Registrar Connections - July 2005 - Registrar Connections from VeriSign, Inc.
VeriSign, Inc.® US Home | Worldwide Sites | Site Map

Registrar Connections


July 2005

In This Issue: 

Web Site Usage Update

VeriSign commissions a quarterly study from Cyveillance, an Internet monitoring company, to look at trends in Web Site development and usage.  In the latest quarterly report conducted in May 2005, 76% of all domain names were associated with a Web Site – 62% are live and 14% are associated with a parked page.

With the dramatic growth of new registrations beginning in Q304, VeriSign has been closely watching the Web Site to Domain Name Registration Ratio.  The stability of this ratio, we believe, is tied to a stable renewal rate for .com and .net as well as gives us insight into how domain names are being used.  Parked page percentage increases are a clear indicator of the increase of new registrations.  As these new domain names come up for expiration in Q3 and Q4 2005, we expect some significant changes to occur in the Web Site to Domain Name Registration ratio.  We will keep you updated as we get these reports.

The other interesting item that we have started to watch in relation to the parked pages are the domain names that are PPC-purposed.  We have commissioned a new study from Cyveillance to try to determine which domain names are used for the PPC market and which are simply ‘parked’ in the traditional sense.  We hope to provide you with that analysis in the next issue of the Registrar Connections.

Other data points that are tracked via the Cyveillance quarterly crawl, are the percentage of Web Sites that are eCommerce enabled.  This number floats between 4 and 8% and recently has been on the rise again.  This latest report puts the percentage of ecommerce sites at 5%.  The other data point is the number of pages associated with Web Sites.  For more information about this study please contact namingmarketing@verisign.com.

Back to top

2005 ASCII 1st Time and IDN Renewal Promotion Results

The 2005 Renewal Promotion was a success!  Thanks to the 68 Registrars that participated in the ASCII part of the promotion and the 57 Registrars that participated in the IDN portion. 

The ASCII 1st Time Renewal Rate increased 4% during the March and April performance period to 64%.  The IDN Renewal Rate saw an even larger increase to 65%, a 33% increase vs the same period last year.

Renewal promotion earnings announcements have been going out and dollars will be mailed shortly.  Due to the US law Sarbanes Oxley, VeriSign needs to have a completed and signed W9 tax form from US Registrars and W8 tax form from non-US Registrars in order to disburse payment for any marketing programs.  These documents last for one year so we merely need to have one on file.  The W8 form is to verify that the company we are giving funds to is not a US entity and thusly does not need to pay taxes on the income.  If you have questions regarding the tax forms or the renewal promotion please send an email to namingmarketing@verisign.com.

Back to top

Brasil Marketing and Advertising Test Update

On August 1, 2005, VeriSign will launch the first of its kind advertising campaign for .com.  We will have print advertising in select newspapers and magazines as well as online advertising in the form of banners, search words, and newsletters.  In addition, we will be doing direct mail towards the middle of the campaign.  Guerilla marketing activities and event sponsorships will round out the campaign.

image

Below you can see the print ad that we will be using.  Our tag line is ‘The Global Economy operates at one address - .com’.  This look and feel is present in all our materials.  We will make all the creative available to registrars for your own use, if you choose to use it, in the next couple of months. 

The campaign will run for 3 months as we test the various activities.  There are 6 Registrars that have signed on to participate in this trial program.  We will continue to provide updates as to the effectiveness of this type of campaign as the results come in.  If you have any questions about this program, please send an email to namingmarketing@verisign.com.

Back to top

.tv - The New Face of the Internet

As the Internet continues to evolve from a text-based medium to one of multimedia, companies in all industries are offering video on their websites, and using .tv domain names to market and promote that fact.  The early adopters of the .tv brand were television broadcasters such as Turner Network Television, Viva Television and NBC Los Angeles, who used the domains for the literal meaning of “tv”as television.  However, over the past few years, companies and individuals all over the world have used .tv domain names to identify themselves with a video-based, rich-media experience, regardless of any association with the television industry.  A few good examples are Farm TV; offering streaming video of farm properties and other real estate for sale, H2O TV; offering underwater video and online programs, and CVTV; an online service producing video resumes.  The .tv domain provides different meanings for different users, and all of them relate to one common theme; video and rich media.

Now that broadband access has become commonplace, end-users are spending more time on Web sites seeking out rich content.  Web site and portal owners are using video and rich content in the hopes that users stay on Web sites longer to generate advertising revenue.  The .tv TLD is the address that is home to Web sites that are leading the convergence of the Internet, television and cable through services that put the control of content in the hands of the user/viewer. In addition, the two letter phrase ”tv” means the same thing in every country, in every language.  The registrants understand the importance of these factors and are registering .tv domain names in increasing numbers worldwide.  In addition, they are using them; 70% of .tv domain names are associated with a Web site, which means the .tv registrant is likely to use value added services. 

Registrars can increase their revenues by adding .tv to their purchase flows as well as offering special promotions.  Many registrants may not know about the value of a .tv domain name so Registrars have the opportunity to inform and sell this valuable TLD.  With the Marketing Funds Program for .tv currently running, there is no better time to promote .tv registrations. 
Recent Articles:  
Web sites act more like TV to keep users ‘tuned in’

Back to top

Frequently Asked Questions from VeriSign's award winning 24x7 Customer Service Support Team

The top issues impacting Registrars in the past 30 days:

Please provide me with sample XML commands. 
To access the EPP web tool, click here and you will need your NameStore OT&E login and password. Once in this tool, you will be able to generate XML sample code.

When submitting my EPP commands for Com/Net domains to I need to specify the sub-products, and do I need to specify contacts for the domains I create? 
When submitting EPP commands it is necessary to specify the sub product, and you will not need to specify the contacts on domain creates.

Back to top

Special Report on eCommerce in Western Europe from eMarketer:  The Euros Are Coming!!  The Euros Are Coming!!

Published: July 12, 2005

Online commerce is picking up across Europe — but at different rates in different countries. Internet penetration rates and broadband adoption play important roles, but cultural differences are key factors as well.

France, where broadband uptake has zoomed, is estimated to have registered e-commerce growth of more than 40% last year, with similar gains expected for this year. The UK, a more mature market—and one that has been more open to online purchasing—has passed through a period of hypergrowth but is still logging gains of some 30% a year. Online shopping and purchasing is on the rise even in countries that are seeing deteriorating offline retail sales.

image

"E-commerce should continue to grow at a healthy pace this year and next throughout Western Europe, as more people go online more frequently, and at greater bandwidth," said Jeffrey Grau, senior analyst at eMarketer and author of a new report, Western Europe E-Commerce. "Each passing year will create a larger population of more-experienced Web users, and if the US is a model, experience online leads to purchasing online."

Continued gains in Internet adoption will certainly create a larger pool of potential European Internet shoppers and buyers, but longtime offline purchasing habits in many economies may mean that even mature online markets will not reach the levels projected for the US.

The Western European countries, led by Germany and the UK, have some of the largest Internet user populations in the world. In 2004, the combined Internet populations of Germany, the UK, France, Italy and Spain totaled 131.5 million, compared to 170.1 million in the US. By 2008 the gap will narrow considerably to 174.6 million versus 188.5 million, as Internet users grow at a 7.3% annual rate in Europe as opposed to a 2.6% rate in the US. The fastest growing online countries in Europe are Italy and Spain.

image

There is a three-tier digital divide in Western Europe. The Scandinavian countries and the Netherlands are the most wired societies. Sweden, with three of four individuals online, leads the continent in Internet penetration. Next are the central European countries. Slightly more than one-half of Germans use the Internet. The UK, France and Belgium follow. The least advanced nations in terms of Internet uptake are the southern European countries of Italy and Spain. In 2004, the Internet penetration rate in the European Union was 48%, compared to a US rate of 61%.

image

Germany lags behind its Western European peers in broadband household penetration and broadband annual growth, based on eMarketer's analysis. Overall, broadband uptake in Western European households is high and penetration rates are quickly approaching the US level.

image

Total retail sales growth in Western Europe is weak – fourth quarter consumer spending increased on an annual basis by a modest 1.6% overall among the 25 members of the European Union, according to European Commission data. By comparison, US retail spending for the same period rose by 8.3%. The UK and Spain have had the healthiest retail growth, but even these two economies may be showing signs of weakening. Germany and Italy are experiencing a long, slow slide.

Market size data from the European Information Technology Observatory (EITO) shows the relative growth prospects for the major Western European retail e-commerce markets.

image

In 2004, according to Forrester Research, the UK and Germany combined accounted for over 61% of online sales in Western Europe. When France, Italy and Spain are added to the mix, the total share increased to 76.9%. By 2009, the UK and Germany will represent 49.5% of sales, while all five countries will account for a 76.2% share.

As the US retail e-commerce market matures, many online retailers are beginning to target customers in faster growing foreign markets. "Western Europe and the UK in particular are drawing a lot of interest because of cultural affinities and fewer language barriers," said Mr. Grau

To learn more, read the new eMarketer report, Western Europe E-Commerce.

Back to top

In The News

This section contains a selection of articles pertaining to the Domain Name Industry compiled by Information, Inc.

"July 2005 Web Server Survey" 
Netcraft (07/01/05)

The Internet could reach historic levels in growth this year. The Web Server Survey for July 2005, which drew responses from 67,571,581 sites, reveals that 2.76 million hostnames were added in the month of June, and that there has been 10.7 million new hostnames so far this year. The growth of hostnames is on pace to easily surpass the record increase of 16 million hostnames in 2000, if there is no significant decline over the second half of the year. The 2.76 million hostnames added last month is the second-largest gain on record, trailing only the 3.3 million gain in hostnames in March 2003. Speculation surrounding domain names, as resale prices rise and revenue generating opportunities for parked domains grow, is one of the main reasons for the increase. Opportunities involve pay-per-click advertising and keyword-based contextual ads. Also, more small businesses are turning to the Internet and Weblogs are gaining more of a presence online. 
(http://news.netcraft.com/archives/2005/07/01/july_2005_web_server_survey.html)

"Company Buys Web Addresses Echoing College Names" 
Chronicle of Higher Education (07/08/05) Vol. 51, No. 44, P. A29; Foster, Andrea L.

Burnsville, Minn.-based investment company BDC Capital announced last month that it has purchased more than 1,400 domain names that sound like the names of colleges in top sports conferences as well as 22,000 Web addresses mimicking high-school names. Most of the college names consist of the name of a school combined with a mascot name in the .com namespace. Some of the more recognizable names are harvarduniversitycrimson.com, stanforduniversitycardinals.com, and universityofmichiganwolverines.com, and universityofnotredamefightingirish.com. BDC said it made the purchases in hopes that other businesses selling college-related items, marketing sporting events, or promoting ties to alumni would want to license them. But trademark experts say this declaration of intent could prove costly if impacted schools should take the company to court. By admitting that profit was behind the purchases, the case of "bad faith" cybersquatting can more easily be made. Already, the University of Michigan at Ann Arbor has sent a letter to BDC asking that it stop using the domain names, and Stanford may follow suit. "We believe that both the individual and the aggregate values of these largely undeveloped domain names hold promise as marketing, communications, and outreach vehicles," said BDC CEO Richard Pomije in a previously released statement. 
(http://www.chronicle.com)

"S'Pore Offers Multilingual Domain Names for 6-Month Trial" 
Channel NewsAsia (07/04/05)

Organizations and individuals in Singapore and elsewhere around the globe who want to reach Chinese and Tamil speakers online can sign up for Internet domain names in those languages through the Singapore Network Information Center (SGNIC). The national domain registry, which is considering a commercial roll out of the "internationalized" domain names, has made Chinese and Tamil domain names available to the public starting July 4, 2005, as part of a six-month trial, which will end Jan. 3, 2006. SGNIC will have a better idea of whether the IDNs are in demand as a result of the initiative. The IDNs will have an ".idn.sg" extension. SGNIC, a unit of the Infocomm Development Authority, wants to become a regional infocomm hub and offer a multilingual and multiracial presence online. 
(http://www.channelnewsasia.com/stories/singaporelocalnews/view/156042/1/.html)

© Copyright 2005 Information, Inc.

Back to top




Guides