Saturday, March 6, 2010

The Importance of Direct Domain Names

All companies want to increase their web traffic. In an article titled “Herding Web Traffic Through Direct Domain Navigation” by Jeremiah Johnston, there is a discussion about the importance of direct domain names for products. Direct domain navigation is defined as “descriptive domain names that are used by online customers to find products, services or information on the internet in one step” (1). This subject matter is growing in importance and deals with a category called electronic commerce, commonly referred to as e-commerce. E-commerce is “The buying and selling of products and services by businesses and consumers over the internet” (2). Johnston’s article cites that “Despite economic troubles, e-commerce continued to gain positive momentum throughout 2009.” More importantly, there is a belief that using a direct domain name strategy will increase a company’s marketing and web traffic. Some companies that have been successful with this strategy include Calvin Klein, H&R Block, as well as Johnson & Johnson. These companies respectively employ the following domain names: www.underwear.com; www.taxcut.com; www.baby.com. It is clear that the domain names relate to the products that these companies sell. Utilizing such common terminology to market a brand increases product exposure.

It is apparent that simple domain names will lead customers to a particular product and company. Personally, I believe a company must be crazy not to implement a direct domain name strategy. The internet is a fast pace environment with numerous amounts of information and consumer traffic. Organizations must learn that this is a great way to channel customers to particular products. For example, Johnston discusses www.vodka.com. The author illustrates a scenario in which a consumer is interested in buying vodka and types in this web address. Now the Russian vodka company that is owns this domain name has captured a consumer in the vodka market.

Even though I believe that direct domain names are beneficial in building a larger customer base, there seems to be a minor problem. Taking a look at Johnston’s vodka example illustrates that there are only so many terms to describe vodka. Also, more than one company cannot use www.vodka.com as its web address. Essentially, there is the issue of multiple companies in the same industry getting a common domain name. But this problem can be mitigated through advertising on television. Johnston discusses examples from the Superbowl. Doritos advertised on television and utilized three creative domain names which interested consumers could visit. Through this example one understands that direct domain names do not need to be common terms such as underwear, taxcut, baby, and vodka. In reality, direct domain names need to be “direct,” meaning they have to get the consumer to the product that is desired.

There is a belief that “businesses have neglected the most effective marketing tool that they have which is the strategic planning of their internet presence” (3). Direct domain names solve this problem. The internet is a potential goldmine. When companies start implementing a direct domain name strategy their profits are sure to rise while their brands grow.

See Article:
Jeremiah Johnston, “Herding Web Traffic Through Direct Domain Navigation,” Ecommerce Times, February 26, 2010, http://www.ecommercetimes.com/story/69430.html (accessed February 28, 2010).

References:
1 Dotcom Agency, Direct Navigation Domain Names, http://www.dotcomagency.com/sitepages/directnav.asp (accessed February 28, 2010).

2 InvestorWords.com, Electronic Commerce, http://www.investorwords.com/1678/electronic_commerce.html (accessed February 28, 2010).

3 Laura Lake, Internet Marketing Strategy: Why Is It Important?, About.com, http://marketing.about.com/cs/internetstrategy/a/aanetmarketinga.htm (accessed February 28, 2010).

5 comments:

  1. I agree with Chris when he says that a company is crazy to not use a direct domain name. If a company uses a domain name that is related to their product or service, it is easier for the customer or client to remember the site and utilize it in the future. However, even if a company has a direct domain name, there are still problems with using the Internet to search for things. These days, if you use .org instead of .com, a person can find themselves at a website that is entirely different from what they were looking for. Although the Internet is "a potential gold-mine" there are still many kinks that need to be worked out and thoroughly investigated.

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  2. I agree with both Janine and Chris that companies need to use direct domain names. I know from personal experience that I many times type the term or item I am trying to search for into the address bar instead of the search box. This leads me to a website if a company has the direct domain I typed in. Companies that are thinking about employing a direct domain strategy should act quickly to avoid the domain being bought by a competitor. Overall I think there are still many marketing avenues on the internet that many companies have not explored, which leaves a large market to capture.

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  3. Employing the use of domain names would most likely increase business by attracting new customers or making it simpler for existing customers. Often customers want to use the internet to order products, however the e-commerce is often daunting to those who are not familiar with the process. Domain names would make e-commerce an easy process for those who are unexperienced and therefore increase profits for the company who owns the domain name, however I fear this use of domain names for certain products may lead to certain companies dominating the industry in which they serve. This may lead to an increase in monopolies and a decrease in competition.

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  4. I think that direct domain names are crucial. Even if people are looking up something online and are directed to a company they didn't know about because they had the direct domain name, consumers may just remain on that website, so I feel that direct domain names create more business for whichever company owns that domain name. I also believe that direct domains will make it simpler for people who are not familiar with the internet or purchasing products online. Shopping on the internet is a prosperous business that is continuing to grow, so making it simpler will only satisfy more customers.

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  5. Direct domain names is a revolutionary concept that is definitely a wise move for any prestigious company who is looking for growth and transformation. I commented on a similar article with regards to the significance of domain names. My article actually explained the implementation of personal top-level domain names. For example, Canon is working towards acquiring .canon as its own top-level domain name. This will allow consumers to simply type "canon" into the URL bar to access their website. Perhaps they should purchase .camera and .slr as top-level domains as well, so that the customers you are talking about will be directed to the Canon website. Again, this is a revolutionary concept that will change the face of e-commerce.

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