by Patrick Q Toys’R’Us just bought Toys.com for $5.1 million. And it was a genius domain name buy, too. Here’s why.
Well, look at the keyword ‘toys’. Toys.com ranks right up there in position 4. That gets you about 6% of visitors, guessing from memory of the AOL leaked data on clickthrough rates for top spots?
Adwords indicates 24,900,000 monthly searches for toys. Multiply by 6% and then by 12 months.
The value of ranking fourth on the keyword toys is 17 928 000 annual visitors.
But wait! Some of those visits are international, where Toys.com probably won’t rank, right? Fair enough. Let’s compare numbers with AdWord’s daily clickthrough estimator. On Toys without geographic targeting, you’d get from 33K to 41K clicks a day. On Toys set to US geotargeting, you get 20K to 25K. So conservatively you still have 1/2 to 2/3 of the traffic being American.
OK, fine! The value of ranking fourth on the keyword toys is only 9 000 000 annual visitors.
The traffic is worth about $1/click to ad publishers, and likely more in earnings per click to folks like Toys’R’Us, otherwise neither they nor their competitors would buy the ad inventory!
But that’s still not all for Toys.com – that’s a generic keyword domain, notice. So they’ve got type-in traffic (probably another few hundred a day, say 300 to be conservative – e.g. another 100 000 visitors annually). Plus there are people Googling Toys.com for another few hundred thousand in annual visitors.
And of course, I’m not addressing the random mid-tail/longtail traffic a domain name like that will pick up with even moderate SEO.
If you’re Toys’R’US CMO, give your domaining team a pat on the back and send them to a sunny beach for a few weeks. Assuming you maintain the search rankings and don’t squander them, that team just made you a pile of money.
UPDATE: That assumption was faulty. Domain Name Wire reports that the rankings are gone. D’Oh!
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