Big Branding News on the Internet Domain Name Front

ICANN logoIt was only a matter of time. Internet domain names are now poised to move to a new level of branding sophistication.

This past week, the Internet Corporation for Assigned Names and Numbers (ICANN) decided to broaden domain name suffixes to encompass pretty much anything. Instead of being restricted to suffixes like .com and .net that we’re so used to seeing, beginning in January 2012, companies will be able to apply for the use of any suffix.

At one level, there’s a practical reason for the change in policy. As happened with telephone lines in an earlier era when a host of new FAX numbers and cellphones came onstream, the inventory of available web addresses under the original system of .com, .edu, .gov and .org has been drying up. Recent moves to authorize the use of .biz, .us and .xxx have been merely stopgap measures that have done little to alleviate the pending inventory crunch.

But the latest ICANN move will likely have ripple effects that go well beyond the practical issue of available web addresses. Industry observers anticipate that the new policies will unleash a flurry of branding activity as leading companies apply for the right to use their own brand names as suffixes.

In fact, Peter Dengate Thrush, chairman of ICANN’s board of directors, believes the move will “usher in a new Internet age.”

It’s expected that major consumer brands like Coca Cola and Toyota will be among the first to nab new domain suffixes like .coke or .toyota.

It’s a natural tactic for companies to employ as a defensive step against unscrupulous use of their brand names by other parties. But it’s also an effective way to gain more control over their overall online web presence via the ability to send visitors more directly to various portions of their world in cyberspace.

Of course, we can’t expect these new suffixes to be acquired on the cheap. Gone are the days when someone could purchase an address like “weather.com” for a just few dollars … and then sell it later on for hundreds of thousands.

In fact, it’s being reported by the Los Angeles Times that the cost to secure a new domain will be in the neighborhood of $185,000 – hardly chump change. At that price tag, only well-established organizations will be in a position to apply – and those applications must also be able to show that they have the technical capabilities to keep the domain running. So no cyber-squatters need apply.

Bloomberg Businessweek predicts that leading companies may invest upwards of $500,000 each to secure their brand identities online and to prevent them from being “hijacked” by others. It certainly gives a fresh new meaning to the term “eminent domain”!

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