ROI on Pharmaceutical Domain Names

prudencecoatInternet and Web Development

Nov 18, 2013 (3 years and 11 months ago)

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November 2004


ROI on Pharmaceutical Domain Names

ROI on Pharmaceutical Domain Names

(
Why is it worthwhile to spend a fortune on premium domain names)

November 2004

Dirk Krischenowski

Global Marketing Manager Chiron Vaccines


November 2004


ROI on Pharmaceutical Domain Names

Daily Situations
-

and Questions within Internet Marketing


You are planning to set
-
up a website
for a disease area


Someone offers you a domain name for
a five or six figures price


Your competitors are already ranked
high in search engines


You have to demonstrate ROI on your
web activities

Are $100,000
worth to spend
for disease.info?

disease
-
net.org

is much
cheaper!


November 2004


ROI on Pharmaceutical Domain Names

Learning from other Industries


November 2004


ROI on Pharmaceutical Domain Names

Unbelievable Deals during the DotCom Bubble

Compaq spent $220
million to acquire the
original shopping.com
web site


November 2004


ROI on Pharmaceutical Domain Names

What happened with spectacular

Domain Name Purchases?


November 2004


ROI on Pharmaceutical Domain Names

business.com


sold for $7.5 M in 1999

No. 1


November 2004


ROI on Pharmaceutical Domain Names

jobs.com


sold for $800.000 in 2002

No. 1


November 2004


ROI on Pharmaceutical Domain Names

wine.com


sold for $3.3 M in 1999

Today

No. 2 at Google


November 2004


ROI on Pharmaceutical Domain Names

drugs.com


sold for $823.000 in 2000

No. 1


November 2004


ROI on Pharmaceutical Domain Names

gesundheit.de


sold for $600.000 in 2001

No. 3


November 2004


ROI on Pharmaceutical Domain Names

ROI on very high Investments


What happened to the spectacular generic keyword
domain name deals from recent years?



Top search engine rankings of the domain name


Thereby to a high number of visitors


Additionally they also count a significant type
-
in traffic



The top rankings today represent a multiple of the
value, which has been originally paid by the
purchaser



November 2004


ROI on Pharmaceutical Domain Names

A short Definition


November 2004


ROI on Pharmaceutical Domain Names

Definition of ‘Generic Keyword Domain Names‘


TLD = top
-
level
-
domain (e.g. .com/.fr/.info)


Domain names = second
-
level term (e.g. diabetes)


Generic = no brands or artificial names


Keyword = term which is frequently searched



Example:
www.diabetes.com


November 2004


ROI on Pharmaceutical Domain Names

View on Pharmaceutical Market


November 2004


ROI on Pharmaceutical Domain Names

Top 10 Companies already secured some Assets

Johnson & Johnson

Novartis

AstraZeneca

GSK

Pfizer

hepatitis.com

cholesterol.com

cholesterol.biz

cholesterol.fr

obesity.com

dementia.com

diabetes.biz

breastcancer.biz

adhd.biz

atopicdermatitis.info

atopicdermatitis.biz

colitis.biz

colitis.ca

dialysis.ca

eczema.biz

influenza.biz




aging.ca

alzheimers.biz

asthma.biz

atopic
-
dermatitis.org

atopic
-
dermatitis.info

atopic
-
dermatitis.biz

breastcancer.ca

calcium.ca

dementia.ca

glaucoma.biz

healthcare.biz

adhd.info

glaucoma.biz

reizdarm.com

schizophrenie.biz

transplantation.biz





acidreflux.com

acidreflux.biz

headache.ca

headaches.ca

cholsterol.com.au

cholesterin.info

heartburn.com.au

hypertension.co.au

schlaganfall.de

thrombose.de

lungenkrebs.com

lungenkrebis.info

lungenkrebs.de

...



asthma.com

diabetes.com

depression.com

allergies.com

heartburn.com

migraine.com.au

vaccine.ca

vaccines.ca

vaccines.co.uk

vaccine.co.au

osteoporosis.com

impfen.net

impfen.org

anxiety.ca

zoster.de

...

artritis.com

diabetes.info

copd.com.au

cough.biz

migraine.biz


migraene.net


migraene.org

cholesterin.de

cholesterin.net

cholesterin.org

impotenz.de

artritis.com.es

sida.com.es

erectile
-
dysfunction.co.uk

...




November 2004


ROI on Pharmaceutical Domain Names

GSK owns some of the most valuabe Domain Names ...

No. 2


November 2004


ROI on Pharmaceutical Domain Names

... and occupies the top Search Engine Rankings!

No. 1


November 2004


ROI on Pharmaceutical Domain Names

Generic Keyword Domain Names are

also successful in Germany ...

No. 2


November 2004


ROI on Pharmaceutical Domain Names

... in Sweden ... in other Countries ...

No. 3


November 2004


ROI on Pharmaceutical Domain Names

... and at major Search Engines (top 20 Results)

diabetes.org

diabetes.ca

diabetes.org.uk

diabetes.com

diabetes.org

diabetes.ca

diabetes.org.uk

diabetes.com


diabetes.org

diabetes.de

diabetes.com

diabetes.org.uk

diabetes.ca

diabetes.org

diabetes.com

diabetes.ca

diabetes.org.uk



Generic Keyword Domain Names are
ranked top at all major search engines

Note: diabetes.net/.org are no active websites, diabetes.info belongs to Pfizer/Netherlands


November 2004


ROI on Pharmaceutical Domain Names

Generic Keyword Domain Names

A long list of diseases and conditions for which generic keyword domain
name gained top search engine positions:


acidreflux

acne

adhd

aging

aids

allergy

alzheimer

anxiety

apnea

arthritis

asthma

atopic
-
dermatitis

backpain

bloodpressure

breastcancer

bronchitis

cancer

cellulitis

colitis

coloncancer

copd

cough

cystic
-
fibrosis

dementia

depression

dermatitis

diabetes

dialysis

diarrhea

diet

eczema

endometriosis

epilepsy

erectile
-
dysfunction

fibromyalgia

flu

glaucoma

gout

hairloss

headache

heart

heartattack

heartburn

heartfailure

hepatitis

herpes

hiv

hormones

hypertension

ibs

impotence

infertility

influenza

insomnia

leukemia

lungcancer

lupus

measles

menopause

migraine

multiple
-
sclerosis

neurosis

obesity

osteoporosis

pain

parkinson

phobia

pregnancy

prostatecancer

psoriasis

rabies

rheumatoid
-
arthritis

schizophrenia

sinusitis

skincancer

smoking

sniff

stroke

therapy

thyroid

tinnitus

vaccine

vitamin

weightloss


November 2004


ROI on Pharmaceutical Domain Names

Why are

Generic Keyword Domain Names

so valuable?


November 2004


ROI on Pharmaceutical Domain Names

Search Engines love them because ...


there’s only a limited number of diabetes.xyz available (10
Generic TLDs like .com and 250 Country
-
Code TLDs like
.ca/.de/.co.uk)


someone who owns one of the TLDs is likely to spend money
for good content and marketing


they exactly reflect the keyword a user is searching for


due to their “easy to remember” character, keyword domain
names are likely to be mentioned and listed as links on other
websites. This enhances the link popularity (links from other
websites recommending your website)


November 2004


ROI on Pharmaceutical Domain Names

The Mechanisms behind Keyword Domain Names

Domain name

keyword.xy

Type
-
in of

URL by user

Easy to

remember from

advertising

Seach
engine


criterion

High position in

search engines

+ valuable

content

Likelihood to

be linked

(link popularity)


November 2004


ROI on Pharmaceutical Domain Names

General Advantages I

Easy to communicate & understand


ideal for cross
-
media and integrated direct
-
to
-
consumer (DTC) and
awareness campaigns


shortest possible description for the topic or disease


exactly stands for what it means and for what it is perceived by
target audiences


Remarkable & brand
-
like communication


easy to remember and pronounceable


allows a brand
-
like communication strategy (domain becomes brand)


International and worldwide uniqueness


national and international audience


can be used worldwide (e.g. for physicians)


November 2004


ROI on Pharmaceutical Domain Names

General Advantages II

Reliable


preferred as reliable source for information by users


Competitive advantage


hardly to catch
-
up and beat advantage (only one diabetes.com!)


possibility to dominate a playing field


relative low marketing investments


Everlasting & durable


very likely to be permanent in search engines even when not
promoted


ideal for the long life cycle of pharmaceutical products


November 2004


ROI on Pharmaceutical Domain Names

Best Practice Examples


November 2004


ROI on Pharmaceutical Domain Names

Good Pharmaceutical Marketing Practice


Keyword

-

Generic website “
www.heartburn.com

-

Catches all the
URL type
-
ins + catches a lot of users from search engines because of
the keyword term and its likelihood to be ranked in top search engine
positions



Slogan

-

Advertising slogan website “
www.purple
-
pill.com

-

Catches
users which remember the slogan from a DTC advertising



Brand

-

Branded website “
www.nexium.com

-

Catches users which
remember the brand from a DTC advertising


November 2004


ROI on Pharmaceutical Domain Names

Good Pharmaceutical Marketing Practice


Phrase

-

Some generic keyword phrases websites like

www.acidrefluxdisease.com



they catch users with related
conditions and those who name the disease in a different way



Misspelling

-

Wrong spellings of a brand name or disease are more
frequent than someone may think. “
www.nexum.com
”, “
www.heart
-
burn.com
”, or “
www.purpelpill.com
” are domain names to be
registered as well



November 2004


ROI on Pharmaceutical Domain Names

Calculation of ROI

on Domain Names


November 2004


ROI on Pharmaceutical Domain Names

Calculating ROI with Google AdWords

Search results

for ‘diabetes‘

Click on keyword ad


2,200 x per day

(803,000 per year)


November 2004


ROI on Pharmaceutical Domain Names

Reverse Calculation of Traffic

Google searches

for ‘diabetes‘

Search results

for ‘diabetes‘

110,000 per day

3,300,000 per month

40.1 million per year*

* Google counts for ~50% of worldwide search engine requests


Requests

110,000

per day

~2% conversion rate

Clicks

2,200

per day

Click to

Sponsor Website


November 2004


ROI on Pharmaceutical Domain Names

Diabetes is Top, but Osteoporosis is not less interesting










*Results from google.com, English language, worldwide, Google counts for about ~50% of


all search request worldwide

Keyword


Search requests
per day*

Search requests
per month*

Search requests
per year*

drugs

120,000

3,600,000

43,800,000

diabetes

110,000

3,300,000


40,150,000

asthma

31,000

930,000

11,315.000

leukemia

22,000

660,000

8,030,000

osteoporosis

12,000

360,000

4,380,000

"rheumatoid arthritis"

6,800

204,000

2,482,000


November 2004


ROI on Pharmaceutical Domain Names

Potential Contacts

80 million search requests per year for ‚diabetes‘



All of them recognise the top search results



And there‘s a very high likelihood that a top ranked
keyword.com/net/info/org/... is clicked by the user



November 2004


ROI on Pharmaceutical Domain Names

Simple ROI Calculation Example

Website investment ‘diabetes.us‘



Domain name $200,000 once


Content $100,000 annual


Webmarketing $100,000 annual



Sum $400,000 first year

Gained by top ranked domain



80 million potential contacts


Some million visitors a year on your
website

How much is a contact worth to you?


November 2004


ROI on Pharmaceutical Domain Names

Chiron Vaccines in Italy
-

Example


November 2004


ROI on Pharmaceutical Domain Names

Awareness of Meningitis in Italy

Starting point



Meningitis vaccination has to be paid privately in Italy



Limited number of meningitis websites



High market share of Chiron vaccine


November 2004


ROI on Pharmaceutical Domain Names

Actions taken


Buy in of meningite.it



Use of meningite.it in a cross
-
media awareness campaign


November 2004


ROI on Pharmaceutical Domain Names

Meningite.it at Google (after campaign)

~10.000 search requests monthly for ‘meningite‘ in Italy

No. 2

At search results

Keyword
-
Ad


November 2004


ROI on Pharmaceutical Domain Names

Domain Name and Rankings rule the Traffic

Visits from ...

Requests

Click rate

Visits

Requests at Google

for ‘meningite‘

10,000

10% (search result)

~1,000

5% (keyword ad)

500

Request other
search engines

10,000

10% (search result)

~1,000

Type
-
in Domain

www.meningite.it

25%

~1,000

External links


~500

Total monthly

~4,000


November 2004


ROI on Pharmaceutical Domain Names

Lessons learned


A generic keyword domain name is often an
expensive investment but offers multiple
communicational advantages when addressing
customers online



A generic keyword domain name can increase the
ROI of an disease awareness campaign
dramatically


High search engine rankings


Top even without cross
-
media


November 2004


ROI on Pharmaceutical Domain Names

Resources

www.sedo.com

www.dnjournal.com/domainsales.com

www.domainspiegel.de

www.greatdomains.com

www.afternic.com

www.name5.net

www.multireg.com/article494.html

www.submerged
-
ideas.com/valuation/topdomainsales.htm

www.ohlmer.de/domainreport.htm

www.pool.com


November 2004


ROI on Pharmaceutical Domain Names

Pricing


November 2004


ROI on Pharmaceutical Domain Names

... some more Prices ...


November 2004


ROI on Pharmaceutical Domain Names

… and the Story continues!


November 2004


ROI on Pharmaceutical Domain Names

Factors influencing the Price of Domain Names

A generic keyword domain name is valuable when it …



exactly represents for what it stands for


reflects one of the top therapeutic areas/classes (billion $ sales)


can be used internationally


is short, clear and easy to remember


represents an expensive treatment area or chronic disease


reflects a theme attractive to media or is a taboo/sex theme


is an often searched keyword in search engines


is already mentioned as term in a lot of other domain names


is used as common gTLDs (.com) or ccTLDs (.ca)


already collects a lot of traffic by type
-
ins or as website


November 2004


ROI on Pharmaceutical Domain Names

Domain Name Values


The high End

Domain Name Examples

Estimated Value

Why?

drugs.com
-

health.com
pharmacy.com

above $5M


1st class general generic term

International accepted + worldwide unique .com

Short, clear and easy to remember

Worldwide billion dollar sales

One of the
top 10 medicine

search terms ww

drugs.net
-

medizin.de
sante.fr

$1M to $5M

not .com!

diabetes.com
-

aids.com
cancer.com
-

diet.com

$500,000 to $ 1M

One of the
top 10 disease

search terms

diabetes.info
-

a
sthma.co.uk

asma.it
-

gesundheit.net
migraine.com
-

asthma.info

$100,000 to
$500,000

1
st

to 2
nd

class

generic disease term

International and/or national accepted

One of the
top 50 disease

search terms

Chronic disease, high customer lifetime value

diabetes.biz
-

allergy.info

epilepsy.com
-

acne.info
contraception.com

$50,000 to
$100,000

One of the
top 100 disease

search terms


atopic
-
dermatitis.com

endometriosis.info
-

breast
-
cancer.com
-

diabete.org

$10,000 to $50,000

1
st

to 3
rd

class generic disease term

One of the
top 200 disease

search terms


Source: Sedo.com, DNJournal.com, Domainspiegel.de and various press releases


November 2004


ROI on Pharmaceutical Domain Names

Sooner or later all top Domain Names are sold

Generic

keyword

domain

names

have

shown

a

tremendous

impact

on

search

engine

rankings

and

the

perception

within

pharmaceutical

target

groups


For

companies

owning

top

generic

keyword

domain

names

they

play

a

k
ey

role

in

pharmaceutical

marketing

efforts

to

reach

customers/consumer

online



The upcoming years will show an ongoing trend towards
the use of these domain names


Even if a domain name seems to be expensive today,
sooner or later a new company will appear and buy it for
a new drug to launch


November 2004


ROI on Pharmaceutical Domain Names

Backup


November 2004


ROI on Pharmaceutical Domain Names

Owner Data available for top 200 Terms