Keyword Economy

Posted on June 22, 2007
Filed Under Making a living online |

Om Malik in Time to pay attention to Paris Hilton? is scratching his head wondering how could Daylife, a trivial news aggregator, get $8.3 mln of venture capital funding. The answer is keyword economy. In virtual universe of Internet keywords are currency. Market of domain names is driven by generic keywords. Take, for example, Business.com sold in 1997 for $150,000 and then for $7.5 mln in 1999 - Michael Arrington says: “Business.com now has EBITDA of around $15 million/year. A $400 million acquisition price is a 26 multiple on current revenue, which is on the high end of current valuations.”

Exchange rate of keyword “business” has grown steadily fueled by PPC advertising and growing number of “business”-related searches. Number of monthly “business” searches is about 1,500,000 a month according to Overture. Business.com is the first result on Google’s search page. In keyword economy this place has value of $400 million.

Paris Hilton, whom Om Malik dismisses as “a sad reflection of shallow modern celebrity culture”, is extremely precious commodity in keyword value terms. According to Overture number of monthly searches “paris hilton” has reached 1,690,878, while “william shakespear” got only 63,848. Keyword economy holds high value for Paris Hilton, even without accounting inherited hotel empire.

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Comments

One Response to “Keyword Economy”

  1. Abhishek Daaga on October 31st, 2007 6:23 am

    Business.com’s worth will make me go crazy… If i had time machine then i would go back & buy all .com’s :)) & make millions now… LOL

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