According to brandrepublic.com thousands of companies are preparing to enter a bidding war for online domain names because of fears that the new URLs will start confusion among customers.Next month the company that looks after the naming structure for the web will release guidelines on brands registering to buy their domain names which play a major role when Internet marketing.
Major corporations such as IBM and Hitachi are expected to lead the way into the buying of the domains, which will cost around £113,000 to register a brand domain name in addition to this it will also cost around £15, 000 a year in running subscription costs.
Not all companies are convinced that the domain buying service is relevant with Andrew Morley, vice-president of marketing EMARA at Motorola, saying their brand remains committed to its existing site.
“The chance of consumer confusion is pretty significant. We will probably register for our domain name, but would only look at changing from Motorola.com if the market starts to make moves toward it.”
Ross Taylor, chief digital officer at TMW, agreed that the changes will cause ‘unnecessary confusion’ and could not understand why they were being introduced. ‘Consumers who have grown up with the internet understand using “.com” and “.co.uk”,’ he said.
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