When it comes to rebranding, simplicity is the key. As a company expands, they will likely feel the need to rebrand for a variety of different reasons.
Rebranding is a powerful tool that can pull a company together, boost exposure, and help launch new products. As company’s grow, they may outgrow their initial brand, restricting the business and its message.
In September last year, Snapchat rebranded their parent company to “Snap” and purchased the domain name Snap.com. – Did Snap pay $5 Million for Snap.com?
As the company “Snap” expands beyond the mobile app space, it becomes crucial that they separate the company from its main product “Snapchat” – Hence the decision to rebrand as “Snap”.
So why was the costly purchase of Snap.com so worth it? Well…It all comes down to “brand” and “marketing”. If your domain name synergizes with your marketing it makes everything whole, and requires no extra effort in the brand message. Purchasing an exact match .com domain for your brand puts you in an elite position which most businesses overlook.
Let’s imagine Snap purchased SnapCorp.com as their main domain. This automatically complicates the marketing of Snap, simply because of the disconnect between the brand and the domain. An immediate thought would be “why don’t they own Snap.com?” rather than whatever the marketing message is trying to convey.
Imagine if you typed in Uber.com and they didn’t own the domain?... It sends the wrong message - part of the reason why Uber gave up 2% of the company to acquire Uber.com.
Rebranding is not to be taken lightly and there have been several instances of a company doing a poor job, or simply rebranding for the wrong reasons. For Snap, it was important to have a clear connection between the new brand and their primary product “Snapchat”. “Snap” did exactly that, and allowed them expand their horizon while staying connected with “Snapchat”.