New web domains 'will cost brands without adding marketing benefit' - DMA

Proposals to increase the number of domain names available for internet addresses will burden brands with "huge financial costs without providing any search of marketing benefit", the Direct Marketing Association has claimed.

ICANN, the body which oversees the internet's naming structure, has approved a plan to allow an increase in the number of internet address endings. There are currently 22, with familiar domains including .com, .org and .net.

Applications for the new domain names will open on 12 January next year, with a registration fee costing $185,000.

Chris Combemale, executive director of the DMA, argued that the costs would not be worthwhile for UK businesses.

He said: “Creating a tranche of new internet domain names will be extremely costly to businesses. As well as the associated costs of registering new domain names and spending money to attract customers to multiple domains, businesses face the legal and financial headache of having to contend with cybersquatters grabbing specific domains.

“Customised domain names won’t offer brands any enhanced marketing possibilities because consumers can easily search for specific information with the current domain name system.”

The DMA is now planning to formally ask ICANN to revise or withdraw its new rules.

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