Verisign issued a report on new gTLD registrations through June 29, 2014, finding that 41% of all new gTLD registrations are parked and only 3% of New gTLD Domain Names Are resolving to Business Websites.
Of course Verisign operates the .com and .net registries and have a lot to lose in the new gTLD world, yet the numbers are the numbers.
The report entitled Website Usage Analysis in the New gTLDs:
“We thought it would be an interesting exercise to extend similar analysis to the new gTLD market. So, we analyzed all second-level domains registered in new gTLDs according to published zone files on June 29, 2014.
One key finding from our June 29, 2014, analysis is that 3%t of domain names registered in new gTLDs contain business websites.
In this case, we define “business” as a website that shows commercial activity, A recent EURid’s report showed that for the legacy TLDs including .com and .net, 30.5% of domain names on these established gTLDs contained business websites.
Our analysis also found the most common use of domain names in the new gTLD space is Pay-Per-Click (PPC), with roughly 41% of all new gTLD domain names serving up PPC websites.
The prevalence of PPC websites in the new gTLD space can likely be attributed to:
· Heightened speculation in the new gTLD space;
· The practice of several new gTLD registries to register their own domains which are still technically available at premium retail pricing, and several campaigns that provide domains from the new gTLDs at little or no cost to end users (some reportedly without their prior consent), and at least one campaign which automatically creates PPC websites on those provided domain names; and,
Finally, Verisign’s study also found that each of the new gTLDs have a personality of their own with very different usage distributions. Two such examples include:
1. Dot Chinese Online (.在线/.xn—3ds443g) has 91 percent of the registered base serving up “Error” websites. This usage spike likely correlates with their unique distribution model, where they agreed to assign a significant portion of their new names to the Chinese central government. All of the names that are presumably part of that deal fail to return websites when users from the United States attempt to access them. The usage distribution of the remaining top 10 TLDs can be seen in Figure 2.
2. XYZ.COM LLC (.xyz) has a high concentration of PPC websites as a result of a campaign that reportedly automatically registered XYZ domains to domain registrants in other TLDs unless they opted out of receiving the free domain name. After registration, these free names forward to a PPC site unless reconfigured by the end user registrant.