The Argument For IDN’s
Sahar points out an interesting article regarding Japanese advertisements for web sites. The print ads actually show a search box with the web site as the search term.
Search is the most popular form of website navigation in Japan and other non-ASCII domain markets. However, it is not ideal, because at any time the search rules could change and their results may not be the top result for that search. This is why Japanese (and other) companies need to move toward IDN‘s for their domains.
As I commented on Sahar’s blog:
“The companies cannot control their search engine ranking, yet they result to directing to search results because their customers struggle with ASCII domains.
IDN’s are the solution. However they will not take over until JP-Domains or someone relevant goes on a mass IDN marketing tour throughout Japan. Until then, Japan, and the rest of the non-ASCII world will lag in direct site navigation efficiency.”
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Although you posted this over a year ago I am just reading it now and I think you have nailed it on the head. In the intervening time ICAAN has approved IDN for cctld’s and it looks like IDN for gtld’s won’t be far behind. This will allow the entire domain to be in Japanese including the .jp or .com part. I think the advertising increase you are looking for will happen at that time.