Domain price drops as Advertisers buy online business

Domain price for the blogspot.com domain fell by nearly 20 per cent to $7.1 million, but the ad agency that bought it has raised about $3 million to make the move official.

Advertising agency GigaOM said Wednesday it is paying $2.5 million for the domain from New York-based Webmaster Solutions, which also bought domain blogspot, which has been sold to another company.

GigaOM bought the domain name from Webmaster last fall and made the move in the spring, saying it had been struggling to find a buyer.

“We’ve been looking for an online domain name to fill the gap and this is our answer,” said Jason D’Esposito, a senior vice president with Gigaom.

Webmaster said it had previously purchased several domains from companies including eBay and eBay UK but none of them had been able to turn them into profitable online businesses.

Domain name prices typically fall after a year or two, but with the recent spike in demand for the blogging services, this year’s drop is notable.

The domain name for the Sydney-based blogspot is owned by the Sydney Morning Herald and will continue to be used on its site, the Sydney Post reported Wednesday.

A spokesperson for Webmaster declined to comment.

Some online marketers are also finding it harder to get online domain names through bidding on them.

Bidding on domains has been a tricky process for many people, said Nick Farrar, senior director of research at online marketplace eBid.

Online marketplace eBuy.com had been trying to secure domain names in recent weeks and has been in contact with several domain registrars to try and find a suitable price.

With a small domain such as blogspot costing more than $1 million to buy, many people have opted to bid on the name for a few thousand dollars, but others have found it easier to bid through eBuy, Farrars said.

Another site that uses bidding as a way of obtaining domain names is blogspotinc.com, which lists domains by subject such as food,technology and health.

There are also a number of other sites that use bidding as an online marketplace for domain names, said Farr, including domain auction site Domain Bidding.

In the past few weeks, a number online marketers have started bidding on the domain to get their names out there.

Dale Cairns, a founder of marketing firm Moxie.com who was recently approached by a company that wanted to auction his domain name, said he has been using bidding as his way of finding domain names.

It’s a little more labor intensive than just going to eBay or buying a domain, but it’s still a way to get a name out there,” he said.”

It’s an option for anyone who wants to get into blogging.

“The Domain Bidders Network has also raised money for Domain Name Services to auction the domain for about $7 million.

Moxie said it is a long-term plan to offer bidding to the public.

More to come.

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