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What does the Overstock commercial mean for .co?

Kevin Murphy, November 5, 2010, Domain Registries

Judging by the number of exclamation marks being deployed over on the .CO Internet blog today, it’s a fairly safe bet that the company is rather happy with Overstock.com’s latest TV commercial.
It’s the first high-profile commercial to feature a .co domain, in this case o.co, which could go some way to raise the newly relaunched TLD’s profile in the US.
While it’s a nice first step for .CO, I wouldn’t say its TLD has necessarily “arrived” yet, on the basis of this ad, for a few reasons.
First, what’s this “shortcut” business?
Overstock.com commercial
Should this be troubling?
The biggest marketing coups .CO has inked to date have been for x.co and t.co, URL shorteners offered by Go Daddy and Twitter respectively. Now, Overstock is using its o.co as a “shortcut”, which bounces visitors to overstock.com.
True, Overstock’s .com domain is its brand, and that’s not about to change, but its use of o.co as a “shortcut” may perpetuate the short-term perception that .co’s primary purpose is short URLs.
On the upside, the company is actively encouraging customers to type a .co domain into their browsers.
Getting this “type-in awareness” is something I know that .CO Internet is looking to foster, something that the Twitter deal does not necessarily bring to the table.
It’s also encouraging that Overstock feels comfortable using a .co domain where it does not own the equivalent .com. That said, nobody does. Most single-letter .com domains are still reserved.
While this may be a branding risk for Overstock, could it actually be helpful for .CO, training fat-fingered users the difference between .com and .co domains? It seems possible.
It’s interesting to note that Overstock is using “www.” for its .co, but not for its .com, presumably in order to train viewers that “this is a URL”, much the same as .com domains were once uniformly advertised with the www prefix.
A reliable sign that .co has “arrived” would be when an advertiser feels happy to drop the www.