November 2004ROI 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 2004ROI 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 2004ROI on Pharmaceutical Domain Names Learning from other Industries

November 2004ROI on Pharmaceutical Domain Names Unbelievable Deals during the DotCom Bubble Compaq spent $220 million to acquire the original shopping.com web site

November 2004ROI on Pharmaceutical Domain Names What happened with spectacular Domain Name Purchases?

November 2004ROI on Pharmaceutical Domain Names business.com – sold for $7.5 M in 1999 No. 1

November 2004ROI on Pharmaceutical Domain Names jobs.com – sold for $ in 2002 No. 1

November 2004ROI on Pharmaceutical Domain Names wine.com – sold for $3.3 M in 1999 Today No. 2 at Google

November 2004ROI on Pharmaceutical Domain Names drugs.com – sold for $ in 2000 No. 1

November 2004ROI on Pharmaceutical Domain Names gesundheit.de – sold for $ in 2001 No. 3

November 2004ROI 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 2004ROI on Pharmaceutical Domain Names A short Definition

November 2004ROI 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:

November 2004ROI on Pharmaceutical Domain Names View on Pharmaceutical Market

November 2004ROI on Pharmaceutical Domain Names Top 10 Companies already secured some Assets Johnson & JohnsonNovartisAstraZenecaGSKPfizer 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 2004ROI on Pharmaceutical Domain Names GSK owns some of the most valuabe Domain Names... No. 2

November 2004ROI on Pharmaceutical Domain Names... and occupies the top Search Engine Rankings! No. 1

November 2004ROI on Pharmaceutical Domain Names Generic Keyword Domain Names are also successful in Germany... No. 2

November 2004ROI on Pharmaceutical Domain Names... in Sweden... in other Countries... No. 3

November 2004ROI 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 2004ROI 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 2004ROI on Pharmaceutical Domain Names Why are Generic Keyword Domain Names so valuable?

November 2004ROI 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 2004ROI 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 2004ROI 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 2004ROI 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 2004ROI on Pharmaceutical Domain Names Best Practice Examples

November 2004ROI on Pharmaceutical Domain Names Good Pharmaceutical Marketing Practice Keyword - Generic website “ - 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 “ - Catches users which remember the slogan from a DTC advertising Brand - Branded website “ - Catches users which remember the brand from a DTC advertising

November 2004ROI on Pharmaceutical Domain Names Good Pharmaceutical Marketing Practice Phrase - Some generic keyword phrases websites like “ – 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. “ “ burn.com”, or “ are domain names to be registered as well

November 2004ROI on Pharmaceutical Domain Names Calculation of ROI on Domain Names

November 2004ROI 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 2004ROI 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 2004ROI 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 KeywordSearch requests per day* Search requests per month* Search requests per year* drugs120,0003,600,00043,800,000 diabetes110,0003,300,000 40,150,000 asthma31,000930,00011, leukemia22,000660,0008,030,000 osteoporosis12,000360,0004,380,000 "rheumatoid arthritis"6,800204,0002,482,000

November 2004ROI 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 2004ROI 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 2004ROI on Pharmaceutical Domain Names Chiron Vaccines in Italy - Example

November 2004ROI 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 2004ROI on Pharmaceutical Domain Names Actions taken Buy in of meningite.it Use of meningite.it in a cross-media awareness campaign

November 2004ROI on Pharmaceutical Domain Names Meningite.it at Google (after campaign) ~ search requests monthly for ‘meningite‘ in Italy No. 2 At search results Keyword-Ad

November 2004ROI on Pharmaceutical Domain Names Domain Name and Rankings rule the Traffic Visits from...RequestsClick rateVisits Requests at Google for ‘meningite‘ 10,00010% (search result)~1,000 5% (keyword ad)500 Request other search engines 10,00010% (search result)~1,000 Type-in Domain 25%~1,000 External links~500 Total monthly~4,000

November 2004ROI 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 2004ROI on Pharmaceutical Domain Names Resources

November 2004ROI on Pharmaceutical Domain Names Pricing

November 2004ROI on Pharmaceutical Domain Names... some more Prices...

November 2004ROI on Pharmaceutical Domain Names … and the Story continues!

November 2004ROI 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 2004ROI on Pharmaceutical Domain Names Domain Name Values – The high End Domain Name ExamplesEstimated ValueWhy? drugs.com - health.com pharmacy.com above $5M1st 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 $5Mnot.com! diabetes.com - aids.com cancer.com - diet.com $500,000 to $ 1MOne of the top 10 disease search terms diabetes.info - asthma.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 $50,0001 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 2004ROI 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 key 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 2004ROI on Pharmaceutical Domain Names Backup

November 2004ROI on Pharmaceutical Domain Names Owner Data available for top 200 Terms