When people are looking for a specific website, instead of typing the domain into the URL bar of the browser, they will often type it straight into the search engine. They do this because they know most of the time the website domain they’re looking for will show up as the first result and they’ll simply have to click on it to go to the website.
An example of this would be, if I typed in loreal.com, I see the following PPC ads
Bidding on this domain name means you can also put your ad in view of people who are already in your target market. To build upon this using a tool such as quantcast.com you can view information about people who searched for that site and more importantly what other related sites they searched for:
This allows you to build a list of competitor domains to target. This builds a laser focused group of ads as these people are searching for what you are providing. You can also use Alexa as well: