zooknic, Inc., December 2004
•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
VeriSign, Inc.VeriSign Confidential & Proprietary
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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
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Com Net ICANN-accredited Registrar Locations
Source: VeriSign internal data. November 2004
VeriSign, Inc.VeriSign Confidential & Proprietary
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Thank you!
Sarah Langstone
slangstone@verisign.com
VeriSign, Inc.VeriSign Confidential & Proprietary
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Thank You
Any Questions?
Sarah Langstone
Slangstone@verisign.com