Record domain price signals internet evolution

The right to sell ‘.web’ domain names recently sold for a record US$135m in an auction. This was more than three times the previous record paid at auction for a new top-level domain (TLD), with .shop securing US$41.5m.  

Tony Kirsch, the head of professional services and TLD advisory firm Neustar, said the price tag for .web was evidence that the next evolution of the internet was in full swing.

“This is the strongest indication yet that the evolution of new digital naming is going to change how we navigate the web forever,” Kirsch said.

“When you consider that Google and other global internet leaders like Web.com were all bidders in this auction, you know it’s a big deal.

“The take-home message from all of this is that future generations will now grow up in a world where your digital identity reflects exactly who or what you are, rather than relying on the legacy domain extensions that were the only ones available at the time.”

Kirsch said that in addition to local namespaces such as the popular .melbourne and .sydney domains, the next big shake-up was going to be in the world of branded domains. Companies such as BMW, Canon and the AFL have already launched their own .brand TLDs.

“We are seeing some major organisations with significant consumer influence and marketing muscle recognise the value of digital branding,” he said.

Indeed, in 2014 Amazon bought ‘.buy’ for almost US$5m, and ‘.spot’ for US$2.2 m, while Google paid US$25m for the ‘.app’ web domain in 2015. This followed a decision by the Internet Corporation for Assigned Names and Numbers (ICANN) to expand the overall number of generic TLDs in 2008. Any TLD that receives more than one application and is not privately resolved now goes to auction.

“While it’s still early days, the .web result is just another example of how the internet is changing.

“There is no doubt that exciting times lie ahead for the domain industry and the web as a whole,” said Kirsch.

Image credit: ©iStockphoto.com/Stephan John