Consumer behavior

Could New TLDs Really Catch On?


The Social Network Movie PosterAs many of us are preparing our comments on ICANN’s latest new TLD guidebook, many companies are also trying to determine if they will actually apply for a new TLD if they arrive as scheduled by ICANN in May of 2011. 

Even though many of the previously launched “new TLDs” did not bring about a meaningful shift in online consumer behavior, there is a shared concern among digital executives over not knowing what will happen with this launch, or what the appropriate action will be.

Imagine if Facebook is one company that applies for a new TLD in the first round.  It might make sense; Facebook has had its fair share of username and security issues and Facebook users spend more time on facebook.com than any other site.  The possibility of creating .FACEBOOK domains for each user, such as PhilLodico.facebook, might be interesting to Facebook and it would likely be valued by users as well.

Facebook alone has over 500 million users.  That would translate to 500 million new domain names; tripling the number of domain names in existence overnight.

Now imagine adding in other Internet powerhouses like Google, Microsoft and Apple, and big brands like Coca-Cola, Disney and others.  These companies have enormous reach in terms of customer touch points, not to mention budgets with which – if they wanted to – they could try to shift consumer behavior. 

Between Facebook’s grassroots consumer behavior shift and a possible direct marketing program by brand leaders, there is no question; there is a chance that new TLDs will catch on.

Wouldn’t it be great if we could sit on the side and wait and see what other companies do?  To see if Facebook does this?  To see if 500 million new domain names are registered and to see what consumers begin to do.  It would.  But ICANN isn’t necessarily going to allow that to happen.

The biggest risk that new TLDs (if approved) present is that we only know that there will be one window that opens.  The last time a window opened was seven years ago. What if ICANN gets overwhelmed with this launch?  What if it takes years to process the 500 applications that they are talking about possibly receiving?  What if ICANN is prevented from moving forward with another window because ofSitting on the Sidelines abuse found in the space?  What if it is 3, 5, or 7 years until the next window opens?

What happens to the brand owners that decided to wait on the sideline if new TLDs begin to catch on?  Those that did apply will have the ultimate competitive advantage while those who didn’t will be sitting on the bench waiting for their chance to play catch up.

While I believe there is still an opportunity to alter if and how new TLDs will be released, this risk of being sidelined is one we all need to take seriously.  And as ICANN has shown us, we need to start thinking about this soon.

Getting the Facts Straight


A recent Slate article titled “www.thosenewdomainnames.areforsuckers,” caught my attention last week.  With all the controversy over ICANN’s planned rollout of a potentially unlimited number of new generic top-level domains (TLDs), I found the frankness of the title refreshing.  As someone who works closely with brand owners, both at FairWinds and CADNA, I have been wary of the prospect of opening up the domain name space in such a radical way.  The article explains ICANN’s plan for launching new TLDs with what I thought was an appropriately critical tone, questioning whether or not there actually exists a need for new TLDs.  But as the article progressed, I realized that the reporter’s reasoning was completely off base.  He actually asserts that cybersquatting is no longer a problem, and that the new TLD program is pointless because “domain names themselves just don't matter that much nowadays.” He claims that most people use search bars to navigate the Internet, and that browsers are now sophisticated enough to be able to “tell” what site the user is looking for, citing Google’s Chrome in particular.
 
FairWinds has conducted studies that prove that all users, at some point or another, use direct navigation to browse the Internet. Domains do matter, because eventually all users type a domain directly into the address bar in hopes of finding the content they are seeking.  Furthermore, nearly all print, radio and TV advertising directs consumers to a Web site, not to Google.  Advertising supports users going directly to a Web site, and both user behavior and the enormous traffic to millions of typo- and combo-squatted domains demonstrate it.  After all, the vast majority of the tens of millions of cybersquatted domains exist to court type-in navigators.
 
Cybersquatters understand advertising and user behavior very well, which explains why cybersquatting has continued to increase every year.  This article failed to recognize that fact, and also failed to realize how likely it is that opening up with domain name space with unlimited TLDs will exacerbate the problem.  Instead, the author claimed that cybersquatters have moved on to social networking sites, insisting that getting one’s identity on Facebook and Twitter is much more important than getting a good domain.  This may be true for individuals, but for businesses, a Twitter account or a Facebook page does not even come close to the legitimacy of a good domain name.  
 
Consumers expect to be able to find a business online via its own web page, not to have to sift through social network pages to interact with the brand. And by making a slew of new TLDs available, it will be even harder for consumers to quickly access the brands they seek.  If it’s so hard for consumers to remember domains now, as the article attests, how will they possibly remember – across all the products and services they seek out online – if the domain is brand.com, city.brand, product.brand, brand.brand, etc…?
 
Even though it began so promisingly, this article completely missed the mark on cybersquatting, how domain names are used, and the expansion of the domain name space.  These are issues of concern not just for businesses, but ones that will ultimately affect the online experience for everyone, particularly for consumers and everyday users.  With so many conflicting interests at stake, it is critical to have accurate information about these issues.