Top 10 Predictions for 2011

Jeff Kupietzky
CEO & President
Oversee.net
2010 Highlights

• 50% growth in Oversee Aftermarket revenue

• 10%+ growth in Moniker registrar
• Dramatic growth in European operations
• 10%+ increase in RPC
• Added 50 new employees
• Resolved major litigation
• Acquired several lead generation properties
• Broke into mainstream press such as CNBC , CNN and SmartBusiness
• Leveraged successful DOMAINfest franchise to 3 regional events
• Continued investments in monetization led to Precision Targeting Engine launch
2010 Themes - Recap

1. The emergence of new traffic sources such as social

and mobile
2. Improving velocity in domain name aftermarket by
reaching retail customers

3. Solving the domain build-out gap

Prediction #1 – Increased Premium Sales

2011 will see several sales over $5 mn for

category-defining domain names.
Prediction #1 – Increased Premium Sales

Top 2010 Sales Sold For

Sex.com $13 million

Slots.com $5.5 million
Dating.com $1.7 million
Tshirts.com $1.3 million
Photo.com $1.2 million
Flying.com $1.1 million
Zip.com $1.0 million
Poker.org $1.0 million

Source: DNJournal
Prediction #1 – Increased Premium Sales

Books.com
Clothes.com
Loans.com

Baby.com

Rum.com Mortgage.com

Toothpaste.com
Prediction #1 – Increased Premium Sales

Domains for Sale Min Bid

Gambling.com $5 million+
Restaurants.com $5 million+
XXX.com $5 million+
Stocks.com $3.5 million
Patents.com $3.5 million
Tools.com $2 million
Bracelets.com $2 million
Girl.com $1.6 million
Brakes.com $1.3 million
Prediction #2 – Registry/Registrar Integration

Registries will vertically integrate with registrars

especially due to introduction of new gTLDS.
Prediction #2 – Registry/Registrar Integration

Examples of New gTLDs

.berlin .eco
.london .hotel
.paris .shop
.sfo (San Francisco) .music
.nyc (New York) .sport
Prediction #3 – IPO Surge

IPO window will open again as evidence by

Demand Media successful IPO.
Prediction #3 – IPO Surge

IPO Industry Trends Since 2008

New IPOs
120
100
100

80

60
42
40

20
17
3
0

2008 2009 2010 2011F

Source: Renaissance Capital

Prediction #3 – IPO Surge
Prediction #3 – IPO Surge

Company Segment Date of IPO Price Rise

Lead Generation February 2010 53%

Local Ads May 2010 60%

Mobile Phone Software June 2010 90%

Stored Value Cards July 2010 75%

3-D Technology July 2010 41%

How-to Content January 2011 18%

Prediction #4 – Record M&A in Tech

There will be a record year of M&A from the

large cash hoards of tech companies.
Prediction #4 – Record M&A in Tech

Spend on Tech Mergers vs. Top Tech Company Cash Hordes

in billions

$137 billion
Spend on Tech Mergers vs. Top Tech Company Cash Hordes
in billions IBM $11 billion
Oracle $23 billion
Apple $25 billion
Google $33 billion
Microsoft $43 billion

$17 billion
$6 billion

IPO 2010 M&A 2010 Cash Hordes in Top Tech Companies

Source: Renaissance Capital, Capital IQ, Bloomberg
Prediction #5 – Google More Partner Friendly

Google will face real competition that will change

their approach to the channel.
Prediction #5 – Google More Partner Friendly

The commission’s action “underscores why the

FairSearch.org coalition is urging the Justice
Department to challenge Google’s proposed
acquisition of ITA Software to protect consumers
and competition in the online travel market.”

Tom Barnett,
Counsel to Expedia and former Assistant Attorney General
Prediction #5 – Google More Partner Friendly
Revered
Adored Questioned

1980 1990 2000 2010

Prediction #6 – Killer App in Social

Customer service will be killer application to

leverage social networks for businesses.
Prediction #6 – Killer App in Social
Prediction #6 – Killer App in Social
Prediction #6 – Killer App in Social
Prediction #7 – Tablets Within Mobile Will Rise

Mobile handsets will battle it out and winner will

be 9.7 inch design pioneered by Apple iPad.
Prediction #7 – Tablets Within Mobile Will Rise
Prediction #7 – Tablets Within Mobile Will Rise

“Tablet adoption is occurring at an even

faster pace than the historic rates set by peer
devices such as smartphone, computer, mp3
players, game consoles, and DVD players.”

Mark Ritorto, President, Infinite Research

Prediction #7 – Tablets Within Mobile Will Rise
Prediction #7 – Tablets Within Mobile Will Rise

Platform Segment Industry Leader

Search

Social

Mobile

eCommerce

Local ?
Prediction #8 – Faster Path to App

New site development will focus on reducing

number of clicks to get to actual
application functionality.
Prediction #8 – Faster Path to App
Prediction #8 – Faster Path to App
Prediction #8 – Faster Path to App
Prediction #8 – Faster Path to App
Prediction #8 – Faster Path to App
Prediction #9 – New Traffic Valuation

Value of traffic will be assessed for its data value

along with its current category RPM.
Prediction #9 – New Traffic Valuation

Avoiding Privacy Risks

Prediction #9 – New Traffic Valuation
Prediction #9 – New Traffic Valuation

300 Million Uniques Per Month on the

DomainSponsor Network
Prediction #10

Pro Football will come to LA.

Prediction #10 – Pro Football in LA
Summary of Key Trends

• Shared values led to common platform

• Optimism for future led to innovations
• Clear exit options
Summary of Key Trends

• Emergence of industry leaders dominating their segments – but

proliferation of those platforms

• Premium on innovation – developing solutions that get closer to the

consumer adding real value to the ecosystem

• Availability of exit capital through large tech M&A and lighthouse IPOs

• Result: 2011 will be banner year for Value Creation activities

Top 10 Predictions for 2011

Jeff Kupietzky
CEO & President
Oversee.net

Q&A