2015-10-30

In running a business, large or small, one quickly becomes very aware of the benefits of advertising as well as its high cost. There are many advertising mediums to choose from, including television, print, radio, outdoor advertising, pay-per-click and more.

National TV advertising requires very deep pockets. The cost of creating and producing each commercial can easily reach seven-figures and each 30 second ad can run in the six-figures or more. While television advertising can be a very effective medium, it requires large, continuing expenditures. Generally these ads do not have a very long shelf life and are only driving business while they are running.

Print advertising, including newspapers and magazines also require large capital expenditures, on a continuing basis. Creative costs can reach the six-figures, as could each print ad. Once again, large, continuing expenditures are required for maximum effectiveness.

Radio advertising can require a continuing expenditure of hundreds or thousands of dollars per week, depending on the size of the market. Radio is not visual, and now, more than ever, it takes strong visuals to capture new customers. Once again, radio requires continuing expenditures to maximize effectiveness.

Outdoor advertising, such as billboards, often require a continuing monthly expenditure in the five-figures to six-figures.

Pay-Per-Click advertising requires a large continuing expenditure as well. Many businesses spend five-figures to six-figures monthly for paid clicks. While you can target certain demographics, there have been reports of some pay-per-click campaigns being victims of click fraud. While the industry is working to address click fraud, it is still worthy of consideration.

So how can you utilize an advertising asset to lower your advertising expenditures? It’s quite simple really… By acquiring that very special online address, which describes exactly what you do in just one word.

By controlling the intuitive, dot-com online address (domain name), which describes what you do, in just one word, you gain the authority and trust which is so important online.

Owning that one-word, intuitive domain name, sets your business apart from the other businesses who compete for the same customers. There may be a number of businesses offering the products or services you offer (eg. manicure products), but there is only one Manicure.com.

In addition, online, distance is measured in keystrokes rather than miles, so shorter is better. Your one-word, dot-com address will be easy to key-in to mobile devices.

Your intuitive, one-word, dot-com online address can also bring you a meaningful amount of direct traffic (visitors who come to your website directly, without the aid of search engines). Speaking of search engines, having that one word dot-com address can benefit your search rankings as well.

Most importantly, your intuitive domain name can greatly benefit every other advertising medium you are utilizing. By directing customers to your intuitive, one-word, dot-com online address (your parallel brand), you can see significantly higher conversion rate.

Here’s the best part.  Your one time investment in that very special online address can offer you all of these benefits for many years to come. Even a seven-figure investment can be quite a bargain in consideration of all of these benefits, especially if you analyze the cost of ownership over ten or twenty years.

From an investment standpoint, these very special domain names are hard assets and they are often bought and sold by major corporations. Nissan Motors recently sold the domain name Z.com for nearly $7mm. It is also reported that Vodafone Group recently sold the domain name 360.com for $17mm!

In closing, your intuitive, one-word, dot-com online address can serve as a parallel brand which increases your business and, in time, pays for itself, many times over. In addition, it can be looked at as an asset acquisition rather than a capital expenditure.

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