Expanding Top Level Domain Names
Tags: advertising age, burger king, coke, generic top-level domains, gtlds, icann, internet corporation of assigned names and numbers, mcdonald's, pepsi
Are .net and .biz not doing enough to spice up your URL? Get ready for a slew of (dot) options.
A recent article in Advertising Age points to the proposed expansion of generic top-level domains.
Generic top-level domains (gTLDs) are the short words that follow the dot in a web address, such as .gov or .edu. There are 21 gTLDs, with .com, .net, and .org capping about 91% of all websites.
A proposed expansion of these domains could add hundreds more to the mix.
The expansion would allow companies to supplement their .com TLD with more descriptive, on-brand TLDs. For example: John Deere could use “JohnDeere.tractor,” “JohnDeere.mower,” and “JohnDeere.green,” among other options.
Who’s proposing this expansion? A nonprofit agency, the Internet Corporation of Assigned Names and Numbers (ICANN), which has a Joint Project Agreement with the US Department of Commerce. ICANN believes that opening up new TLDs would increase innovation and competition in the domain name market. And, though .coms aren’t running out, the space is crowded.
The expansion has its downsides. Mainly, it’s expensive.
Registering a top-level domain name is significantly more involved than registering a domain. When applying for a TLD, you’re applying to run an entire registry. A registry is a business, just like .com or .net, and that doesn’t come cheaply.
The application fee for a TLD is $185,000. Plus annual fees that range anywhere from $25,000 to $75,000. That’s a lot of money, especially for companies pushed to snatch up several brand-related TLDs.
What’s more, if two companies wanted the same name, the name would be auctioned off to the highest bidder.
The battles between Coke and Pepsi, or McDonald’s and Burger King would undoubtedly be epic. No wonder the expansion has caused trademark holders some concern.
Its these concerns, according to ICANN’s March 7th news release, that have kept the proposed expansion from, as of yet, going through. But that doesn’t mean it won’t.
So it’s best to be prepared. Marketers, eager to put their clients’ brands in sticky new places, should get ready to rumble.
