How to choose the best domain name? A Comprehensive Guide to Trust, Branding and Financing

Investment 21 Nov 2024 11:20:22 AM By:DN platform editor
Abstract:

In the digital age, a domain name is not only an online entry point for a brand, it is also an important factor that affects consumer trust and brand credibility.77% of consumers say that their trust decreases when other brands use the

In the digital age, a domain name is not only an online entry point for a brand, it is also an important factor that affects consumer trust and brand credibility.77% of consumers say that their trust decreases when other brands use the same name in different domain extensions. Therefore, choosing the right domain name for your brand is critical. Here are our key findings and recommendations based on data analysis to help businesses optimize their domain name selection.

How to choose the best domain name? A Comprehensive Guide to Trust, Branding and Financing

I. Domain name trust and extension selection

There are more than 1,600 domain name extensions (TLDs) globally, but not all of them are recognized and trusted by consumers. Research shows:

1, .com is the most trusted domain name: 82% of U.S. consumers consider .com more reliable than other extensions.

2、Familiarity with alternative extensions: for example, 51% of consumers are familiar with the .co domain name, while tech industry respondents showed higher familiarity with extensions such as .io (77%) and .ai (89%).

3. country code extensions (ccTLDs): domains that target local markets (such as .co.uk or .de) may be more trustworthy. For example, 78% of UK consumers trust .co.uk over .com. However, .com is still the preferred choice for global markets.

Recommendation: Choose domain extensions based on your target market. For global operations, prioritize .com; if serving a specific country, consider using the corresponding ccTLD.

Factors Affecting Trust: Exact Match and Additional Characters

Consumers prefer to trust simple and intuitive domain names when choosing brands:

1. The Importance of Exact Match Domain Names

77% of consumers believe that it is important to have an exact match between the brand name and domain name, especially younger consumers (1824 years old), 60% believe this is key.

Additional prefixes or suffixes (e.g. getbrand.com or brandapp.com) reduce brand trust for 78% of consumers.

2. Impact of Hyphens and Numbers

35% of consumers say hyphens reduce trust in domain names, and 54% say the same about domain names that contain numbers.

Alternative characters make domain names more difficult to remember and spell, especially affecting younger audiences.

Suggestion: Try to choose a short domain name that exactly matches your brand name and avoid hyphens or numbers.

The Key Role of Domain Names in Financing

Domain name not only affects consumers, but also directly affects the judgment of investors. A strong domain name can enhance the brand image and reduce the long-term risk of investors.

1, the value of a single English word domain name: 73% of investors believe that this type of domain name is critical or has a significant impact on access to capital.

2. Short and easy-to-pronounce domain names: Premium domain names (e.g., intent.com) are more popular and can quickly convey brand value.

Creative and descriptive balance: 66% of investors believe domain names need to be both unique and industry relevant.

Suggestion: If your goal is to raise funds, prioritize short, memorable and descriptive .com domain names.

Strategies for owning multiple domain extensions

Brands registering the same domain name in different extensions not only helps protect the brand image, but also enhances online consistency.

1、Trust Issues: 77% of consumers believe that when different brands use the same name but different extensions (e.g. brand.com vs. brand.net), trust in the brand decreases.

2. Digital Neighbors: By occupying multiple domain extensions (e.g., .com, .co and .org), brands can reduce the risk of cybersquatting by competitors.

Recommendation: If budget allows, consider registering multiple major extensions associated with your brand to protect your brand image.

Conclusion: Domain names are core brand assets

A domain name is not only the digital address of a brand, it is a key factor in building trust, attracting consumers and securing financing. Choosing a domain name that exactly matches your brand name, while prioritizing the use of widely recognized .com extensions, can effectively enhance your brand's online credibility and long-term value.

Source: ATOM

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How to choose the best domain name? A Comprehensive Guide to Trust, Branding and Financing