Internet ad execs conflicted over proposed top-level domain name changes: current system supports limited number of options.

On June 26 in Paris, Internet Corp. for Assigned Names and Numbers, or ICANN, approved expanding Web address extensions, or "top-level domains," to include generic words and names in international scripts.

The existing system only supports Roman characters and 21 top-level domains.

Once ICANN approves a final plan, expected in early 2009, bidding for domains will begin at $100,000.

Local online advertising and marketing professionals are conflicted about whether the expansion will hurt or help clients, themselves and online businesses.

Diluted Market

San Marcos-based Alchemy Design Group is a graphic design and Internet applications developer specializing in marketing emerging businesses. Vice President Ken Wells says more extension options could benefit his startup clients, but will pose a challenge to his own agency.

"Either I have to buy up every single available extension, or some competitive company may purchase it," said Wells. "It may hurt me if someone grabs my business. I see this as a dilution of the market."

Considering the potential firestorm surrounding trademarked brands, those concerned can visit ICANN.org for the latest information.

Although Wells finds the new domains a hindrance, he said local hosting companies are excited to offer it to their clients for additional revenue.

Andreas Roell, chief executive officer and president of San Diego-based online marketing agency Geary Interactive, says strong brand recognition is the driving force behind switching extensions and that large-scale businesses will be the first to benefit.

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For San Diego Gas & Electric Co., ".sdge means someone could type in info. sdge. It's a little bit easier down the road than sdge.com/info. This becomes a more intuitive system for the consumer to work with," said Roell.

According to Roell, umbrella companies like Taylor Made Golf Co. Inc. could put different brands under a single Web extension, and with internationalized domain names, global companies such as Geary Interactive's client WD-40 can purchase domains in local languages.

Creative Opportunities

Miguel Salcido is vice president of operations at Carlsbad-based Internet marketing company, eVisibility Inc., and looks at customized top-level domains as an opportunity to be more creative in branding strategies.

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Salcido says his colleagues propose that all Internet marketing professionals band together to secure ".seo" (search engine optimization) and ".sem" (search engine marketing) through a trade organization such as Search Engine Marketing Professional Organization.

"The ability to set yourself apart from the competition while creating mindshare is a double victory," said Salcido in an e-mail.

For Reid Carr, president of San Diego-based Red Door Interactive, an Internet presence management firm, it's a question of Internet real estate.

"You don't want somebody to 'cyber squat' on your brand," said Carr. "Or even worse, use your brand name and do something bad with it. The advice may be to take ownership of those top-level domains, because it is a painful process through ICANN to try to recover them after the fact."

Red Door Interactive's own Web site is reddoor.biz because reddoor.com was already taken.

Ironically, he said, ".com is still the most valuable real estate. Everything else is moving further and further out--to the mountains and the hills.... We chose to take that next level. We moved to the suburbs, not a beachfront property."