Research on Domain Name Market
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1 JPN REGISTRY SERVICES Research on Domain Name Market jpccnso Meeting March 9, 200 Hiro Hotta, JPRS
2 Overview of the Research JPN REGISTRY SERVICES Research on Domain Name Market by BayCurrent Consulting in Q4, 2009 to identify possible growth of existing domain name market possible growth of potential domain name market background relatively low penetration of domain names in Japan ongoing/emerging changes in domain name environment growing ECommerce more diversification of usage new TLDs coming JPRS is granted to present the report 2
3 JPN REGISTRY SERVICES pproaches benchmark analysis clarify gaps between markets in Japan and in other countries analyze whether such gaps are to be reduced study out the possible growth of Japanese market penetration rate analysis analyze market size, annual growth rate, and "# of registrants / # of organizations" for individual business category study out the potential of more penetration for each business category positioning analysis extract key factors for registrants to choose TLDs clarify the positions of JP and other TLDs in Japanese market study out relevant positioning of each TLD 3
4 JPN REGISTRY SERVICES Benchmark nalysis 4
5 JPN REGISTRY SERVICES cctld.eu gtlds (other than.com).com jp Norway New Zealand Belgium Sweden Switzerland Korea Canada ustralia Japan 5 Market Size 58.com 230.de uk Estimated Market size[million USD] Netherlands Italy France UK Germany US
6 nalysis Method JPN REGISTRY SERVICES. Selected benchmark.jp in Japan.com in US,.de in Germany, and.uk in UK 2. randomly pick up sample domain names for each benchmark 3. browse their websites and divide them into 30 categories for resale for advertising products/goods/companies/... for netshopping for searchsite / portalsite for Blog for personal homepage under construction etc. 4. find big differences in usage between ".jp in Japan" and other benchmarks 5. look into the background of differences 6. investigate whether such differences will be narrowed down 6
7 market size [USD/person] JPN REGISTRY SERVICES Existing market Usage of.jp in Japan 80.6% 9.4% 00% 92.0% 4.3% resale business private unclassifiable category リセール resale % 広 advertisement 告 ( 商 品 広 告 会 社 案 内 など) % ネット net shopping 通 販 ドロップシッピング % 検 search 索 ポータル / portal 0.3.0% BBS BBS % サイト site development 構 築 支 援 support % アフィリエイト affiliate % ブログ blog % SNS SNS % CtoCEC(オークションなど) その other 他 CGMs サイト site operation 運 営 支 援 support グループウェア groupware キャンペーンサイト campaign データセンタサービス datacenter URLリンク listing 集 準 under 備 中 construction 閉 鎖 権 cannot 限 チェックによる browse 閲 覧 不 可 ブログ blog BBS その other 他 CGMs 個 personal 人 HP homepage 検 search 索 ポータル / portal SNS SNS グループウェア groupware URLリンク listing 集 準 under 備 中 construction 閉 鎖 権 cannot 限 チェックによる browse 閲 覧 不 可 web under 準 備 construction 中 閉 鎖 不 no 明 websites (web 以 外 ) % 0.% 0.% 0.0% 0.0% 0.0%.9% 4.0% 0.3%.2% 0.5% 0.3% 0.3% 0.% 0.% 0.% 0.4% 0.4% 0.0% 3.0% 9.4% total market size [0 2 USD/person] (%) USD/person] (%) 0.32 [USD/person] market size is measured with the total of domain name registration fee 7
8 JPN REGISTRY SERVICES Big differences between benchmarks.jp in Japan.de in Germany.uk in UK.com in US resale x 35 x 27.2 x 45 advertisement x 2. x.3 x 2.2 net shopping x 2.9 x 3.8 x 4.7 search / portal x 66.3 SNS x 89.5 Blog x 9.7 private CGM x 3.3 personal home page x 32.0 not a significant difference x NN NN times bigger in terms of market size per person 8
9 Possibility of usage expansion JPN REGISTRY SERVICES For each of the following usages with big differences resale advertisement net shopping search / portal SNS Blog private CGM personal home page possibility of (future) usage expansion is studied by investigating whether followings are big hurdles for.jp, through comparison between.jp in Japan and each benchmark channel promotion regulation business custom 9
10 Possibility of usage expansion JPN REGISTRY SERVICES resale advertisement net shopping search / portal SNS Blog private CGM personal home page channel promotion regulation / / / / (chievable) current difference can be narrowed business custom N N N N N N N(onchievable) current difference is hard to be narrowed no big difference exists 0
11 Nonexisting market in Japan JPN REGISTRY SERVICES Service ISPs give domain names to their subscribers by default large number of registrations of.de in Germany some for.uk in UK nalysis no big hurdles for.jp in Japan, compared to.de in Germany possible to be provided by ISPs
12 JPN REGISTRY SERVICES nalysis on the Potential of Domain Names in Each Business Category 2
13 JPN REGISTRY SERVICES nalysis Method. pick up the following 3 figures for business categories from statistical materials such as Japanese government white papers market size ($ per person) annual growth rate number of organizations 2. categorize.jp registrants (by sampling) and identify the number of registrants in each business category 3. calculate "penetration rate" in each business category # of registrants / # of organizations 4. make a table of "potential of domain names" in each business category by checking the combination of market size ($ per person) bigger has more potential annual growth rate bigger has more potential penetration rate smaller has more potential 3
14 nalysis result market size telecommunications C amusement medical education B welfare / caring B wholesale foods & drinks retail professional service JPN REGISTRY SERVICES annual growth B B saturation rate C B C C total C C C C very hopeful hopeful C of small hope 4
15 JPN REGISTRY SERVICES Positioning nalysis Focusing on Domain Name Selection Criteria 5
16 nalysis method JPN REGISTRY SERVICES registrants are categorized into the following segments business (6 combinations) big company / medium company / small company B to B / B to C individual (personal) Interview registrants to identify their criteria in choosing domain names co.jp /.jp /.com /.net categorize the criteria into the reasons below reliability trust familiarity fashionableness regionality popularity price 6
17 JPN REGISTRY SERVICES Price is not important independently of company size or their customers. Positioning of TLDs business 0.0 中 BtoC 価 insensitive 格 を 重 視 しない 大 BtoC to price 中 BtoB 0.5 大 BtoC 中 BtoB 中 BtoB 大 BtoB 中 BtoC 小 BtoC 大 BtoC 小 BtoC 小 BtoB 小 BtoC.0 中 BtoC 大 BtoB 小 BtoB 大 BtoB 大 BtoC 小 BtoC 中 BtoB 大 BtoB 小 BtoB co.jp,.jp and.com/.net markets are disjoint. 中 BtoC 小 BtoB.co.jp.jp.com.net 親 近 感 /ファッション 性 familiarity / fashionableness プライベート.5 信 頼 性 /ステータス reliability / trust 大 big 中 medium 小 small.com market and.net market are overlapped. プライベート individual 2.0 プライベート sensitive to price 価 格 を 重 視 する Individual registrants are more sensitive to the price than business. Both.jp and.com/.net have their own market. 7
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