A case study by Efficient Frontier mentions how using the Google Adsense for Domains network doubled the conversion ratio of search ads for their clients. According to their website, "Efficient Frontier manages more than $400 million in annual PPC spend under management, counts 80 of the top 500 search advertisers as clients and manages over 30 million keywords".
Tommy Hanson, Efficient Frontier's Director of Partner Relations:
"Our clients' conversion rates with domain ads are double their conversion rates on search. Domain park sites generally convert at a rate of over 5%, while search and content conversion rates are at about half that." Furthermore, Efficient Frontier's clients are paying for cost-per-clicks that are equal to that on search for conversions that are coming in at twice the rate. "When we analyzed the results, we were shocked. We didn't expect to see that domain park sites can bring in the quality of traffic necessary to result in twice the conversion rates, at a cost-per-click that's equal to that on search."
Finally there is some public statistical data on the conversion of domain parking ads. You can read the full study in PDF format. Interesting that the sidebar mentions that Adsense for Domains is part of the Google content network, which I don't think is the case.
Related topics: Domain Names
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