San Francisco, January, 2008
Numeric Domains – Ready for Prime Time?

Personalized mobility is quickly becoming the norm. The Internet and the cell phone are colliding to satisfy our need to socialize and to gather and share information. In fact, in many parts of the world, new wireless subscribers are significantly out pacing new land line installations. We are gaining greater levels of trust and comfort to do on our cell phones what we normally do on our computers and that includes surfing the net.

It's no secret that we also value small, sleek cell phones and other wireless hand held devices to communicate by voice, texting and instant messaging. However, 'smaller' does impose certain limitations including little dial pad buttons that are packed closely together. And for those of us that can at times be 'thick thumbed', it can be challenging to enter information. That being the case, why not make it easier by entering numbers instead of letters to get to their favorite Web sites? After all, it is a phone!

Most mobile access to the Web is via wireless carrier "walled garden" decks, short codes, text messaging and often lengthy, convoluted sub-domains such as m.domainname.com. There is a simpler, and potentially more powerful, mobile access method that has largely gone unnoticed. Until now.

Numeric Domains 101

On billions of non-qwerty cell phones worldwide, the dial pad numbers 2 through 9 represent letters of the alphabet. The number 2 represents "a," "b" or "c." The 7 represents "p," "q," "r" or "s," etc. Entering a numeric string and adding .com completes the numeric domain.

To access Web sites using your cell phone, open the cell phone browser, enter the URL or the domain name, add the extension and press the 'go' or 'send' button. Not too difficult if it's a short URL, but what if you want to go to site with a longer URL? Multi-tapping buttons to get to the right letters and waiting for the cursor to move to the next position can be time consuming and very frustrating.

Any sequence of numbers can represent multiple words, names or other alpha equivalents. The number sequence 3776 can represent 144 unique alpha combinations (3 = d, e or f) (7 = p, q, r or s) (6 = m, n or o).The numeric sequence 3776, can alphabetically represent "Esso", "ESPN" or 142 other alpha combinations. Part of the attraction of numeric domains lies in the fact that, while each one can represent literally hundreds words and names, only ONE of those names or words can be the numeric equivalent. Once it's gone, it's gone, and in this case, once one person or organization uses it, the other 143 potential users are out of luck.

NB: For those concerned about trademark violations, numbers are not able to be trademarked. Until a numeric domain becomes a web site or is otherwise associated with a specific Web site, it's just that - a string of numbers. Anyone can register numeric domains with full legal rights to hold, sell or to build into a functioning Web site. There are no trademark violations.

Organizations incorporate numeric domains into their overall marketing mix depending on their respective goals and strategies. Numeric domains can be the brand or they can be positioned to help strengthen the brand. The fact that these unique domains are composed of only numbers, it can clearly indicate that the Web site has been specifically formatted for optimum viewing and navigation on cell phones. Some of the world's most popular Web sites use numeric domains as their primary Web sites, including 163.com, 126.com, 888.com and 51.com.

Benefits of Numeric Domains;

  1. Simple input. It's much easier to enter 3776 (.com) - four input clicks - than it is to enter a lengthy sub-domain required to get to the same Web site. The ESPN mobile Web site address is mobileapp.espn.go (.com), requiring thirty-two input clicks.
  2. Numeric-domains reduce input error that leads to frustration and abandonment.
  3. Numeric-domains are hand held device agnostic, wireless carrier agnostic, language and location agnostic. They are equal in the entire global community. You get to the same Web site by entering 3776.com whether you are Beijing, Boston or Bali. Anyone, anywhere on the planet with a wireless enabled browser and network access can access your Web site anytime, day or night.
  4. Numeric domains reduce dependency on expensive "on deck" content often bundled by the wireless carriers. Content providers typically pay dearly to list and sell their content on-deck, yet have little influence over the location or positioning within the deck and they have even less influence regarding the amount of promotion done by the carrier.
  5. Numeric domains allow content providers a direct link to their customers and afford greater influence of the user experience.
  6. Numeric domains enable content providers a method to bypass wireless carriers' expensive billing systems (often 30-60% of sales) and to deliver content direct to their customers with a wide variety of payment options paving the way for content providers to retain a larger slice of the profits.
  7. Numeric domains provide a strong alternative to CSC's - Common short codes, or just short codes. Short codes, primarily used for "text" campaigns - which also pad the coffers of the carriers, are wireless carrier-controlled. They are NOT owned by the companies or individuals that are running and paying for mobile marketing campaigns. Short codes are rented on a monthly basis (starting at $500 per short code, per month for a random 5-6 digit code, and $1,000 per month, per code for specific or custom codes). They can take months to secure and typically are used only for limited campaign durations.

Organizations, companies, entertainers, celebrities etc. that own their numeric domain:

  • can align the numeric domain with their brand; ESPN=3776.com, Money=66639.com, Jenna=53662.com
  • can plan international marketing, sales and promotional campaigns around the numeric domain because numbers are the same throughout most of the world
  • do not have to wait hat-in-hand for wireless carriers to "bless" their short code applications and allow them access to wireless subscribers
  • do not have to pay expensive "rental" fees for short codes that come with implicit texting costs, long lead times and the over site of finicky wireless carriers

Why have numeric domains existed largely under the radar? There are a number of reasons - fear of the unknown, early-adopter reluctance, different hand sets, wireless carriers, systems, regulations, platforms, technologies, lack of promotional efforts and dozens of other factors. Numeric domains will emerge and thrive as the wireless ecosystem evolves. Right now there is still a lot of the wild, wild west euphoria in the market. That euphoria creates the full gamut of huge potential as well as risk and pitfalls.

Every day, more companies and organizations are turning to the wireless Web to reach out to their customers. They are learning the value, ease of use and versatility numeric domains provide. Even though the products and services they offer may vary widely, one truth holds true... ALL of them will require an easy to use mechanism to allow their customers to access their Web sites. From this perspective, numeric domains more than fit the bill.

For more on numeric domains, please visit www.numericdomains.com

About Gerbsman Partners

Gerbsman Partners focuses on maximizing enterprise value for stakeholders and shareholders in under-performing, under-capitalized and under-valued companies and their Intellectual Property. In the past 60 months, Gerbsman Partners has been involved in maximizing value for 38 Technology and Life Science companies and their Intellectual Property and has restructured/terminated over $720 million of real estate executory contracts and equipment lease/sub-debt obligations. Since inception, Gerbsman Partners has been involved in over $2.1 billion of financings, restructurings and M&A transactions.

Gerbsman Partners has offices and strategic alliances in North America, Europe and Israel.

Gerbsman Partners
211 Laurel Grove Avenue, Kentfield, CA 94904
Phone: +1.415.456.0628, Fax: +1.415.459.2278
Email: Steve@GerbsmanPartners.com
Web: www.gerbsmanpartners.com

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