Sedo’s Report: 80% Of People Say That New gTLDs Are Important

Just found a press release from Sedo that I missed last month. I didn’t find it in any of the other domain blogs so I thought it was worth mentioning.

Sedo did a survey that queried more than 1,150 individuals from the United States, United Kingdom, China and Germany about their perception and awareness of new Top-Level Domains (TLDs). Sedo does not give out any details on how these people were selected.

Data showed that China is much more advanced than the other 3 countries when it comes to awareness of new top-level domains (TLDs), and has a much more positive outlook for their adoption and success.

Here is what I found interesting in this report:

• 80 percent of all people said that New gTLDs are important.
• 63 percent said that their introduction was a good idea.
• Nearly half of U.S. respondents said that domain names in general are “very important” to their business.
• 41 percent of the 1,150 people surveyed were aware that new TLDs had launched, 40 percent unaware and 19 percent who said it sounded familiar but they weren’t sure.
• 54 percent of US respondents were unaware of the new gTLDs and that they have begun to launch. That is significantly higher than the 19 percent total.

BOSTON, Mass. – June 23, 2014 – Sedo, the world’s largest domain marketplace and monetization provider, today announced the findings of a survey that queried more than 1,150 individuals from the United States, United Kingdom, China and Germany about their perception and awareness of new Top-Level Domains (TLDs).  The survey, conducted in May 2014, revealed a number of insights into the global domain name market, including data showing that China is much more advanced than the other countries when it comes to awareness of new top-level domains (TLDs), and has a much more positive outlook for their adoption and success.

In a historic expansion of the Internet’s domain name system, new TLDs started to become available earlier this year, joining traditional extensions such as .com, .net and .org.  New TLDs include extensions that are brand specific such as .Nike or .AOL, those that are geographically rooted such as .NYC and .London, those that are written in non-Latin scripts such as Arabic or Chinese, and those that are truly generic, such as .music, .home or .inc.

Globally, an overwhelming majority of people surveyed showed an understanding of the significance that Internet domain names play in their businesses, with 80 percent saying that they are important.  In addition, the survey showed a positive outlook on new TLDs with a wide majority of respondents (63 percent) saying that introducing them was a good idea. However, the level of importance that people in the U.S. place on domain names is at severe odds with their knowledge and outlook on the market.  Nearly half of U.S. respondents said that domain names are “very important” to their business – a far higher percentage to hold that belief than in other countries, and a surprising statistic given that the survey in its entirety seems to indicate that those in the U.S. know less and care less about domain names.

When it comes to awareness of new TLDs, the survey found that people are becoming increasingly knowledgeable about their introduction.  Compared to a 2013 Sedo survey of Americans in marketing professions, awareness among those in similar roles has increased considerably.  Last year only 25 percent of marketers were aware of the new TLDs, a number that has risen to 40 percent among respondents who identify themselves as US-based marketers in this year’s survey.  This level of awareness is fairly consistent across all respondents, with 41 percent of the 1,150 people surveyed aware that new TLDs have launched, 40 percent unaware and 19 percent who said it sounded familiar but they weren’t sure.

Despite rising awareness in new TLDs, knowledge about fundamental processes for utilizing them is severely lacking. For example, few respondents knew the difference between a new registry’s Sunrise, Landrush or General Availability phases, or were aware that the Trademark Clearinghouse is in place to help protect from infringement on registered marks.

“Most of us use the Internet every day in both our professional and personal lives, so it’s very important to understand the impact and awareness of the significant changes that are being made to how we navigate the web,” said Tobias Flaitz, CEO at Sedo. “With a large portion of people still unaware that new TLDs exist, and others showing a lack of understanding of how to utilize them, it’s clear that organizations within the domain community must continue to invest in educating businesses and the general public.”

While there were many similarities across the countries surveyed, there were also stark differences.  Key themes from the survey data per country are highlighted below.

U.S. Key Themes

• A majority of respondents (54 percent) were unaware of the new gTLDs and that they have begun to launch.  This is a far greater lack of awareness than any other country surveyed.
• Marketers in the U.S. appear to be more skeptical about the launch of new TLDs than any other group. Among marketers in the U.S., 75 percent of them said that the new TLDs would make the internet more confusing, a belief held by only 50 percent of total U.S. respondents and 43 percent of all respondents globally.
• U.S. marketers have a more negative outlook than they did a year ago, when 62 percent said that the new TLDs would make the Internet more confusing.  This, in addition to much more positive opinions from their peers in other countries suggests that recent campaigns against the new TLDs from organizations such as Verisign and the Association of National Advertisers have been successful influencing opinions.

U.K. Key Themes

• Awareness about new TLDs was similar to the U.S. levels, but trended slightly higher with 44 percent unaware. This is particularly interesting, as fewer respondents reported having seen a new TLD in use compared to their U.S. counterparts.
• There is still a high level of confusion surrounding the new TLDs, as the vast majority of U.K. respondents (95 percent) do not understand the difference between the Sunrise, Landrush and General Availability phases of a new TLD.
• Respondents cited the ability to better describe the content of a site and branding as the main advantages of the new TLDs. Confusion and awareness were named as the top problems facing the TLDs.
• The number of respondents saying that the introduction of new TLDs will make the Internet more confusing (44 percent) was similar to levels reported in the U.S., However, significantly fewer marketers in the U.K. felt that new TLDs would make the Internet more confusing compared to their U.S. counterparts.
• There was little awareness of the Trademark Clearinghouse among U.K. respondents.

Germany Key Themes

• Awareness of new TLDs is incredibly high, especially compared to the American market.  Only 29 percent of Germans surveyed are unaware of the new TLDs.
• A majority of Germans (55 percent) think that introducing new TLDs was a good idea, however German respondents, especially those who run or manage small businesses, still doubt the effectiveness and value of TLDs with 38 percent of SMB owners saying there is no advantage to TLDs – the highest response rate for the question.
• Confusion is still a major hurdle to overcome, as almost half of total respondents said TLDs will make the internet more confusing, and the majority also felt that confusion is the biggest problem facing the introduction of new TLDs.

China Key Themes

• The majority of Chinese respondents have a positive outlook on the new TLDs saying that they believe new TLDs are a good idea (86 percent), they expect them to make the Internet less confusing (62 percent), and that they will eventually have a positive impact on the way search engines present results (72 percent).
• Awareness of new TLDs is incredibly high, with very few respondents (4 percent) unaware that the new TLDs have begun to launch. Most (72 percent) even reported that they have seen a new TLD in use. Despite these facts, Chinese respondents also said that the biggest problem facing the new TLDs is awareness that they’re available.
• Chinese respondents were very open to the new TLDs, with most reporting that they have purchased (20 percent), considered purchasing (46 percent) or would consider purchasing a new TLD after receiving more information (25 percent). Three quarters of respondents reported that their company had already discussed or planned on discussing the use of new TLDs in an advertising campaign.
• Unlike the other countries surveyed, a large percentage of the Chinese general population (61 percent) reported that they understand the difference between the Sunrise, Landrush and General Availability phases of a new TLD.
• Trademarks were a significant issue for Chinese respondents, with one in four saying they or their company have had to contest a website address that infringed on a trademark or copyright. A solid majority (66 percent) were also aware of the Trademark Clearinghouse, with many reporting they they’ve used it to register a mark.
• The high levels of awareness and acceptance of new TLDs in China is most likely an indication that there was a market need and subsequent excitement for Internationalized Domain Names (IDNs), which for the first time enable native speakers of Chinese and other languages to use domain names in their native script.

For a copy of the “International TLD Awareness Report,” detailing the full results of the research, please follow this link .

For more information on gTLDs and Sedo’s past research, please visit: http://sedo.com/us/new-gtlds/new-gtlds-for-buyers/.

About Sedo
Sedo an acronym for “Search Engine for Domain Offers,” is the leading domain marketplace and monetization provider. Headquartered in Cologne, Germany and with offices in London, England and Boston, USA, Sedo has assembled the world’s largest database of domain names for sale with more than 18 million listings. The success of Sedo’s model has attracted a client base of more than 2 million domain professionals in 180 countries worldwide. The company’s support team speaks 23 languages natively while its award-winning interactive marketplace seamlessly services client needs in six different languages. Sedo also has a full suite of services available for new gTLD applicants, including premium auctions in all application phases, marketing support, pricing, consulting and brokerage services to reach domain buyers globally. With more than 13 years of experience, Sedo is trusted by organizations and individuals around the globe as neutral partner for buying, selling and parking domains.