I received this release today and was blown away at the staggering growth of 1&1 Internet. These guys prove that marketing works and if anything they have been over-marketing. They have blown away their competition. I don't even know who is number two in this market. The only concern I have is did they spend too much money and how profitable is the hosting business?
Independent Research Firms Says 1&1 was World’s
Fastest-Growing Web Host in 2004
Company Registered Almost 400,000 New Active Sites;
941,000 Total Hostnames
PHILADELPHIA, January 26, 2005 – 1&1 Internet, Inc. gained nearly 400,000 active Web sites in 2004, making it the year’s fastest growing Web host, according to statistics recently released by Netcraft, an independent Internet research and analysis firm.
Netcraft’s figures show that 1&1 registered 941,000 hostnames and 397,000 active sites in the 12 month period between December of 2003 and December 2004 for a total of 21.9 percent overall growth. The additional sites—which Netcraft pointed out were gained organically and not through any acquisitions—give 1&1 a total of 2,216,469 active sites and 4,437,660 Web sites overall.
“1&1 has seen phenomenal growth in 2004,” said Mandy Davis of Netcraft. “This performance builds on the strong growth seen in 2003, when 1&1 was also the fastest-growing hosting company in our worldwide ranking of active sites. Significantly, 1&1 gained a large number of new sites in the United States, where it entered the market early in 2004, as well as its traditional strength in the European hosting market.”
“The Netcraft statistics affirm that our unique philosophy at 1&1 is being welcomed by users worldwide,” said 1&1 Chairman of the Board Andreas Gauger. “Our goal has been to serve as a one-stop Internet shop where customers can get everything they need to easily and affordably establish a Web site of maximum quality. As the statistics suggest, our approach is working.”
As Davis suggests, 1&1’s brisk growth in 2004 was aided in part by its success in the United States. Referred to by Netcraft as an Internet “giant” because of its dominance in Europe, the company only established a U.S. operation in September of 2003 and didn’t begin offering its full product line until January 2004. By September of 2004 1&1 had already gained enough market share to make it one of the country’s 10 largest hosting companies. As of last month, 1&1 had registered 377,393 domains in the U.S., pushing its U.S. rank to ninth.
In a November interview with The Web Host Industry Review (thewhircom), Gauger attributed 1&1’s success, both in the U.S. and throughout the world, to “…the fact that we are very experienced in Web hosting.” Additionally, Gauger said: “Our products are…very inexpensive to the typical user and supported by strong marketing and technical support.”
Gauger added that 1&1 will continue its aggressive pricing and marketing campaigns toward gaining an even larger share of the U.S. and international markets going forward.