What the coming explosion of internet real estate means for Hong Kong businesses

With over 250 million domain names registered globally, the world wide web has become a congested place since the first web page went online in the summer of 1991. In Hong Kong alone, there are almost 12 million active devices online (getting on for two per resident), while the figure globally stands at 3.5 billion.

If that sounds crowded, the internet is set to get a whole lot busier throughout 2014 as it undergoes a massive expansion in online real estate.

Any Hong Kong business person or entrepreneur who has looked into registering an internet domain will know how difficult it can be these days to find a name that isn’t already taken. In recognition of this, the Internet Corporation for Assigned Names and Numbers (ICANN – the not-for-profit organization which oversees and coordinates global internet addresses) is extending the number of top level web domains (.com, .net, .asia etc,) from just around 20 currently to over 1,400.

The new domains include the likes of ‘.now’, ‘.technology’ and ‘.wiki’. Registrations for the first batches have opened.

New web domains in Chinese script, such as ‘.世界’ (meaning ‘dot world’) along with Russian and Arabic, are also being released as part of the internet’s expansion.

While lots of businesses and organisations will appreciate the opportunity to claim a more representative or memorable online identity, this huge expansion also means that brands need to consider how to protect their web presence and assets.

In the ‘wild west’ days of the early internet before global policies became established, cyber-squatting – where imposters took possession of trademarked names online before the owners had got round to it – was a frequently reported phenomenon. This is less of a concern these days.

Building on the successful launch of ‘.asia’ back in 2007 which pioneered the phased, orderly launches of new domains, ICANN has set up a global trademark clearing house where organisations can register their trademarks. When a new domain becomes available, owners of verified trademarks can stake their claim before the names are made available to the general public.

With the scale of the change however, organisations may be looking for additional support in keeping track of brand properties across more than 1,000 new domains. Third-party tools also exist to support brands in monitoring, blocking and registering new domains as they become available along with helping them to exercise the appropriate procedures in the event of a violation.

The impending release of new domains however should not simply be viewed from a defensive standpoint. The growth of internet real estate also presents new opportunities for companies.

Progressive companies are already working on plans to use the availability of new domains to build their brands, enhance their presence and create new revenue streams online. Firms that capitalise on these opportunities will be able to build trust with their customers and improve their rankings in search engines; their web addresses will be more easily remembered by target customers; and they will be able to tailor their services and products for specific audience segments.

It will also herald the onset of a wave of creativity in digital marketing as smart teams and agencies experiment with the possibilities brought about by a more expansive internet.

Over the last twenty years, the internet has been a powerful force for economic growth. In opening up even more opportunity online, the next evolution of the dotted web wide world will help to ensure growth with diversity beyond the good old ‘.com’.