Ten to fifteen percent of all search traffic is generated by direct navigation: people speculatively typing domain names directly into a browser's address bar, expecting to find relevant content. This "primary traffic" is highly targeted and offers the highest conversion rates. Smart businesses buy as many relevant domain names as possible to help lead searchers to their site, rather than paying (again and again) for every click to search engines.
Marketers can increase traffic to websites by linking a web of complementary domains and product-specific microsites to their main business. Selecting domains that are descriptive of individual products, services and connecting them to an appropriate landing page within a site can effectively accelerate purchase activity and help better target (or replace) search advertising dollars.
Another key driver of interest in domain names is the need by companies of all sizes to effectively develop and protect their online brand. As a company's investment and reliance on online marketing increases it becomes ever more important to control all of the ways by which customers and partners find those web properties. Smart companies not only buy their core brand name in each major TLD (e.g. com, net, org, etc.) but each of the typos and close variations of their brand names
Domain names are the "real estate" of the Internet, and as such, are steadily increasing in value as the most desirable locations become more scarce. As the strategic importance of an online presence rises for business the world over, the price for a good domain will continue to rise in kind.