NIC.AT: Austrian companies react to new gTLD program “not very enthusiastic”

Nic.At, the administrator of Austria's .AT national domain, conducted a study on how the introduction of free registration of new top-level domains will affect companies.

Nic.at interviewed 32 domain registrars in the .at zone, 32 advertising agencies, and 220 Austrian non-domain companies.

Attitude
According to Nic.at, in general, companies have embraced the new gTLD program without much enthusiasm. More than 40% of organizations and 18% of advertising agencies are generally unaware that the free registration of new top-level domains has begun, and next year the first domains registered under the new gTLD program will appear.

Those companies that are in the know, as a rule, showed uncertainty. 50% of registrar companies are not sure that they will provide registration services in new zones. 70% of advertising agencies also could not answer with confidence the question whether they will use the new domains in their activities. About a third of the agencies responded that the new gTLD program has nothing to do with their work.

The Impact of New gTLDs

To the question of how the introduction of new gTLDs will affect the Internet, the vast majority of registrars and advertising agencies (94% and 84% respectively) answered that users will still prefer existing domains that are “time-tested”. About a third of respondents said that the new gTLDs will lead to a serious problem - the search for the necessary information on the network will be complicated due to the emergence of many new zones. 30% of registrars and 25% of agencies believe that domain zones do not have any serious influence at all, and only 24% of registrars and 12% of agencies think that users will begin to actively develop new gTLDs.

Registrars and advertising agencies note equally four trends in customer behavior and their relations with them: 1) customers will prefer old domains to new ones 2) they will need domain consultation services 3) companies will register brands as top-level domains 4) will increase domain registrar labor costs.

How Austrian companies choose domain names
The main thing in choosing a domain name for most companies (76%) is the name of the company or legal entity. Also, many choose a domain name by the name of commercial projects (58%) and products (52%). Other popular options are advertising slogans (28%), names of promotions (26%), a suitable generalized concept for the company (21%)

In 37% of organizations, the company's domain name is chosen by management. In 20% of organizations this task is entrusted to the marketing department, in 14% - to IT specialists, in 10% they use the services of other companies to select a domain name.