According to new research out today which asked end users if they would have interest in registering generic new gTLD’s found there is a lot of interest in end users to register domain names in a new gTLD that matches their vertical such as .shop for stores or .law for lawyers.
Commissioned by ARI Registry Services, the new study was led by Dr. David Neal, director of Empirica Research, and aimed to identify whether small and medium sized businesses (SMBs) will buy into the new program.
Dr. Neal said: “Surprisingly, nobody had stopped to ask if restaurant owners would actually buy a domain within .restaurant, or whether lawyers will buy one within .law.”
The survey findings suggest that a high percentage of them will, even if this means paying a premium over their current web address.”
In the survey of 200 SMBs across a range of industries, findings indicated high potential to monetise new Top-Level Domains: • 49% of SMBs describe themselves as likely to register a web address under a new Top-Level Domain related to their business
SMBs are willing to pay substantial premiums to own an industry-specific web address, stating they’d pay 47% more than what they pay annually for their current address
Had the opportunity existed when they were starting their business, 44% of SMBs said they would have bought one at the time.
The study was commission by ARI Registry Services whose CEO Adrian Kinderis, is quoted as saying in the PR out today on the report
“These results are encouraging considering it’s a new concept and awareness is still low among businesses. The findings demonstrate a strong demand in the market for new Top-Level domains.”
SMBs perceived the most significant value in industry-specific web addresses to be the possible advantage within search engines, the ability to better match a domain name to their business and the potential to increase purchases from international consumers.
SMBs also showed interest in Internationalised Domain Names (IDN) which will allow domains in non-Latin languages such as Chinese or Arabic.
54% of SMBs who have customers that do not speak English said they were interested in owning an IDN.
Chinese IDNs were nominated by 90% of SMBs.
Additional research was conducted via in-depth interviews with renowned entrepreneurs, including Jake Winebaum, former President of Disney Online, and Tony Chow, an Asian expert in digital media and creative entrepreneurship.
The study goes on to say
“There are 219,000 retail stores in Australia and 20% of them are likely to register a web address within a .shop new Top-Level Domain. This yields a potential customer base of 43,800 retail stores willing to pay $126.5 AUD per annum – resulting in a total annual revenue of $5.54 million AUD for a .shop new Top-Level Domain – generated from Australian retail stores alone.”
“Adding Singapore and Hong Kong’s retail stores to the business model results in a potential annual revenue in the order of USD $7 million.”
“The research was conducted in September 2011 with 200 small and medium sized businesses based in Singapore, Australia, and Hong Kong. Survey respondents were all owners, CEOs and Managing Directors and represented a broad cross-section of industries.
Empirica Research is an international social and consumer research firm based in Melbourne Australia. Founded by academics, Empirica specialises in applying scientific rigor and the most advanced research methods to business and social research.