Mish's Global Economic Trend Analysis

---

• New York Times Asks Obama to Prosecute Cheney; Outsourced Torture
• Chinese Banks Hemorrhaging Deposits, 1st Quarterly Drop Since 1999; Banks Offer iPhones, Even Cars for Large Deposits
• Spain to Suspend Evictions, Rewrite Bankruptcy Law Making Mortgage Debt Dischargeable
• North Korea Threatens White House, Labels US a "Cesspool of Terrorism"; Sony Ponders YouTube Release of "The Interview"

New York Times Asks Obama to Prosecute Cheney; Outsourced Torture Posted: 22 Dec 2014 08:13 PM PST As horrific as the CIA torture revelations were, please understand that most of the investigation is still classified. I have to wonder, what's in the report we did not see. Although I commend senator Dianne Feinstein for making sure excerpts of the CIA torture report saw the light of day, her efforts did not go far enough. Feinstein should have published the entire document. I suspect that would have ended the controversy once and for all. Instead we have nothing but a pack of lies about the use of the intelligence gathered from the likes of Dick Cheney. Outsourced Terror Even had Feinstein published the entire report, please understand there are hundreds if not thousands of horrific stories of CIA-sponsored torture that aren't in the Senate report. The Salon has details in its report on Outsourced Terror. The executive summary released last week makes only passing reference to an integral component of the CIA program: the "extraordinary rendition" of prisoners to foreign custody for "interrogation" by those countries' intelligence services—with the full knowledge that the men would be tortured. Because rendition was beyond the report's scope, there's still no official account of the hundreds, perhaps thousands, of other victims of torture that the CIA is responsible for. As the Washington Post revealed in 2005, the CIA identified two categories of prisoners for detention and interrogation: "high value" detainees that the agency held onto and "second tier" ones who were farmed out for detention and interrogation to other governments. As former CIA officer Bob Baer explained in disturbing detail, "If you want a serious interrogation, you send a prisoner to Jordan. If you want them to be tortured, you send them to Syria. If you want someone to disappear—never to see them again—you send them to Egypt." Mistakes Irrelevant Of course, torturing or even killing the wrong guys does not matter to Dick Cheney. He had the gall to say "I'd do it again". New York Times Asks Obama to Prosecute Cheney At long last, someone besides a few bloggers like myself has taken the right stand. I am pleased to announce the New York Times editorial board has come out with the correct assessment. Here's the headline: Prosecute Torturers and Their Bosses. Mr. Obama has said multiple times that "we need to look forward as opposed to looking backwards," as though the two were incompatible. They are not. The nation cannot move forward in any meaningful way without coming to terms, legally and morally, with the abhorrent acts that were authorized, given a false patina of legality, and committed by American men and women from the highest levels of government on down. Americans have known about many of these acts for years, but the 524-page executive summary of the Senate Intelligence Committee's report erases any lingering doubt about their depravity and illegality: In addition to new revelations of sadistic tactics like "rectal feeding," scores of detainees were waterboarded, hung by their wrists, confined in coffins, sleep-deprived, threatened with death or brutally beaten. In November 2002, one detainee who was chained to a concrete floor died of "suspected hypothermia." These are, simply, crimes. They are prohibited by federal law, which defines torture as the intentional infliction of "severe physical or mental pain or suffering." They are also banned by the Convention Against Torture, the international treaty that the United States ratified in 1994 and that requires prosecution of any acts of torture. So it is no wonder that today's blinkered apologists are desperate to call these acts anything but torture, which they clearly were. As the report reveals, these claims fail for a simple reason: C.I.A. officials admitted at the time that what they intended to do was illegal. But any credible investigation should include former Vice President Dick Cheney; Mr. Cheney's chief of staff, David Addington; the former C.I.A. director George Tenet; and John Yoo and Jay Bybee, the Office of Legal Counsel lawyers who drafted what became known as the torture memos. There are many more names that could be considered, including Jose Rodriguez Jr., the C.I.A. official who ordered the destruction of the videotapes; the psychologists who devised the torture regimen; and the C.I.A. employees who carried out that regimen. Starting a criminal investigation is not about payback; it is about ensuring that this never happens again and regaining the moral credibility to rebuke torture by other governments. Because of the Senate's report, we now know the distance officials in the executive branch went to rationalize, and conceal, the crimes they wanted to commit. The question is whether the nation will stand by and allow the perpetrators of torture to have perpetual immunity for their actions. Moving Forward As I have noted before, "moving forward" to Obama means sweeping this all under the rug. I want every bit of this out in the open, preferably in front of an international war crimes tribunal. At the very least the US attorney general is obligated himself to bring criminal charges. I am pleased to be at the forefront of this issue from the beginning, years ago actually, as pertains to Cheney, Rumsfeld, and Bush. Here's my Top 5 prosecution list. Top Five War Crimes Candidates Former Vice President Dick Cheney Former President George Bush Former Defense Secretary Donald Rumsfeld Former CIA director George Tenet President Barack Obama - for drone policy Number 5 sure is not going to happen, but I will take any prosecutions we can get. For further reading, please see New Poll Shows US Citizens in Every Demographic Support Torture (Republicans, Democrats, White, Black, Young, Old) Napoleon vs. Cheney: "Interrogation That Actually Works"; Icing on the "Hate-Cake" By all means, let's move forward, complete with the knowledge that "moving forward" means sending Cheney to prison for the rest of his pathetic, disgusting life. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com  Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

Chinese Banks Hemorrhaging Deposits, 1st Quarterly Drop Since 1999; Banks Offer iPhones, Even Cars for Large Deposits Posted: 22 Dec 2014 04:00 PM PST Chinese banks have experienced an outflow of deposits for the quarter for first time since 1999. Customers are attracted to trust funds and the stock market which has been on a tear, up 43% in the last six months. In the first week of December, Chinese investors opened almost 600,000 stock-trading accounts, a 62 percent increase over the previous week, according to China Securities Depository and Clearing Co. To compete for funds, Chinese banks offer anything from fresh vegetables for small deposits to a Mercedes A180 for deposits big enough and long enough. The effective yield on the Mercedes is approximately seven percent! China Daily explains the setup in Lenders Look to Attract Deposits with Goodies. Lenders in China, desperate to attract customers who are finding alternatives for their savings, are turning to giveaways. On offer at one branch in Beijing: An iPhone 6 Plus or a Mercedes-Benz. Cash rebates, trips abroad, interest rates at the highest premium ever over the official benchmark rate, even free vegetables are among other goodies banks are dangling to get Chinese savers to deposit their yuan in savings accounts. "Chinese banks are hemorrhaging their deposits," says Rainy Yuan, a Shanghai-based analyst at brokerage Masterlink Securities Corp. "There is no fix for this. All the efforts they made to win savers back will only push up the costs, so it's a losing battle to fight." Higher returns from Internet funds and investment products such as trusts, combined with the promise of a soaring stock market, have China's banks feeling the drain. They lost 950 billion yuan ($153 billion) of deposits in the three months through September, the first quarterly drop since 1999. In the first 11 months, new deposits were 23 percent lower than in the same period last year, People's Bank of China data show. The iPhone promotion, by Shenzhen-based Ping An Bank Co in October at a branch in Beijing, offered a 128-gigabyte iPhone 6 Plus in lieu of interest payments for depositing 38,000 yuan for five years. For parking 903,000 yuan for the same period, savers could pick one of four Mercedes-Benz models. A Mercedes A180, which costs 252,000 yuan, would give investors the equivalent of an annualized return of almost 7 percent, compared with the benchmark rate of 4 percent on five-year deposits. The China Banking Regulatory Commission in September banned what it called "illicit" deposit-gathering practices, including gifts and rebates on deposits. Banks that flout the curbs could face punishment, the regulator said, without clarifying whether product giveaways in lieu of interest payments qualify as gifts. Loan Financing Scheme Will Implode Think Chinese banks can lend money at rates that exceed 7 percent safely? I don't, and if not, this scheme of attracting depositors will backfire big time. How big this deposit-chasing scheme gets is anyone's guess, but the root cause is systemic speculation fueled by central banks' loose monetary policies that manifest in different forms in different places. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

Spain to Suspend Evictions, Rewrite Bankruptcy Law Making Mortgage Debt Dischargeable Posted: 22 Dec 2014 12:41 PM PST Under a new set of family insolvency laws in Spain, those who have stopped paying their mortgage will be shielded from eviction from their homes. Via translation from El Confidential, please consider Changing the Bankruptcy Law. A bill in Parliament proposes new regulations on family insolvencies and will protect from eviction all those individuals who have suspended mortgage payments. The reform centers around rights of the 'consumer debtor' which will have full legal guarantees to negotiate funding agreements with creditors for half of the accrued liability and take up to fifteen years to pay. The measure is justified by the massive overhang of family suffering in Spain, currently condemning many to full settlement and consequent total ruin of those who go through a bankruptcy process. Currently, citizens drowned by their financial situation are usually first evicted from their homes and then have to drag existing debt perpetually throughout their working and social life. The key amendment is on the table prior work involves a negotiation process that empowers the consumer to inform the Court their willingness to reach an agreement with its creditors. The deadline to apply this voluntary refinancing process is two months from the date it becomes impossible for someone to meet payment obligations. The mere communication to the court of the start of negotiations suspends any eviction proceedings,  including those declaratory judgments that may already be in process. The law also amends substantial aspects of the settlement process in cases where a person fails to reach an agreement with creditors. The liquidation plan will take into consideration assets of 'consumer debtor' while prioritizing the essential livelihood of the affected person. The bill has an aim of preserving basic necessities and will also guarantee a 'fresh start' or second chance for people doomed to a dramatic insolvency. To that end, and in the worst case, the court may totally wipe out all existing debts including that portion not covered by asset liquidation.  This is a radical change from the current procedural process. Issues and Questions How many will stop paying their mortgage simply to start a negotiation process? How much harder will it be for someone to get a mortgage? Lots of bad debt on the books of banks will have to be realized. How much more capital will Spanish banks need as a result? There is no way for Spanish banks to pretend debts will be paid once they are discharged in bankruptcy. This story is going to be interesting to watch from numerous angles. Addendum: Reader Bran who lives in Spain provides a more precise translation of the article. Bran writes .... The reform is articulated from (around) the definition of the so called 'consumer debtor' who will be given full legal rights to suggest financial agreements to his creditors with haircuts of up to half of accumulated debt (liability) and delays of up to 15 years. The debtor will be able to ask the courts to oversee the delinquency proceedings, both of consumer debt and mortgage debt. The judge will be responsible for deciding if the debtors offer (which must be at least 50% of what is owed) is acceptable. Mortgage debt would not be directly actable but would have to follow the judges oversight in a liquidation procedure that includes all other debt , and that would be designed to help ensure the debtor maintains essential possessions. From the article it is hard to say exactly how the interpretations of the judge, and so forth would work in practice. What it does do is to delay foreclosure and provide judicial oversight and allow intervention in favor of the debtor. What is more, after any liquidation proceedings are finished (i.e. in bankruptcy) then any unpaid debt will be written off and the debtor may not be pursued for that debt after the proceedings. Creditors may reject offers by the debtor and the debtor may appeal decisions, but the main point is that is not clear how a judge would rule when it came down to evicting the debtor. All the best, Bran. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

North Korea Threatens White House, Labels US a "Cesspool of Terrorism"; Sony Ponders YouTube Release of "The Interview" Posted: 22 Dec 2014 03:03 AM PST North Korean leader Kim Jong-un is an incredible blowhard, but no credible threat to anyone outside North Korea. He just wants attention. And he's going to get it following his Threat to target White House after Obama Claims North Korea Behind Sony Hacking. President Barack Obama is "recklessly" spreading rumours of a Pyongyang-orchestrated cyberattack of Sony Pictures, North Korea says, as it warns of strikes against the White House, Pentagon and "the whole US mainland, that cesspool of terrorism". A long statement from the powerful National Defense Commission late Sunday underscores Pyongyang's sensitivity at a movie whose plot focuses on the assassination of its leader Kim Jong-un. "Our toughest counteraction will be boldly taken against the White House, the Pentagon and the whole US mainland, the cesspool of terrorism, by far surpassing the 'symmetric counteraction' declared by Obama," said the commission's policy department in a statement carried by the official Korean Central News Agency. US May Put North Korea Back on State Terror List I never thought that I would agree with Kim Jong on anything significant, but his labeling the US a cesspool of terrorism seems an accurate description of US drone policy. In response to his idle threats, US May Put North Korea Back on State Terror List. The United States may classify North Korea a state sponsor of terrorism after its "cybervandalism" of Sony Pictures, President Barack Obama has said. The president said the hack on the Hollywood studio was not an act of war but was "very costly", and could land Pyongyang back on the administration's terror list, a designation lifted by the Bush administration in 2008 during nuclear talks. "We're going to review those [issues] through a process that's already in place," he told CNN in an interview broadcast on Sunday. "I'll wait to review what the findings are." 'The Interview' In case you are not in tune with what's happening, Sony was about to release a film called "The Interview". The film stars Rogen and James Franco as journalists instructed to assassinate North Korean leader Kim Jong-un (played by Randall Park) after booking an interview with him. Sony Hacked Prior to release of the film, Sony was Hacked and threatened. A message from the Guardians of Peace, the hacker group that breached the computer systems of Sony Pictures and warned against releasing the film, said "we want everything related to the movie, including its trailers, as well as its full version down from any website hosting them immediately." The hackers promised that if Sony scrubbed all traces of the comedy from the Internet — an impossible task — they would cease a campaign that has lasted almost a month and has threatened employees and their families, embarrassed executives and potentially unleashed 100 terabytes of private company data into the world. A few hours later, President Obama added his voice to the chorus of critics, including irate Hollywood actors, who say Sony and the nation's theater operators should not have canceled the release. "We cannot have a society in which some dictator someplace can start imposing censorship here in the United States," he said. Obama Says Sony Made Mistake by Pulling 'The Interview' In a press conference, President Obama claimed Sony Made Mistake by Pulling 'The Interview'. I agree with the president that pulling the movie is giving into the demands of fools. But it was not really Sony that pulled the plug. Actor George Clooney, in an interview yesterday with Deadline, noted that Sony didn't want to cancel its film, but had no choice once movie theaters started canceling screenings. "Sony didn't pull the movie because they were scared; they pulled the movie because all the theaters said they were not going to run it," he said. "And they said they were not going to run it because they talked to their lawyers and those lawyers said if somebody dies in one of these, then you're going to be responsible." Sony CEO Michael Lynton denied that his company had "caved" under the threat. In an interview with the Hollywood Reporter this morning, he said, "The movie theaters came to us one by one over the course of a very short time. We were very surprised by it…. At that point in time we had no alternative to not proceed with a theatrical release on the 25th of December….We have not caved. We have not given in. We have persevered." Who Hacked Sony? Wired says Evidence That North Korea Hacked Sony Is Flimsy. Attribution Is Difficult If Not Impossible First off, we have to say that attribution in breaches is difficult. Assertions about who is behind any attack should be treated with a hefty dose of skepticism. Skilled hackers use proxy machines and false IP addresses to cover their tracks or plant false clues inside their malware to throw investigators off their trail. When hackers are identified and apprehended, it's generally because they've made mistakes or because a cohort got arrested and turned informant. Nation-state attacks often can be distinguished by their level of sophistication and modus operandi, but attribution is no less difficult. It's easy for attackers to plant false flags that point to North Korea or another nation as the culprit. And even when an attack appears to be nation-state, it can be difficult to know if the hackers are mercenaries acting alone or with state sponsorship—some hackers work freelance and get paid by a state only when they get access to an important system or useful intelligence; others work directly for a state or military. Then there are hacktivists, who can be confused with state actors because their geopolitical interests and motives jibe with a state's interests. Alternate Theories New York Magazine proposes 4 Alternate Theories while asking What If North Korea Didn't Hack Sony? I read the article and none of the alternate theories had any strong evidence, but neither does the North Korea theory. China Condemns Cyber Attack This morning, Reuters reports China condemns cyberattacks, but says no proof North Korea hacked Sony. China said on Monday it opposed all forms of cyberattacks but there was no proof that North Korea was responsible for the hacking of Sony Pictures, as the United States has said. North Korea has denied it was to blame and has vowed to hit back against any U.S. retaliation, threatening the White House and the Pentagon. The hackers said they were incensed by a Sony comedy about a fictional assassination of North Korean leader Kim Jong Un, which the studio has pulled. YouTube Release Sony's CEO says 'we would still like the public to see this movie'. That seems pretty obvious to me. What other reason is there to make a movie? And given that theaters pulled the plug on the release, Sony considers YouTube a possible distributor for The Interview. My personal viewpoint is the script sounds incredibly boring. I would not watch this thing if it was free. Then again, I do not like movies in general, so I am not the best of judges. I am curious though, how many will want to see this thing simply because of the controversy. Regardless, I won't be in that group. I am also curious about one more thing: How would president Obama and Congress have reacted if the script was an assassination plot on Obama instead of  Kim Jong-un? Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

You are subscribed to email updates from Mish's Global Economic Trend Analysis To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States

Damn Cool Pics

---

• Ukrainians Decorate Their Christmas Trees A Little Differently
• Things You Didn't Know About North Korea
• Inventions That Need To Be Created Right Away

Ukrainians Decorate Their Christmas Trees A Little Differently Posted: 22 Dec 2014 12:03 PM PST Some Ukrainians seem to mix a bit of Halloween when decorating their Christmas trees. They use spiders and webbing as ornaments.

Things You Didn't Know About North Korea Posted: 22 Dec 2014 11:12 AM PST

Inventions That Need To Be Created Right Away Posted: 22 Dec 2014 10:54 AM PST

You are subscribed to email updates from Damn Cool Pictures To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States

International SEO Study: How Searchers Perceive Country Code Top-Level Domains

---

International SEO Study: How Searchers Perceive Country Code Top-Level Domains Posted: 21 Dec 2014 04:15 PM PST Posted by 5le The decision to focus your site on an international audience is a big step and one fraught with complexities. There are, of course, issues to deal with around language and user experience, but in addition there are some big technical choices to make including what domains to use. Any authoritative international SEO guide will elaborate on the differences between the options of subdirectory, subdomain, and country-code top level domain (CCTLD). One of the most common suggestions is for a site to opt to use a ccTLD (e.g. domain.co.uk) as the domain extension. The reasoning behind this is the theory that the ccTLD extension will "hint" to search engines and users exactly who your target audience should be versus the other, less explicit options. For example, a search engine and human user would know, even without clicking into a site, that a site that ends with .co.uk is targeting a user looking for UK content.  We have solid data from Google that a ccTLD does indicate country targeting; however, when it comes to users there is only an assumption that users even notice and make choices based on the ccTLD. However, this is a fairly broad assumption that doesn't address whether a ccTLD is more important than a brand name in the domain or the quality of a website's content. To test this theory, we ran a survey to discover what users really thought. User knowledge of TLDs Even before trying to understand how users related to ccTLDs it is essential to validate the assumption that users even know that general TLDs exist. To establish this fact, we asked respondents to pick which TLD might be the one in use by a non-profit. Close to 100% of respondents correctly identified a TLD ending with .org as the one most likely to be used by a non-profit. Interestingly, only 4% of people in the US stated that they were unsure of the correct TLD compared to 13% of Australians. Predictably, nearly all marketers (98%) chose the .org answer. Another popular TLD is the .edu in use by educational assumptions, and we wanted to understand if users thought that content coming from a .edu domain might be more trustworthy. We asked users if they received an unsolicited email about water quality in their town whether they would place more trust in a sender's email address that ended with .edu or .com. 89% of respondents in the US chose the .edu as more trustworthy, while only 79% said the same in Australia. Quite interestingly, the marketer responses (from the survey posted on Inbound.org were exactly the same as the Australians with 79% declaring the .edu to be more trustworthy. If users can identify a .org as the correct TLD for a non-profit, and a .edu as a TLD that might be more trustworthy, it is likely that users are familiar with the existence of TLDs and how they might be used. The next question to answer is if users are aware of the connection between TLDs and locations. Country relationship awareness Next, we asked respondents to identify the location of a local business using a .ca TLD extension. The majority of respondents across all three surveys correctly chose Canada; and nearly all marketers (92%) got this correct. Oddly, more Australians (67%) correctly identified Canada than Americans (62%). We would have thought Americans should have been more familiar with the TLD of a neighboring country. Additionally, more Americans (23%) fell for the trick answer of California than Australians (15%). Regardless, we were able to conclude that most Internet users are aware of TLDs and that they are tied to a specific country. To really gauge how much users know about TLDs and countries, we asked users to pick the right domain extension for a website in another country. In the US survey, we asked users to pick the correct TLD for an Australian company, and in the Australian survey we used a British company. In each of the questions we gave one correct answer possibility, one almost correct, and two entire wrong choices.For example, we gave .co.uk and .uk as answer choices to Australians. In both the US and Australia, the majority of respondents chose the correct TLD, although Americans seem to have been confused by whether Australia's TLD was .AU (35%) or .com.AU (24%). There is a common practice of using country-code domain extensions as a vanity URL for content that is not geotargeted. For example, .ly is the domain extension for Libya, but it is frequently used on domains that have a word that ends with "ly." Additionally, .me is the domain extension for Montenegro; however, the TLD is used for many purposes other than Montenegro content. We wanted to understand if users noticed this type of TLD usage or if they thought the content might still be related to another country. We asked respondents what might be on a website that ended with .TV which is the TLD for the island nation of Tuvalu and is also a popular TLD for TV show websites. 51% of US respondents thought it might be a TV show and 42% chose the "it could be anything" answer. In Australia, 43% thought the site would be a TV show, and 44% said "it could be anything". One of the answer options was that it could be a website in Tuvalu and interestingly twice as many Australian (9%) chose this option vs US respondents (4.5%). This question was one of the areas where marketers' answers were very different from those in the US and Australia. 77% of marketers chose the TV show option and only 19% said it could be anything. Based on the these three results, it is apparent that users recognize TLDs, know that they are from other countries, and appear to make some judgments around the content based on the TLD. Decision making using TLDs Since users know that TLDs are an important part of a URL that is tied to a country of origin, it is important to understand how the TLD factors into their decision-making processes about whether or not they visit certain websites. We asked users whether they thought medical content on a foreign TLD would be as reliable as similar content found on their local TLD. In the US, only 24% thought the content on the non-local TLD (.co.uk) was less reliable than content on a .com. In Australia, the results were nearly identical to what we saw in the US with only 28% answering that the non-local TLD (.co.uk) was less reliable than the content on a .com.au. Even 24% of marketers answered that the content was less reliable. The remaining respondents chose either that the content equally reliable or they just didn't know. Based on these results, the TLD (at least as long as it was a reputable one) does not seem to impact user trust. Digging into the idea of trust and TLD a bit further, we asked the same reliability question about results on Google.com vs Google.de. In the US, 56% of respondents said that the results on Google.de are equally reliable to those on Google.com, and in Australia, 51% said the same thing when compared to Google.com.au. In the marketer survey, 66% of respondents said the results were equally reliable. The fact that the majority of respondents stated that results are equally reliable should mean that users are more focused on the brand portion of a domain rather than its country extension. CcTLD's impact on ecommerce Making the decision to use a ccTLD on a website can be costly, so it is important to justify this cost with an actual revenue benefit. Therefore the real test of TLD choice is how it impacts revenue. This type of answer is of course hard to gauge in a survey where customers are not actually buying products, but we did want to try to see if there might be a way to measure purchasing decisions. To achieve this result, we compared two different online retailers and asked respondents to choose the establishment that they thought would have the most reliable express shipping. In the US survey, we compared Amazon.co.jp to BestBuy.com. In the Australian survey, we compared Bigw.com.au (a well known online retailer) to Target.com. (Interesting fact: there is a Target in Australia that is not affiliated with Target in the US and their website is target.com.au) The intent of the question was to see if users zeroed in on the recognizable brand name or the domain extension. In the US, while 39% said that both websites would offer reliable shipping, 42% still said that Best Buy would be the better option. Australians may have been confused by the incorrect Target website, since 61% said both websites would have reliable shipping, but 34% chose Big W. Even marketers didn't seem oblivious to domain names with only 34% choosing the equally reliable option, and 49% choosing Best Buy. The data in this question is a bit inconclusive, but we can definitively say that while a large portion of users are blind to domain names, however, when selling online it would be best to use a familiar domain extension. New TLDs Late last year, ICANN (the Internet governing body) announced that they would be releasing dozens of new GTLDs, which opened up a new domain name land grab harkening back to the early days of the Internet. Many of these domain names can be quite expensive, and we wanted to discover whether they even mattered to users. We asked users if, based solely on the domain name, they were more likely to trust an insurance quote from a website ending in .insurance. 62% of Americans, 53% of Australians, and 67% of marketers said they were unlikely to trust the quote based on the domain alone. Based on this result, if you're looking to invest in a new TLD simply to drive more conversions, you should probably do more research first.  A new gTLD is probably not a silver bullet. Methodology For this survey, I collaborated with Sam Mallikarjunan at HubSpot and we decided that the two assumptions we absolutely needed to validate where 1) whether users even notice ccTLDs and 2) if so do they really prefer the TLD of their country. While we received 101 responses from a version of the survey targeted at marketers on an Inbound.org discussion, we primarily used SurveyMonkey Audience, which allowed us to get answers from a statistically significant random selection of people in both the United States and Australia. We created two nearly identical surveys with one targeted to a US-only audience and the other targeted to an Australian-only audience. A proper sample set is essential when conducting any survey that attempts to draw conclusions about people's general behavior and preferences. And in this case, the minimum number of respondents we needed in order to capture a representative example was 350 for the U.S. and 300 for Australia. Additionally, in order for a sample to be valid, the respondents have to be chosen completely at random. SurveyMonkey Audience recruits its 4-million+ members from SurveyMonkey's 40 million annual unique visitors, and members are not paid for their participation. Instead, they are rewarded for taking surveys with charitable donations, made on their behalf by SurveyMonkey. When tested against much larger research projects, Audience data has been exactly in line with larger sample sizes. For example, an Audience survey with just 400 respondents about a new Lay's potato chip flavor had the same results as a wider contest that had 3 million participants. SurveyMonkey's survey research team was also able to use SurveyMonkey Audience to accurately predict election results in both 2012 and 2013. With a US sample size of 458 respondents and an Australian one of 312 all drawn at random, our ccTLD user preferences should reliably mirror the actual reality. Summary There will be many reasons that you may or may not want to use ccTLDs for your website, and a survey alone can never answer whether a ccTLD is the right strategy for any particular site. If you are thinking about making any big decisions about TLDs on your site, you should absolutely conduct some testing or surveying of your own before relying on just the recommendations of those who advise a TLD as the best strategy or the others that tell you it doesn't matter at all. Launching a PPC campaign with a landing page on a ccTLD and measuring CTRs against a control is far cheaper than replicating your entire site on a new TLD. Based on our survey results, here's what you should keep in mind when it comes to whether or not investing your time and money in a ccTLD is worth it: Users are absolutely aware of the TLDs and how they might relate to the contents of a website Users are aware of the connection between TLDs and countries Users do make decisions about websites based on the TLD; however there are no absolutes. Brand and content absolutely matter. As to whether a ccTLD will work for you on your own site, give it a try and report back! Sign up for The Moz Top 10, a semimonthly mailer updating you on the top ten hottest pieces of SEO news, tips, and rad links uncovered by the Moz team. Think of it as your exclusive digest of stuff you don't have time to hunt down but want to read!

You are subscribed to email updates from Moz Blog To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States