Domain investors are seeing steep declines in parking revenue as Google’s advertiser opt-out for Adsense for Domains (AFD) enters its final phase.
Since February, advertisers have been gradually allowed to opt out of parked domain traffic. Early effects were minimal but by late August, major buyers began pulling back. Traffic and search volume remain stable, yet ad clicks have fallen sharply; evidence that the ad pool has thinned, leaving mostly low-paying run-of-network advertisers.
“The most valuable advertisers were evidently scheduled for the final phases,” Giant Panda noted in its latest newsletter. “This sucks. But we expected it would happen, and it is finally happening.”
The opt-out process should conclude by the end of Q3, with some categories, such as casual gaming, already showing signs of advertiser return and RPM recovery. Still, the overall rate of those that opt in remains low.
Giant Panda continues discussions with Google about the future of AFD. While Google insists the channel isn’t being retired, concerns remain that alternatives like RSOC are poorly suited for type-in and expired domain traffic.
For domain owners, the takeaway is stark: PPC earnings from parked domains are shrinking and diversification of monetization strategies may be more critical than ever.
Perhaps it’s time to develop those parked domain names? 🤔
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