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Parked Domain: What You Need To Know

Simon Jones
September 5, 2024

A parked domain is a web address that isn’t being actively used for a website but remains registered by someone. It’s like reserving a plot of land without building anything on it. Businesses, advertisers, and even domain investors often encounter parked domains, sometimes without realising it.

Having a clear understanding of parked domains is crucial, especially if you’re investing in digital advertising or domain purchasing.

This blog will dive deep into the ins and outs of parked domains, why they exist, their potential impact on your business, and how you can avoid costly mistakes related to them. You’ll find everything from understanding how Google Ads has recently changed its policies around parked domains to tips on avoiding wasted ad spend.

What is a parked domain?

A parked domain is simply a domain name that someone has registered but is not actively using. Instead of being linked to a live website, parked domains might display placeholder content, ads, or just a simple message saying, “this domain is available”. People often buy and park domains to hold onto them for future projects or to sell them later for a profit.

For businesses and digital advertisers, parked domains can become a challenge, particularly if their ads end up being shown on these inactive sites. This is where knowing the difference between an active and parked domain becomes key, especially if you are investing in digital marketing campaigns.

Content Suitability Update

Google have recently informed advertisers of a Content Suitability update which will have an impact on Parked Domains for Google Ads.

From October 2024 any new Google Ad accounts created will be automatically opted out of serving ads on Parked Domains. Advertisers with Search and Performance Max campaigns in new accounts won’t appear on Parked Domains by default. Advertisers want their ads to appear on Parked Domains and will have to opt-in via the Content Suitability settings in Google Ads.

Although a fairly outdated practice, generating revenue from Ads shown on the page of a parked website used to be a popular way of monetising an unused domain. The scale of this practice and the impact of this Content Suitability change remains to be seen.

What is Content Suitability?

Content Suitability allows advertisers to opt out of showing ads on or alongside certain videos, websites and mobile apps that may not align with brand guidelines or a business ethos. These suitability settings relate to campaigns running on YouTube and the Display Network. Google provides the option to choose between different Inventory Types based on content guidelines that range from Expanded Inventory (broad) to Limited Inventory (strict).

Why are domains parked?

Domains are parked for a variety of reasons. Sometimes, people purchase a domain to use it later, whether for a business, a blog, or personal use. In other cases, domain parking is used for speculative purposes, where individuals buy domain names that they believe could be valuable in the future and then attempt to sell them at a higher price. Domain investors often rely on this tactic, especially with catchy or premium domain names.

Another reason domains get parked is to display ads. The domain owner can earn money through services like Google Ads, which display ads on the parked site. Visitors to parked domains might not get the content they were expecting but instead be shown advertising banners. In many cases, this advertising model has led to problems for businesses running paid ad campaigns.

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How to avoid wasting money on parked domains

Avoiding parked domains in your ad strategy requires a bit of diligence. The first step is to ensure that any advertising platforms you use allow you to opt out of displaying ads on parked domains. Google Ads has settings that can help with this, though not everyone is aware of them. It’s important to regularly review where your ads are being displayed and filter out low-quality placements.

In addition to managing ad platforms, you should also think about domain purchasing with caution. If you are looking to buy a domain, make sure it’s not parked by researching its history and usage. Buying a parked domain could mean you’re investing in something that doesn’t have the traffic potential or reputation that you expect.

Recent changes in domain parking and advertising

The world of domain parking has seen several shifts in recent years, especially with major players like Google adapting to the challenges it creates for advertisers. Google’s recent decision to opt new accounts out of parked domain ads signals a growing awareness of the problem. This change means that for many businesses, there’s less chance of their ads being wasted on these empty sites.

But for those with existing accounts, Google’s update isn’t automatic. You’ll still need to manually change your settings to ensure that you’re not spending on parked domains. It’s a small step but can make a big difference to your ad budget.

How Proof3 can help your business

At Proof3, we believe that a well-informed business is a successful one. With our expertise in eCommerce and our team of Digital Experience Specialists, we’re equipped to help you avoid the costly pitfalls of parked domains. Whether you need guidance with your advertising strategy or help in choosing the right domains, we’re here to ensure your efforts pay off.

Don’t let parked domains drain your resources. Reach out to us, and let’s talk about how we can help your business thrive in the digital landscape. The Proof3 team is always here to offer support and expertise to make sure your online investments work for you.

Written by

Following a successful career in Data Systems and Web Management, both in the UK and Australia, Simon decided to focus his creative and analytical skills on developing successful data-driven campaigns for innovative brands and retailers. Always striving to exceed client expections, Simon uses his digital marketing knowledge and expertise to build paid strategies that maximise lead generation and drive conversions. Away from the office Simon enjoys festivals, music production and craft beers....quite often at the same time!