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Old 12-22-2004, 07:25 PM   #1
Larwee

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Lightbulb Go Daddy on the Super Bowl

Go Daddy is going to be spending over two millions dollars on Super Bowl advertising, then they will be spending a million dollars a month after that on offline advertising.

I have used Go Daddy for several years and they are my favorite registrar. I'm glad they have these millions to spend and I would like to see them as an even stronger company. I like dealing with strong companies.

They want to reach people who haven't heard about them. Naturally there will be millions of people watching the Super Bowl who would have absolutely no use for Go Daddy or any registrar. But, they hope to attact new business.

Some are critical of them and say they might end up hurting themselves by spending all of the millions they plan to spend next year (2005).

Below is an article with more details.
--------------------------------------------------

Go Daddy to Purchase Super Bowl Ad

December 22, 2004 -- (WEB HOST INDUSTRY REVIEW) -- Web hosting provider and domain registrar Go Daddy (godaddy.com) will reportedly purchase a Super Bowl advertisement, a move that will cost the company millions of dollars and harkens back to the days of the Internet bubble when dot-com companies dominated Super Bowl advertising.

Fox is charging $2.4 million for a 30 second advertising spot during its broadcast of the Super Bowl in Jacksonville, Florida on February 6, 2005.

Bob Parsons, CEO of Go Daddy, said in an interview with Clickz.com (clickz.com) that it purchased the Super Bowl ad because its marketing efforts to this point have been restricted to the online medium. He added that the ad was just the tip of the iceberg as the company prepares to launch an aggressive offline advertising campaign.

"We commissioned some market research six months ago, took a hard look at people who aren't doing business with us, and concluded that they aren't aware of us," Parsons told Clickz.com. "So what better way to enter [an awareness campaign] than to use the Super Bowl? The Super Bowl's not a one-shot ad for us. We'll follow up with a campaign that spends a million a month, mostly in TV, radio and print. We're already doing print right now in USA Today and other papers. TV and radio are going to wait for the Super Bowl to kick off."

The move has drawn criticism from some corners. According to a report by research and analysis firm Netcraft (netcraft.com), advertising weblog Brand Autopsy contained a post by blogger John Moore that harshly criticized the move. Parsons reportedly replied to the post, adding his own take.

"The earlier dot coms that busted after advertising on the SuperBowl were never viable to begin with," Parsons said in the post. "We've been profitable since Oct 2001 and expect sales in 2005 (without the Super Bowl) of close to $200 million."

According to Clickz,com, another Internet company, Careerbuilder.com, has also purchased Super Bowl ads.

Last edited by Larwee; 12-22-2004 at 07:26 PM.
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Old 12-22-2004, 11:26 PM   #2
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Superbowl ads work for some internet companies, but I'm not sure that a domain registrar will see positive ROI from the placement.

It's easy to see why Monster.com, HotJobs, Amazon, Yahoo! and other consumer-oriented brands with wide and diverse user bases advertise on the Superbowl and other high-profile events. Amongst its target audience, though, GoDaddy arguably has huge brand recognition - driven largely by its price point.

Spending $2 million on 30 seconds to promote what is essentially a low yield, low margin product is definitely risky. Still, if they have enough cash in their coffers and believe that there are enough IT service decision makers in the Superbowl audience who haven't already heard of GoDaddy, then good for them.

The follow-up elements are necessary, though. It's not often you see a company of that size, with such a huge customer base, which has yet to work traditional media into its marketing mix.
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Old 12-27-2004, 05:16 PM   #3
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I wonder what the ad will be - and whether it will air in Canada too. They could get their money's worth if they include a 'wardrobe malfunction'
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Old 12-27-2004, 07:20 PM   #4
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I'm wary of this move by Godaddy as well. Best case scenerio, they get tons of new customers, and customer support suffers. As a more seasoned webmaster, I'd probably consciously stir away from Godaddy (or other registrars that spend big on advertising), since the smaller registrars tend to offer a lot better personal support.
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Old 01-31-2005, 01:05 PM   #5
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GoDaddy now says they will have two spots on the Super Bowl rather than just the one they were going to have.

They will have the 3rd commercial in the 4th commercial break of the 1st quarter. Then they will have the 2nd commercial during the 2 minute warning in the fourth quarter.

As we all know, dot com advertising on Super Bowl games is very rare now.

I realize that GoDaddy has over 600 employees and they are involved with more than just name registrations, and I also realize that GoDaddy is a company that is making money.

As a GoDaddy customer I wonder if the millions they are spending on this advertising will have any impact, either good or bad on the company or the customers.
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Old 01-31-2005, 02:24 PM   #6
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My assumption is that their ads will be pushing their web hosting type business instead of domain registrations.

The margins are much more lucrative in that end of the business. I've been a loyal customer of theirs for 3-ish years, only as a domain registrar. I bet they are going to start to push web hosting as their core business, and domain registrations as one of many value added products/services.

If the ads are geared to domain registrations, I can't imagine how there would ever be a positive ROI. Branding commercials have value, but I personally don't see branding value at that rate per 30 seconds for a small subset of the eyeballs.

Last edited by esoomllub; 01-31-2005 at 02:25 PM.
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Old 01-31-2005, 08:48 PM   #7
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Lightbulb I heard the block certains countries

I had a friend from Asia who told me he just cant access godaddy bec. his country if blocked from accessing it.
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Old 01-31-2005, 09:03 PM   #8
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I enjoy commercials and speculating as to why companies make their decisions. Why is the Cartoon Network trying to sell me a new Ford? Things like that. It tells a lot about who you're watching with and what they want.

I've only got a few years under my belt in the internet. Does this mean that hosting and domain registration have become so mainstream that a good percentage of the Superbowl audience is shopping for them? Has this already been the case and I'm just too new to know it?
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Old 01-31-2005, 10:01 PM   #9
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Quote:
Originally posted by DougM
I've only got a few years under my belt in the internet. Does this mean that hosting and domain registration have become so mainstream that a good percentage of the Superbowl audience is shopping for them? Has this already been the case and I'm just too new to know it?
Hosting and domains are so mainstream that this is a perfect time for GoDaddy to do some offline advertising. Heck, my mom has a couple of websites, and she can barely work her vcr. With domains at 8 bucks and hosting for a year at 10 bucks or less you are talking about an investment of $20/year to have your own website and at that price everyone wants one and everyone can have one.

When you couple the great entry price with the fact that the domain/hosting businesses are so saturated and their is almost no branding going on, if someone like GoDaddy can really get people to notice them and have them stand out. They are going to really grow as people who didn't know who to buy hosting/domains from will switch to godaddy.
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Old 02-01-2005, 08:27 AM   #10
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The commercial that fox rejected:
http://www.godaddy.com/gdshop/superb...ing.asp?se=%2B
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Old 02-01-2005, 10:57 AM   #11
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A couple new thoughts....

1. If that is an ad they planned on running... I am glad Fox rejected it. It just seemed dumb. No real branding, and they would have to sell a "zillion" domain name registrations at their current prices to come close to a positive ROI. Just my opinion on the branding issue, but it sure reeked (sp?) of 1999-2000 internet ads for soon to be non-existent internet companies. I like the company and would like to see them stick around for a few years, so I'd like them to spend their money wise.

2. I just found out today that they are offering VPS and Dedicated server solutions, at very reasonable prices (not the cheapest, not the most expensive either). Now, I can see ads for that possibly showing a positive ROI, or at least close enough to justify the difference as a branding cost.

I do enjoy watching the Super Bowl ads, so I will be watching and comparing theirs against other tech companies. And of course I realize it is all a matter of personal opinion. Case in point, I absolutely loved the Budweiser horse "gas" commercial last year (I do have a sick sense of humor), but it was panned by nearly all of the "experts" and was pulled pretty much right away.
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Old 02-02-2005, 01:50 AM   #12
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Quote:
Originally posted by funpage
The commercial that fox rejected:
http://www.godaddy.com/gdshop/superb...ing.asp?se=%2B
You're kidding. GoDaddy execs are willing to spend approx. $5 million in placement fees and THAT is the ad they were wanting to run?

It does nothing to make domain names more accessible or to illustrate GoDaddy's unique value proposition. Rather, it seems to be a typical pandering grab for mass eyeballs via novelty and moderate shock value.

Maybe GoDaddy figures that they have a brand advantage in the webmaster market already and that they need to lower their standards to generate buzz amongst a broader grassroots audience of future teen bloggers then perhaps an ad of this type will work for them. Personally, though, I don't see how the company will be able to grow its profitability via this investment unless their new creative blows the socks off this first attempt.
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Old 02-06-2005, 07:11 PM   #13
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I just saw the first GoDaddy spot on the Super Bowl. They will have another spot during the two minute warning of the second half, but it will be the same commercial.

They are paying $2,400,000.00 per spot, for a total of 4,800,000.00 for the two commercials.

I guess it will get the attention of some people, plus GoDaddy is easy to remember.

I understand they have more advertising planned for the rest of this year, so this might be a good way to introduce themselves to people who have never heard of them.

The good thing is that GoDaddy is making money and has plenty of money. This close to five million dollars they are spending on the Super Bowl commercials won't hurt them if they are of no help to them.

So, this is different from back a few years ago when dot com companies that weren't making money were spending a bundle on Super Bowl ads to try to help them make it.

Since I am a long time GoDaddy customer, I guess I am in favor of anything that will help make the company better.

If these commercials help them and end up making it possible for them to make things better for their customers, then I guess it is a good thing.

I personally don't have a problem with them spending the money as long as it doesn't cause anything to happen that will hurt the present customer.

While the commercial does help get the Go Daddy name before millions of people, I have seen many Super Bowl commercials that were a lot better.
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Old 02-07-2005, 03:49 PM   #14
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Maybe they are just positioning themselves for a buy out and the ads were really targeted for google/yaho/etc...

?
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Old 02-08-2005, 01:01 AM   #15
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Fox had approved a GoDaddy commercial. But it wasn't screened and approved by the NFL. That same commercial was scheduled to air twice during the game.

As it turned out the commercial was only shown one time. After it was shown the first time Fox and the NFL decided not to show it the scheduled second time after the NFL complained about the commercial. They felt the Go Daddy commercial was in poor taste.

GoDaddy has seen a huge increase in traffic to their website. Also the news reports about their second commercial being pulled has helped them by giving them still more publicity.

Last edited by Larwee; 02-08-2005 at 10:59 PM.
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