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Not merely DNS names, but in IP routing, announcing a route is known as "advertising" it. You and your ISP are literally advertising a path for others to find your site via TCP/IP.
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no, that is a ridiculous line of reasoning
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Not really.

Why would people pay so much for the $brand_name.com, etc if there wasn't a marketing component to it?

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Having a marketable address is not advertising.
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