Is a .Brand Right for You? Six Questions to Ask

On June 20, ICANN, the governing body for internet domain names, approved the final rules that will allow organizations to register brands as internet domains or “.brands.”

This is the biggest change to the internet in 25 years. In addition to the usual generic top-level domains (gTLDs) like .com, .net, .gov and country code domains, we'll soon see domains like .hotel, .beer or .nyc, and company brands such as .canon, .hitachi or even customername.brand.

What does this shake-up mean for retailers? Simply put, companies may pursue domain names and keywords that are at the core of their business — to the right of the dot. The opportunity poses many challenges, including costs, technical requirements and averting consumer confusion. However, benefits for global brands are noteworthy: improved online marketing and personalization; simple and memorable names for advertising; and greater elements of security and trust.

The decision to acquire a .brand gTLD depends largely on brand and marketing strategy, market position, customers, and possibly partners and channels. Conducting a business review and developing a thorough analysis will enable companies to make the most informed decision possible.

There are three basic approaches to new gTLDs: take no action, apply to keep the name from being registered by a competitor or apply for marketing potential. The approach will be straightforward for some companies, but others may need to enlist partners to help with domain name strategy and navigating the gTLD application process.

Here are six questions retailers should consider when determining the best approach:

1. Is your brand name longer than six characters? Companies with long names may not benefit from a branded gTLD. However, there may be generic names of interest, such as category ownership like .coffee or a stock ticker symbol.

2. Is your primary brand unique and highly recognized? Unique brand names may provide inherent brand protection based upon proposed ICANN requirements, so defensive registration may not be necessary. However, it's prudent to research the uniqueness of a brand name in global markets. Common, generic or acronym brand names have a higher likelihood of multiple applications. This is notable for companies that were unable to register their brand in .com or their primary country code domain.

3. Are there entities with identical trademarked brands/names in a different class or jurisdiction? How important is it to own your brand at the top level today? How about in five years? What would it mean to your brand image or business if another entity owned the same name gTLD? Companies with an established and recognized .com may not need a branded gTLD. This applies to companies serving limited vertical markets and those where e-commerce isn't a key channel. We won’t know the full potential of branded gTLDs for several years, but some companies would rather be proactive.

4. How many brands do you have? How many verticals or categories do you operate in? Companies with multiple brands in multiple markets can benefit from domain names where the product brands are associated with the company brand. Branded gTLDs easily enhance brand equity for product names. In some cases it’s beneficial to register a generic domain name for a category or categories — particularly for companies that want to establish or capitalize on their market position.

5. Do you make extensive use of search engine optimization, pay per click, banner ads and advertising? If so, keywords are important. The ability to create short, memorable domain names enhances marketing efforts. Branded gTLDs deliver exclusive access to keyword domain names under your brand. Domain names can link to specific web pages, improving inbound link metrics and providing metrics for specific advertising campaigns.

6. Do you have a significant partner or affiliate channel? A .brand is a way to distinguish trusted or official partners. Trust is an important consideration for internet businesses and is a ranking factor in search engine results. As gTLDs proliferate this will become important. Search engines are likely to place even greater importance on brand gTLDs because their authenticity is easily verified.

The costs and complexities of applying for and managing a new gTLD are sizable. Develop a business case and high-level implementation plan prior to submitting an application to ensure key requirements have been considered. But there isn't much time — the application period opens in January 2012 and closes a few months later. After that it's likely to be two years to three years before applications open again.

Armando Dacal is senior vice president at Melbourne IT Digital Brand Services. Reach Armando at armando.dacal@melbourneitdbs.com.