Ok so as we all know pizza.com sold for $2.6 million dollars at sedo.com today.
Nice sale, except it pales in comparision to porn.com which sold for $9.5 Million several months ago.
Seems strange doesn’t it??
You can advertise pizza on television.
Porn you can’t.
You can advertise pizza on the super bowl, porn you can’t,
According to the New York Times, Pizza Hut’s annual ad budget is $75 million dollars. Domino’s Pizza is $50 million dollars.
And did we tell you this is the annual budget.
So in five years we are talking 375 million and 250 million repectively for just for those 2 chains. What about all the other national, regional and local chains?
You know anyone in the porn business that spends 75 million dollars a year in advertising.
Me neither.
Yet the porn business gets it.
The porn business gets the value of a domain. A great domain. A brand domain.
Once again Madison Avenue doesn’t get it.
By the way you know what a 30 second ad cost in this year’s Super Bowl??
2.7 million dollars, less than the cost pizza.com, which will be able to be advertised forever
Pizza.com should have sold well into the 8 figures.
You know the old expression, “if I only knew then, what i know now”.
If only Madision Avenue knew what the porn industry knows, the value of a domain last much longer than that 30 second ad.
To quote the domain king “Not everyone who eats pizza watches porn, but everyone who watches porn eats pizza.”
btw, Wed night before Thanksgiving is Pizza’s biggest night and could earn 10x the investment back in a few hours for the right the owner
The sale of Pizza.com, especially in this economic environment, is historically significant. Before this, Madison Avenue could sit back and smuggly ignore the porn and gambling domain high water marks as the platinum spawn of a niche industry.
But not Pizza.com. This All-American word, this seven figure generic domain sale, strikes right at the heart of Madison Avenue marketing and branding.
David
Yes but the cost of the domain is less than one 30 second ad on the Superbowl
http://money.cnn.com/2008/01/25/news/superbowl_ads/index.htm
So looking at the big picture the domain sold for a ridiculously low amount
Yes, if you look at the big picture the sale of Pizza.com is miniscule compared to what the advertising world is spending. But you can’t do that. We’re the new kids on the block with our faces pressed up against the glass waiting to get into the cocktail party.
However, we’ll get there. It’s now only a matter of time and it’s going to happen one step at a time. Pizza.com is a big step in the right direction.
You can get immediate satisfaction from your screen with porn.com but with pizza.com you need to order out. Most visitors are not going to pizza.com to learn how to make pizza. The story here is pizza.com has a connection to a brick and mortar business. That’s a big connect at $2.6mil.
David…it’s a step in the right direction if an end user bought it (which I hope is so) if a “usual suspect domainer” bought it then nothing really was gained…cant wait to see who bought it.
Could you imagine, Pizza Hut, Domino’s or Papa John’s with a tv, radio campaigns bragging that the new wave of pizza delivery is through Pizza.com? IMO – this would kill!
I admit – I’ve never ordered pizza online before – but I also never looked up movie times on the internet until roughly 3-4 years ago. Ordering your pie online will be the norm within the next 5 years.
I thought this would be a 8 figure sale for sure. Curious to know who’s the buyer.
Data from the Google Keyword Metrics Tool for the search term pizza…
Max Bid: $1.71
Estimated Daily Search Volume: 816,772
Estimated Monthly Search Volume: 24,503,180
Estimated Daily Clicks: 12251.59 (This is for the top AdWords Position)
Market Value: $628506.57 (This is how much the top AdWords Position would pay for all the monthly clicks for this keyword)
AdSense Effective CPM: $51.37 (Assumes a 60% revenue share from adSense, and a 5% CTR on ad units)
Data from the Google Keyword Metrics Tool for the search term porn…
Max Bid: $0.71
Estimated Daily Search Volume: 5,300,986
Estimated Monthly Search Volume: 159,029,580
Estimated Daily Clicks: 79514.79 (This is for the top AdWords Position)
Market Value: $1693665.03 (This is how much the top AdWords Position would pay for all the monthly clicks for this keyword)
AdSense Effective CPM: $21.30 (Assumes a 60% revenue share from adSense, and a 5% CTR on ad units)
Porn.com sold for much more sice it is sex – the human population is expanding (multiplying in numbers).
The buyer of porn.com knows that very well.
Bob
Excellent analysis.
So what your saying is from a pure PPC perperctive the term porn would take 10X more on a monthly basis to buy all the adwords traffic, then the word pizza.
However to buy all the traffic for the year for the word porn your looking at 1.7 million x12 or just over 20 million.
Due to advertising restrictions, much or adult advertising goes to the net.
As we discussed in our post just the two biggest pizza chains spend 125 million a year in advertising.
Because at the end of the day, all people really care about is food and sex, two basic human needs.
You can have all the fancy theories about domain business and valuation, about tech, fancy gadgets, remote control walkway that brings you to do your front door from your car but if people aren’t eating or doing it, there will be many more wars in the near future.
People come online to watch videos , to buy food off amazon.com and to watch free porn. Period.
If one of the big pizza sellers bought it (which would be best for the domain industry), they’d be wise to forward what they’re currently using for their site (ie Dominos.com, PapaJohns.com) to; and switch over to using only; Pizza.com.
The ad/branding “experts” would no doubt scream like banshees over such a move…yet doing so would enable the domain’s owner to quickly grab nice chunks of their competition’s web traffic…forever.
Why bother typing in 1-3 or more different pizza co web addresses when you can get what you want with just one–Pizza.com?
I’ve ordered pizza many times on the Net. Doing at Pizza.com just seem more right than ordering at Dominos or Papa Johns.
Yes this is a big step. Word will get out about this.