ICANN gTLD Program Expansion

Presented By

Leslie Edwards

July 2011

Global Strategies 2011. All rights reserved.

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Background
URLs are comprised of three main components:

There are two types of top level domains (TLDs): Generic Top Level Domain (gTLD) o Typically very general designations that most consumers will identify with o Examples include .com, .gov, .info, .edu, and .net Some of these, such as .gov and .edu, are restricted to certain types of organizations and entities Country Code Top Level Domain (ccTLD) o Allows webmasters to better signal to both users and engines that their content is relevant for residents of a specific country. o Examples include .au (Australia), .fr (France), and .de (Germany) o A ccTLD can be combined with a gTLD, such as .com.au or .gov.de TLDs are governed by the non-profit Internet Corporation for Assigned Names and Numbers (ICANN) organization. On June 21, 2011, the ICANN board voted to release new gTLDs as a means of promoting competition 1 within the domain name system while preserving Internet security and stability. This change allows for any organization to apply for the status of becoming a registrar of the TLD of their choosing, whether it be .meals or .GlobalStrategies. The initial application round will be held between January 12, 2012 and April 12, 2012, and each applicant must go through an in-depth process that includes technical, financial, and operational reviews, as well as opportunities for public comments and filed objections.

Application and Objection Specifics

The application process is open to any established public or private corporation, organization, or institution worldwide, not including individuals and sole proprietorships. However, the associated will act as a barrier to many; the application evaluation and evaluation fee is $185,000 per gTLD application. In addition to the application and evaluation fee, any applicant who is awarded a domain will be required to pass technical tests, sign an agreement with ICANN to become a registrar of that gTLD, and pay a yearly fee. The applicant may allow others to use the new gTLD or keep it for use only by their organization. ICANN expects that all newly created gTLDs will be operational and delegated within one year of signing the registry agreement. Although we do not know all of the criteria that will be used for evaluating and awarding new gTLDs, increased competition is one of ICANNs most prominent reasons for their establishment. This indicates that they may limit the award of very generic gTLDs, such as .recipes, to an organization who will open registration for that gTLD to organizations outside their own.

ICANNNewGenericTopLevelDomainsFactSheet,http://www.icann.org/en/topics/newgtlds/factsheetnew gtldprogram14apr11en.pdf

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Inevitably, there will be competition among organizations for a particular gTLD, as well as objections based on content, interpretation, or legal rights. ICANN has allowed for four different avenues of objection: String Confusion: This objection path will apply in the case of two applicants applying for the same or similar gTLDs, such as .menu and .menus, or when an applicant applies for a similar domain to an already existing TLD. If the applicants cannot come to an agreement on their own, 2 they will be subject to an evaluation in which points are awarded across a number of criteria . In the event of a tie, the domain will be awarded to the highest bidder in an auction. Legal Rights: Objections filed under this path assert that an applied for gTLD infringes on existing legal rights, including either registered or unregistered trademarks. Only rights holders may use this particular objection. Limited Public Interest: Under this objection path, the proposed gTLD conflicts with generally accepted legal norms of morality and public order recognized under international law. Community: This objection area allows for substantial opposition from a significant portion of the community to which the gTLD string is applicable, either explicitly or implied. ICANN has appropriated review services from different organizations for governing each particular objection type.

SEO Implications
It remains to be seen just how impactful the new gTLDs will be. Search engines currently treat gTLDs as a signal, rather than as the highest indicator of relevancy for a particular topic or category, and they will continue to look at multiple relevancy factors. A company with cookware products on a .menu domain will not automatically be relevant for queries such as Christmas dinner menu. Rather, they would also need to have content that is specific and a link landscape that is relevant to that query. Currently search engines treat gTLDs as global sites, which do not provide a specific country signal. Search engines will need to become smarter with how they treat gTLDs, as local organizations could purchase and allow content to be published on their TLDs. For example, search engines may start to place local signals on .Japan or ., similar to the ccTLDs that exist today for Japan such as .jp or .co.jp. As part of a distributed domain strategy, the usage of gTLDs could result in increased ownership of the shelf space for a company or organization. For example, if Toyota had unique content about their Prius hybrid car on both Toyota.com and a .Prius domain, a search for Prius hybrid specs or could result in additional rankings on the first page of search results.

Purchase Considerations
Should your brand or organization apply for a new gTLD? The right answer will differ between organizations, and even between business units within an organization. There are considerations to take into account: Financial: The expense of an application goes beyond the initial application and evaluation fee to include indirect personnel costs in preparing the application, filing and arbitration fees should your application come under objection, and ongoing fees as a registrant with ICANN. Company Infrastructure: Your organization may have underlying technical, financial, or operational issues that will hinder approval during the ICANN audit process. Site Infrastructure: Before purchasing additional TLDs, a global enterprise company should ensure they have clear governance and management plans for existing sites, subdomains, and

Communityapplicants,suchasacityapplyingforagTLDoftheircityname,willbegivenpriorityover organizationsduringtheevaluationprocess.

ICANNgTLDProgramExpansion

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ccTLDs, as well as have clean site architecture and properly defined directory structures on current sites. Deployment Strategy: A clear strategy needs to be defined prior to applying for any new gTLD. How will that gTLD be applied against current needs? If you own multiple ccTLDs, will the gTLD need to be deployed in each? Brand Protection: Each organization will need to determine if it is more advantageous to purchase their branded gTLD, or monitor each application round for possible trademark infringements and file a Legal Rights objection if one should arise. Vanity URLs: Branded gTLDs could provide additional vanity URLs that use your company or product name to its fullest advantage, such as drink.coke to link to the Coca-Cola home page, or buy.coke to link to a list of retailers. Brand Awareness: New gTLDs could help boost brand awareness. For example, your company may find that a product name is already being used by another company with a .com gTLD. A branded gTLD would allow you to associate that product with your company.

In addition the above, there are special considerations for certain types of organizations or situations: Lack of Trademark Protection: In critical markets where you do not have a trademark and your brand is exposed, buying a gTLD will remove the risk of another entity capturing your branded name or product. It is important to note that a community applicant, such as a city, will be given a higher weight during the evaluation process in cases where there are two applicants for the same or similar gTLDs. Resellers and Distributor: A company can sponsor a page of content for each of their retailers, helping to capture additional shelf space and providing their authorized retailers or distributors with a strong endorsement. An example of this would be bestbuy.cisco.com. Local Content: For a product with a localized base, utilizing a relevant domain in combination with a new gTLD could provide better targeting, relevancy, and localization all at a shorter URL. Seattle.Groupon would be an example of this.

Conclusion
The number, type, and awardees of new gTLDs remain to be seen, as does the reaction from both internet users and search engines. Enterprise organizations need to evaluate the pros and cons of applying for a new branded and/or unbranded gTLD. Additionally, they should utilize this time to assess the state of their current websites, social media platforms, domain strategy, and digital communications. Addressing issues and optimizing existing assets will help to strengthen relevancy and positioning, regardless of changes resulting from the new gTLDs.

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Additional References
ICANN gTLD FAQ Page: http://www.icann.org/en/topics/new-gtlds/strategy-faq.htm ICANN gTLD Program Page: http://www.icann.org/en/topics/new-gtld-program.htm

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ICANNgTLDProgramExpansion