DoubleClick's Latest Email Trend Report Shows Record Email Productivity in Q4 2004
15 März 2005 - 3:30PM
PR Newswire (US)
DoubleClick's Latest Email Trend Report Shows Record Email
Productivity in Q4 2004 - Report also Highlights the Declining
Efficacy of Open Rate Metrics as a Standalone Performance Measure -
NEW YORK, March 15 /PRNewswire-FirstCall/ -- DoubleClick Inc.
(NASDAQ:DCLK), the leading provider of solutions for marketers,
advertising agencies and web publishers, today released the Q4 2004
Email Trend Report which shows record email productivity during the
quarter. During the quarter, marketers saw all time high
order-per-email-delivered rates, and near-record click-to-purchase
conversion rates. In addition, the revenue-per-email-delivered rate
rose despite a dip in average order size. The Email Trend Report
also points to a changing importance in the metrics that are used
to measure the effectiveness of email marketing. In particular, the
report highlights a challenge in measuring and benchmarking open
rates as a metric, primarily due to technological changes such as
image blocking, that affect how opens are recorded. Email
Productivity at Record Highs For Retail and Catalog customers that
track purchase activity through DARTmail, Q4 2004 was a banner
quarter. Orders-per-email delivered at 0.35 percent were at an
all-time high and significantly higher than the previous highest
rate recorded in Q1 and Q2 of 2003 (0.30 percent).
Click-to-purchase conversions at 4.8 percent were also at record
levels, up from 4.2 percent in Q4 2003 and nearly matching the
all-time high 4.9 percent recorded in Q4 2002.
Revenue-per-email-delivered has remained steady over the past few
years, with Retail and Catalog marketers recording $0.26 per email
delivered in Q4 2004. Combined with the average order size which
has slowly declined over the same time period, these results
suggest a change in how email marketing is driving online sales.
Although more people are purchasing as a result of an email offer,
they are purchasing smaller ticket items. This suggests that
email-driven purchasing has expanded to include nearly all product
categories, and when people are in market for an item they are
indeed converting. Despite the decline in average order size, the
consistency of the revenue-per-email delivered further underscores
the profitability of the email marketing medium. These findings are
also consistent with the findings released in December by
Performics, the search marketing division of DoubleClick, which
showed that click volume and conversions were up, while average
cost-per-click remained stable. Q4 Response Metrics Email marketing
remained stable in Q4 2004, according to traditional metrics.
Bounce-back rates declined to an all-time low of 9.4 percent. Open
rates and click rates both declined slightly to 32.6 percent and
8.0 percent respectively, although each has been within a 6.6 point
and 1.7 point range respectively for the past three years. These
metrics show remarkable stability over the past three years, amidst
public and private sector concern for spam and delivery filtering
tools. While open rates have declined slowly but steadily over the
past few quarters, clicks have remained strong and conversions have
improved. The challenges in maintaining open rates include the
adoption of image blocking filtering mechanisms among many major
ISPs and email programs (such as Outlook) as a response to protect
readers from potentially graphical or offensive spam messages. A
side effect of this change, however, is a reduction in the
calculated open rate of emails due to the inability to identify the
email as opened unless the images render. Email delivery has
remained a major focus for marketers in recent years due to the
backlash to the spam onslaught. However, many marketers have
realized that by focusing on delivery as a primary goal, they risk
losing sight of the true goal of building relationships with their
customers and increasing email productivity. In addition, the
absence of an industry standard for calculating delivery rate has
led to confusion as various benchmarks exist without much
explanation of their methodology and, therefore, without grounds
for comparison. "As the email channel matures, it is important for
marketers and publishers to evolve their strategies along with
their success metrics in order to build and enhance their
relationships with customers," said Kevin Mabley, Director of
Strategic Services at DoubleClick. "In addition to monitoring
traditional metrics of email performance, the savviest companies
are putting these data into context with customer behavior and
profile data to drive informed targeting and messaging."
Methodology The DoubleClick Email Trend Report contains aggregate
data from DoubleClick's DARTmail email delivery technology. The Q4
data are based on billions of permission-based emails from hundreds
of clients. The full results are available to DoubleClick customers
and an executive summary is available at:
http://www.doubleclick.net/us/knowledge Performance metrics in this
release relate to un-weighted averages across all companies. This
is done to provide a measure of average company performance, due to
the fact that very large mailers can bias the overall and category
results. About DoubleClick Inc. DoubleClick is the leading provider
of solutions for marketers, advertising agencies and web publishers
to plan, execute and analyze their marketing programs.
DoubleClick's online advertising, email marketing and database
marketing solutions help clients yield the highest return on their
marketing dollar. In addition, the company's marketing analytics
solutions help clients measure performance within and across
channels. DoubleClick Inc. has global headquarters in New York City
and maintains 22 offices around the world. CONTACT: Dave Frankland
DoubleClick 212.381.5629 DATASOURCE: DoubleClick Inc. CONTACT: Dave
Frankland, DoubleClick, +1-212-381-5629, or Web site:
http://www.doubleclick.com/ http://www.doubleclick.net/us/knowledge
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