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Roland LaPlante - New TLDs: Lessons from the past
1.
SM
New TLDs: lessons from the past Newdomains.org Conference Munich September 26, 2011 Presented by: Roland LaPlante CMO, Senior Vice President, Afilias © Afilias Limited www.afilias.info
2.
New TLDs are
not NEW! • ICANN has hosted 2 new TLD rounds so far: – 2000: “Proof of Concept”; 44 applications; 7 strings awarded • AERO, biz, coop, INFO, museum, name, pro – 2004: “Sponsored gTLDs”; 10 applications; 8 strings awarded • ASIA, cat, jobs, MOBI, post, tel(2), travel, XXX (mail not approved; post has yet to launch) • Non-ICANN TLDS have launched too – eu – ME © Afilias Limited Speaker: Roland LaPlante 2 www.afilias.info
3.
16 launches to
date • aero • me • asia • mobi • biz • museum • cat • name • coop • pro • eu • tel • info • travel • jobs • xxx 16 different business models 16 different teams 16 different investment strategies © Afilias Limited Speaker: Roland LaPlante 3 www.afilias.info
4.
Agenda
• Review the new TLD experience to date • Illustrate some lessons to be learned from this experience © Afilias Limited Speaker: Roland LaPlante 4 www.afilias.info
5.
Afilias supports 16
TLDs today •We support 20M names; •5 new gTLDs; 60% of all new TLD names! •Experienced in ICANN’s new TLD processes Generic & Sponsored TLDs NEW NEW NEW NEW NEW Country Code TLDs NEW © Afilias Limited Speaker: Roland LaPlante www.afilias.info 5
6.
Total TLD market
continues to grow • Total is now nearly 215,000,000 registrations • 248 ccTLDs, 21 gTLDs: extremely competitive © Afilias Limited Speaker: Roland LaPlante 6 www.afilias.info
7.
Growth rate has
been accelerating for 18 months (see red line) • Real growth about 12% (red) • Even with .CN decline, growth is nearly 10% (blue) © Afilias Limited Speaker: Roland LaPlante 7 www.afilias.info
8.
Market Share: COM
@ 45%; cc’s @ 39% • COM and cc’s have returned to historical levels © Afilias Limited Speaker: Roland LaPlante 8 www.afilias.info
9.
ccTLD growth is
steady © Afilias Limited Speaker: Roland LaPlante 9 www.afilias.info
10.
CC growth now
outpacing gTLDs • CN collapse accounts for the dip © Afilias Limited Speaker: Roland LaPlante 10 www.afilias.info
11.
COM/NET remain >
50% of total © Afilias Limited Speaker: Roland LaPlante www.afilias.info 11
12.
After 10 years,
new TLD Volume is about 16M registrations worldwide © Afilias Limited Speaker: Roland LaPlante 12 www.afilias.info
13.
New TLDs are
7.4% of the total market © Afilias Limited Speaker: Roland LaPlante 13 www.afilias.info
14.
Top 4 nTLDs
dominate © Afilias Limited Speaker: Roland LaPlante www.afilias.info 14
15.
Why are the
top 4 on top? • Broad appeal; channel friendly technology and programs; consistent effort Channel programming Regional Identity Consistent effort Growth niche (mobile) © Afilias Limited Speaker: Roland LaPlante 15 www.afilias.info
16.
Bottom 11 nTLDs
show mixed trends © Afilias Limited Speaker: Roland LaPlante www.afilias.info 16
17.
Why the volume
differences-1 • Market need? – Low volume TLDs raise the question – This does NOT mean low volume TLDs are unsuccessful © Afilias Limited Speaker: Roland LaPlante 17 www.afilias.info
18.
Why the volume
differences-2 • First renewal period is the acid test – name/asia/travel off their initial peaks; tel still a ? © Afilias Limited Speaker: Roland LaPlante 18 www.afilias.info
19.
Why the volume
differences-3 • Innovation versus practicality – Name/Pro/Tel: innovative concepts; difficult to execute – Channel appetite for customizing is limited © Afilias Limited Speaker: Roland LaPlante 19 www.afilias.info
20.
nTLDs =10% of
market growth • 16M names out of about 163M names of growth • Are nTLDs driving or riding? © Afilias Limited Speaker: Roland LaPlante 20 www.afilias.info
21.
Afilias supports about
60% of all nTLD registrations today Free INFO!!! © Afilias Limited Speaker: Roland LaPlante www.afilias.info 21
22.
Distribution
• Distribution is critical to TLD success • Registry Operators are REQUIRED to use ICANN accredited registrars – Existing registrars (with existing customer bases) – Be your own registrar (start from scratch) • Distribution is difficult to obtain, so you must know the channel © Afilias Limited Speaker: Roland LaPlante 22 www.afilias.info
23.
New gTLD distribution
trends 6 TLDs 100 - 400 7 TLDs <50 com has over 900 © Afilias Limited Speaker: Roland LaPlante 23 www.afilias.info
24.
Distribution: for volume
(>100) • Early spike, then slower progress © Afilias Limited Speaker: Roland LaPlante 24 www.afilias.info
25.
Distribution: targeted (<50)
• Two apparent models: maintenance and growth © Afilias Limited Speaker: Roland LaPlante 25 www.afilias.info
26.
Distribution lessons
• Must have distribution right at the beginning! – Distribution > awareness > sales > usage > acceptance > SALES – Launch is THE BEST reason to offer your TLD NOW – If launch is slow, momentum will be hard to regain • Channel knowledge is essential – Who to talk to – What to offer and when: registrars are business people • Knowledgeable resources are scarce – Own or outsource? © Afilias Limited Speaker: Roland LaPlante 26 www.afilias.info
27.
Secondary Market should
be tracked • Secondary market is where you will sell premium names (e.g. futbol.sport) • Secondary market is hard to measure – Many private sales – Domain Name Journal is a good overall source of data • Secondary market is dominated by com and net • Secondary market driven by traffic and speculation (but mostly traffic) © Afilias Limited Speaker: Roland LaPlante 27 www.afilias.info
28.
Total Secondary market
about $7-$8M/month • Trending with the overall economy © Afilias Limited Speaker: Roland LaPlante 28 www.afilias.info
29.
Com and Net
dominate • C/N share trending down, but still over 60% © Afilias Limited Speaker: Roland LaPlante 29 www.afilias.info
30.
New TLDs fare
poorly in secondary markets • Share is steady, but low at 4% (low vs 7% of volume) © Afilias Limited Speaker: Roland LaPlante 30 www.afilias.info
31.
Average unit sale
$ is lower for nTLDs than com • Avg sale is $3900 vs $8900 for a com EU/MOBI/ME Launches © Afilias Limited Speaker: Roland LaPlante 31 www.afilias.info
32.
nTLD values reflect
traffic and use © Afilias Limited Speaker: Roland LaPlante 32 www.afilias.info
33.
Avg nTLD sale
is ~ $4K • Share is steady, but low at 4% (low vs 7% of volume) Avg Sale ($) .mobi $7,509 .me $5,234 .asia $4,165 .pro $3,962 .eu $3,732 .travel $3,130 .info $2,968 .biz $2,507 .tel $1,832 .name $1,290 Total $3,928 Thru Jul2011 © Afilias Limited Speaker: Roland LaPlante 33 www.afilias.info
34.
Secondary market lessons
• There is new TLD money to be made in the secondary market – …but not much (total nTLD sales are about $350K/month; avg sale is $4K) – Multiple launches will fragment the market further – There will be exceptions • Premium and Reserve names offer real potential, if they fuel specific uses for specific buyers • Consult an expert – This is a combination of art and science © Afilias Limited Speaker: Roland LaPlante 34 www.afilias.info
35.
Tracking Usage
• Registrant Adoption metric • Internet user Acceptance metric • Usage is a leading indicator of renewal • Afilias tracks various types of usage: – Dedicated: apparent new and unique content • A new entity chooses your TLD for its main address – Monetization/Referral: driven by traffic – Redirects (to main current site, typically .com) – Non-usage (e.g. trademark protection) © Afilias Limited Speaker: Roland LaPlante 35 www.afilias.info
36.
Usage tracking example:
INFO • Industry averages about 66% active; 34% inactive © Afilias Limited Speaker: Roland LaPlante 36 www.afilias.info
37.
Lessons: 1
• Volume / Market learnings – Large volume is difficult to achieve…and takes a long time – Only 4 of 16 launches have achieved over 1M names – 6 are between 100-500K – 6 are well under 100K – …be conservative: heed the history • Adoption takes time – New TLDs are new product introductions – Consumer behavior is difficult to change • Unfamiliarity undermines trust – Remember: unless you have a truly unique and better name, alternatives exist © Afilias Limited Speaker: Roland LaPlante 37 www.afilias.info
38.
Lessons: 2
• Distribution – Distribution is essential to your success – Registrar support is not guaranteed, and ICANN cannot compel registrars to carry your TLD • Need a business case to take to registrars – Each registrar is unique—they have different business models and different strengths and weaknesses • Know how many you need and who to use – Must have distribution right at the beginning! • Distribution > awareness > sales > usage > acceptance > SALES • Launch is THE BEST reason to offer your TLD NOW • If launch is slow, momentum will be hard to regain © Afilias Limited Speaker: Roland LaPlante 38 www.afilias.info
39.
Lessons: 3
• Secondary market – If your plan relies on premium name sales, do two things: • Look at the data • Consult an expert • Usage tracking – Track usage to help assess acceptance and predict renewals © Afilias Limited Speaker: Roland LaPlante 39 www.afilias.info
40.
Lessons: 4
• Other areas: – Policy: • Do it right once: set clear rules and follow them with no exceptions – Eligibility definitions – Verification • Leverage industry experience on what works – Recognize that change from current involves risk • Confusing or inconsistent policies = rejection / lawsuits – System Acceptability (email, forms, etc) • Acceptance of your TLD as legit will be slow • There are still entities who do not accept .INFO addresses! • Need to resource for calling webmasters and CTOs, etc • ICANN is NOT responsible for this © Afilias Limited Speaker: Roland LaPlante 40 www.afilias.info
41.
Data Sources
• ICANN Registry Operator Reports – http://www.icann.org/en/tlds/monthly-reports/ • ICANN Archives for new TLDS – http://www.icann.org/en/tlds/app-index.htm – In resources section of ICANN’s new site • www.Zooknic.com: Volume by TLD over time • Domain Name Journal: secondary market – www.Dnjournal.com • Registrar sales/volume data: www.webhosting.info © Afilias Limited Speaker: Roland LaPlante 41 www.afilias.info
42.
Advice for applicants
• Start NOW! (Jan 12 is tomorrow) • Team up with experienced players – Policy and channel expertise – Technical experts--don’t build your own registry system – Insist on a proven track record with ICANN new TLDs – Be sure your team has ICANN gTLD experience – Find a team that fits with yours • Keep your plan as SIMPLE as possible • Talk to the experts—take advantage of the experience around you © Afilias Limited Speaker: Roland LaPlante www.afilias.info 42
43.
How Afilias can
help YOU • “Registry Services”: Proven, turnkey registry system complete with DNS supporting 16 TLDs today • 10 years of meeting all ICANN technical requirements – Questions 23-44 in the Guidebook – Pre-delegation technical testing • New TLD experience to help you qualify, launch, run your new TLD – 5 ICANN nTLD launches – Technology – Links to registrars – Sunrise/landrush/etc © Afilias Limited Speaker: Roland LaPlante www.afilias.info 43
44.
Free Webinar: Columbia
Business School’s Center on Global Brand Leadership Who Should Invest in a dotBRAND? Evaluating the Business Case for a Top-Level Domain Name October 19, 2011 10:00am-12:00pm (EST) Panelists: William Barrett, Global Communications, Deloitte (dot Deloitte) Karl Isaac, Executive Director, Digital Branding, Landor Roland LaPlante, Chief Marketing Officer, Afilias Paul Twomey, Managing Director, Argo P@cific (former ICANN CEO) Moderator: David Rogers, Executive Director, Columbia Business School’s Center on Global Brand Leadership Diamond Sponsor © Afilias Limited www.afilias.info
45.
SM
The Expert in New TLDs Thank You and Good Luck NEW NEW NEW NEW NEW NEW © Afilias Limited Speaker: Roland LaPlante www.afilias.info