Expansion of web addresses an opportunity for local businesses

The impact of the addition of hundreds of new top-level domains (TLDs), the concluding part of an Internet address that follows the dot and informs you what sort of site you are visiting - such as .co.za, .com or .org. - needs to be carefully considered by businesses before the scheduled roll-out begins in 18 - 24 months.

This is according to John Ginsberg, marketing director of Ensight, a leading international multi-channel marketing company, who says that where previously tens of TLDs existed, now there will be literally thousands. "For example, consumers may now get confused between brand.com and brand.app, or brand.retail. There will also be a lot of learning curves as local consumers already struggle to differentiate between country-specific domains (brand.co.za, brand.co.uk) and their dot-com counterparts (brand.com, brand.net)."

Finding reputable sources

Ginsberg says that South African consumers will turn to search engines and social media to help them work out which is the most reputable source. "Companies like Google, Facebook and Twitter are going to score the most from this change, as anything that makes Internet addresses more baffling will drive people to type information into a search box."

According to reports, companies such as Google have been the busiest, applying for over 100 generic top-level domains (gTLDs), among others, .google, .youtube, .baby, .love, .android and .buy. The search giant has also requested .music, which has been claimed by seven other organisations including the online retailer Amazon.

From a business perspective, Ginsberg says the expansion of the global web address regime will be a benefit to certain local brands who want to own a TLD rather than be stuck with a country-specific option. Every business and brand can be represented at a global level, based on their type of business or product offered.

Global business mindset is needed

However, he says that a very interesting and perhaps telling statistic is that, to date, only 17 applications for TLDs have came from the whole of the African continent, compared with thousands applied for by other countries. "For South African brands, the question arises whether they would consider securing a .africa domain, and would it be a defensive play only or part of an active strategy?"

He adds that in the Internet age, all businesses should have a global business mindset and local marketers should not ignore the impending introduction of TLDs. "From a brand-building perspective, there are clearly opportunities to be realised, but local business decision-makers need to firstly ascertain the impact of TLDs on their clients and then develop a suitable strategy to limit any potential market confusion," concludes Ginsberg.