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And here’s what Wikipedia says about Domain Parking…
Domain parking is an advertising practice used primarily by domain name registrars and internet advertising publishers to monetize type-in traffic visiting an under-developed domain name. The domain name will usually resolve to a page containing advertising listings and links. These links will be targeted to the predicted interests of the visitor and may change dynamically based on the results that visitors click on. Usually the domain owner is paid based on how many links have been visited (e.g. pay per click) and on how beneficial those visits have been. The keywords for any given domain name provide clues as to the intent of the visitor before arriving.
Another use of domain parking is to be a placeholder of an existing web site. A company might choose to use this method to redirect its website traffic to another website it owns.
Expired domains that were formerly websites are also sought after for domain parking. A domain that was used as a website and is allowed to expire will still maintain most of its prior inbound links. These types of domains usually attract their largest amount of visitor traffic initially after being claimed from the domain drop lists. As website operators and search engines begin to remove the former inbound links, the traffic to the parked domain will begin to decline.
On domains with a ‘one-click’ implementation, a click on a keyword is not necessary to generate ads. The ads are targeted based on the domain name.
Domains with ‘two-click’ implementations require a click on a keyword or a keyword search to generate ads.
Domain parking can be classified as monetized and non-monetized. In the former, ads are shown to visitors and the domain is ‘monetized’. In the latter, an “Under Construction” or a “Coming Soon” message is put up on the domain. This a single page web site that people see when they type the domain name in a web browser. This is one quick way for getting an Internet presence. Domain names can be parked before a web site is ready for launching.
There are several companies that actively cater to domain name owners and act as middlemen to serve advertisements on parking pages. The parking pages are propagated automatically on a domain owner’s web property when they either change the name servers or forward the URL.
Domaineering is the business of acquiring and monetizing Internet domain names for their use primarily as an advertising medium rather than as an investment for resale as in domaining. In essence, the domain names function as virtual Internet billboards with generic domain names being highly valued for their revenue generating potential derived from attracting Internet traffic hits. As with traditional advertising, domaineering is part art and part science. Often to be the most effective as advertising tools, the domain names and their corresponding landing pages must be engineered or optimized to produce maximum revenue which may require considerable skill and knowledge of search engine optimization ( SEO ) practices, marketing psychology as well as an understanding of the target market audience. Domaineering generally utilizes a firm offering domain parking services to provide the sponsored “feed” of a word or phrase searched for. Occasionally content is added to develop a functional mini-website. Domaineers and some of those who advertise online using keywords believe domaineering provides a useful, legal and legitimate Internet marketing service while opponents of domaineering decry the practice as increasing the ubiquitous commercialization of the world wide web. Domaineering is practiced by both large companies who may own hundreds or even thousands of domains to individual entrepreneurial minded domaineers who may only own one or a few.
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