By Max Clarke
Sedo, the leading online domain marketplace, today reveals that the trading of domain names online has reached new heights, with a 12 per cent growth in sales of web addresses recorded year on year.
The research, which features in Sedo's latest Annual Domain Market Study, highlights the strength of the online property market at a time when offline property prices decreased by 2.4 per cent in the same period . The average value of .com domain names grew by 61.9 per cent from £1,260 to £2,040, the average value of .net by 10.2 per cent from £942 to 1,038 and .org by 55.9 per cent from £922 to £1,437.
The dramatic increase in value of domain names has been prompted by major sales over the past year including the sale of .com extensions, such as Sex.com for $13 million, and leading .org domains like poker.org, for $1 million. Location related domain names once again proved popular over the past year, following the sale of Jerusalem.com and Pakistan.de for $510,000 and $65,450 respectively.
The most lucrative country code top level domain (ccTLD) is the French extension .fr, selling for an average price of £4,297, followed by the British extension .co.uk which offered an average price of £1,291. The most traded ccTLD was .de, which accounted for 46 per cent of country specific domain names sold, followed by .co.uk (20 per cent) and .eu (14 per cent). The most commonly traded generic top level domain name (gTLD) by far and away remained the .com extension accounting for 75 per cent of all sales, followed by .net (11 per cent) and .org (8 per cent).
"The growth in domain name sales has been consistently on the upswing as more businesses recognise their value in growing a company's online presence," says Nora Nanayakkara, Business Development Director at Sedo. "While domain names like Sex.com, which sold for a whopping $13 million last quarter, are highly prized for their branding and marketing potential, in reality many domain names are much more affordable. All shapes and sizes of businesses have the opportunity to extend their brand online if they invest in an armoury of decent web addresses. It helps companies to achieve important goals in growing a business online: to capture the right traffic, secure better search rankings and build a more prominent digital brand."