Corporate clients have a mixed reaction to the proposed advent of new generic top level domains (gTLDs), says Melbourne IT chief executive Theo Hnarakis.
He says that while larger corporate clients with sophisticated online brand and marketing strategies see branding opportunities, they are concerned the new gTLDs will increase the cost and complexity associated with managing and protecting their digital brands.
In a survey conducted in late 2008, the company’s top tier corporate clients in Europe, the US and Australia were asked about their perceptions and their intentions in relation to the new gTLDs that will allow companies to secure their brand name as a top level domain (for example, www.brand as opposed to www.brand.com).
The survey showed that 14% of respondents were keen to pursue a branded gTLD for their business as soon as possible.
However more than 70% of respondents believe the new gTLDs will be confusing for internet users, and almost 100% of respondents feel that new gTLDs will increase the cost of online brand protection. The survey also found that 70% do not agree that a brand name gTLD will reduce the need for other domain name types.
“There is still confusion in the market as to what these new gTLDs will mean in practice. Although the roll out now seems likely to be delayed until early 2010 while trademark issues are resolved, we recommend that brand holders start preparing for this change now,” Hnarakis says.
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