Posts Tagged ‘success’

A new boom to come? Re-evaluating the success of the new TLD program

Tuesday, July 28th, 2015

RyanBakerBy Ryan Baker
28 July 2015

I think it’s fair to say that quite a few people – both within the domain name industry and beyond – have an opinion on whether the new TLD program is succeeding or struggling.

But are things really all that bad? Are we forecasting doom before it has really had a chance to run?

Crunching the numbers

Let’s consider the (relatively short) history to this point and take a look at some statistics. In 2012, 1,930 applications were received by ICANN for new TLDs – however accounting for multiple contending string applications, withdrawals and so on, the eventual number of new TLDs to enter the digital ecosystem is likely to be closer to 1,300.

Opponents of the new TLD program are quick to point out the “slow” registration numbers seen across the program; however I’m not so sure this is true when we take a more ‘birds-eye’ view of the wider industry in two important areas – comparative registration volumes and target market awareness.

Registration Volumes

It’s been just 18 months since the introduction of the very first new TLDs to the root zone, over which time we have seen more than 700 TLDs delegated.

In that short time, businesses and individuals in all shapes and sizes across the world have registered over 6.5 million domains.

To put it another way, new TLDs have total registrations equalling nearly 5.5 percent of the incumbent powerhouse TLD, .com in just 18 months.

This alone is an impressive effort, but it may be even more positive if we dig just a little deeper:

• The average new TLD has been delegated for just 11 months.
• 50% of new TLDs have been delegated for 6 months or less.
• 25% of new TLDs have been delegated for 3 months or less.

To summarise, of the 1,300 or so expected new TLDs, only 25% have reached a point where they can realistically sell domain names to their intended target markets (taking into account mandatory name collisions). Yet just this fraction of the expected total of new TLDs have reached 5.5% of the registrations that .com has been able to achieve in more than 30 years.

Furthermore, these figures have occurred without some of the TLDs that are likely to be the most popular (for example .music and .shop), which are still to launch due to the sheer number of people vying for ownership.

Awareness

In addition to the industry-wide registration growth numbers, awareness in the target market continues to grow in a similarly impressive manner.

ARI Registry Services conducted a study in 2011 which highlighted that only 15% of respondents were aware of the increasing options for domain names. When that is compared to the recently conducted ICANN/Neilsen survey which showed 46% of people were aware of the same metric, it’s clear that awareness is growing significantly.

As momentum grows and more TLDs are delegated the awareness level should increase exponentially. This will also be helped in large part by .brand TLDs, many of whom are up and running, with the remainder expected to sign Registry Agreements by the ICANN imposed 29 July deadline.

Vital to end user awareness of new TLDs, we are seeing major global brands transition to usage scenarios with their .brand TLDs (Barclays Bank to www.home.barclays, BNP Paribas to www.mabanque.bnpparibas) and each high-profile launch helps people to become aware of the significant opportunity these TLDs present.

Practicality vs positivity: a balancing act

The highly-competitive, ever-changing environment of the technology sector and the domain name industry in particular mean that new products and developments such as new TLDs are under constant scrutiny.

This isn’t about putting our fingers in our ears and yelling to avoid hearing the criticism. No one is denying that new TLD operators face some challenges and that this is a marathon, not a sprint.

However it’s also important to recognise the achievements and successes that have been reached by the wider industry so far and the positive signs for continued growth that are already emerging.

The new TLD world is dynamic, diverse and full of innovators. Let’s not forget to acknowledge that – and maintain a justifiably optimistic outlook on the changes to come.

Registration numbers not the only success measure for new TLDs

Wednesday, March 19th, 2014

Adrian KinderisBy Adrian Kinderis

Like many, I’ve been watching the rollout of the first 150+ new Top-Level Domains (TLD) with interest.

Since the delegation of شبكة. back in October, we’ve seen all sorts of TLDs launched – from brands like .monash to generics like .build.

There has been intense scrutiny within our industry on the zone file registration numbers of these delegated TLDs to measure whether or not they are successful.

To be fair, this is not a surprise. We’ve been conditioned by past generic TLD launches to focus on registration numbers. Whether it was .mobi, .travel, .info or.co, all previous TLDs have been measured on registration volume – and more worryingly against the benchmark of .com.

Despite being the new TLD program, many in our industry are still persisting with their old TLD ways of thinking.

How will these same people measure the success of .brands and .geos? Remember, it’s a whole new ball game which requires a different way of thinking because the goal posts have moved.

Early numbers mean nothing

The fact that .guru has 40,000 domain name registrations and .graphics only has 4000 means nothing. It’s like comparing apples and oranges.

Outlandish claims like those seen by .CLUB Domains CEO Colin Campbell that .club will overtake .guru in week one are symptomatic of our industry’s naive focus on raw numbers over qualitative results.

Even my own marketing team is guilty of getting caught up in the hype of zone file number reporting. I had to remind them via Twitter recently that there are many ways of determining a top performing new TLD.

The fact of the matter is, raw numbers mean nothing and a focus on use, engagement, purpose and sustainable revenues are far better measures of success.

What is success?

New TLD operators should be judged on their whole-of-business operational performance to take account of stakeholder engagement, customer satisfaction, strategy planning and financial modeling.

Don’t get me wrong, domain name registration numbers matter. It’s just that you can’t determine the success or failure of a new TLD by comparing it to other TLDs. You can only judge a TLD against its intended purpose and strategy.

Think about .brand TLDs for a second. Registration numbers mean nothing and their entire model is based on how their TLD is integrated into the organisation’s digital strategy. Geographics and IDNs also have a very different proposition than traditional generics.

In attempting to measure success, I’d suggest onlookers focus on:

1. Use: Is the namespace being used in a meaningful way and is there evidence of usage and development with the domain names? Are registrants building businesses and content within the namespace?
2. Sustainable revenues: Who is registering domain names and what is the prospect for renewals? Will the TLD retain registrations or do registrants see it as a fad?
3. Trust: Will end users come to trust the namespace and the content hosted within it? Are these registrants helping to establish trust in the namespace?
4. Purpose: What’s the mission and purpose of the namespace (question 18) and are the registration numbers and content living up to these aspirations?
5. Audience: Is the registry operator targeting a clearly defined audience? Is that audience responsive to the product being offered?

Ask yourself, in the first month of general availability for a generic TLD, would you rather have 10,000 parked domain names registered by domainers with little likelihood of long-term renewal, or would you opt for 100 domain name registrations by major global brands in your target audience who use your namespace to host their entire website?

A strategy reliant on defensive registrations and parked domains is doomed to fail – and is completely ignorant of the new market dynamics within the industry.

In any case, it’s still far too early to accurately measure the long-term viability of any new TLD. But a focus away from registration numbers and an emphasis on use and purpose would be more appropriate.

TLDs like شبكة. haven’t even started their marketing and awareness campaigns yet and the impact of name collisions is holding back many operators from fully implementing their strategic plan to deliver their mission and purpose.

Remember, the game has changed and so have the goal posts.

By Adrian Kinderis
CEO, ARI Registry Services