Domain Ruling Poses Paid-Search Threat

By Kemp, Ed

Advertisers’ ability to have multiple ‘top-level’ domains could have disastrous consequences for paid-search advertising, according to industry experts. Following a ruling in Paris last week by industry body kann (Internet Corporation for Assigned Names and Numbers), domain names will be able to include any combination of letters and numbers, rather than being restricted to the relatively small pool of suffixes currently available, such as .gov and.org.

The changes will spark a scramble among brands to purchase suffixes relative to theirbrand name or industry. For example, a brand, such as Nike, could buy the domain name .air.

Hannah Kimuyu, PPC director at search marketing agency Greenlight warned: ‘In order to have more than one ad from a firm showing on Google, you currently need to have multiple domains, so firms use .com, .co. uk, .org etc. The ruling could lead to an infinite number of domains and if these were handed out to affiliates, the potential to limit competition and hike up bid costs could be exponential.’

According to Icann, it will cost firms up to $500,000 to purchase the domains, which go on sale in April 2009 when the first sites go live.

Domain names: rule change could usher In thousands of suffixes

Copyright Haymarket Business Publications Ltd. Jul 2, 2008

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