The keywords for any given domain name provide clues as to the intent of the visitor before arriving.

Another use of domain parking is to be a placeholder of an existing web site. A company might choose to use this method to redirect its website traffic to another web site it owns.

Expired domains that were formerly websites are also sought after for domain parking. A domain that was used as a website and is allowed to expire will still maintain most of its prior inbound links. These types of domains usually start off with their largest amount of visitor traffic initially after being claimed from the domain drop lists. As website operators and search engines begin to remove the former inbound links, the traffic to the parked domain will begin to decline.

On domains with a 'one-click' implementation, a click on a keyword is not necessary to generate ads. The ads are targeted based on the domain name.

Domains with 'two-click' implementations require a click on a keyword or a keyword search to generate ads.

Domain parking can be classified as monetised and non-monetised. In the former, ads are shown to visitors and the domain is 'monetised'. In the latter, an "Under Construction" or a "Coming Soon" message is put up on the domain. This a single page web site that people see when they type the domain name in a web browser. This is one quick way for getting an Internet presence. Domain names can be parked before a web site is ready for launching.