DoubleClick Q1 2005 Email Trend Report Highlights Strong Quarter For Retailers
June 23 2005 - 11:00AM
PR Newswire (US)
DoubleClick Q1 2005 Email Trend Report Highlights Strong Quarter
For Retailers - Efficacy of Open Rate Metric Continues to Evolve as
Image Blocking Becomes More Prevalent - NEW YORK, June 23
/PRNewswire-FirstCall/ -- DoubleClick Inc. (NASDAQ:DCLK), the
leading provider of solutions for marketers, advertising agencies
and web publishers, today announced the release of the Q1 2005
Email Trend Report which shows email to be more productive than
ever, with significant increases in the click-to-purchase
conversion rate and orders per email delivered. The data also shows
continuing stability in email marketing performance with bounce
rates at an all time low, and stable click rates over the past
three years of tracking despite a recent decline in open rates. The
declining trend in open rates coincides with, and seems to reflect,
the adoption of image filtering by various ISPs. This overall
strength in email productivity reflects improved list management
and data collection practices, as evidenced by the reduced bounce
rates, as well as improved relevancy in content, reflected in the
increased click rates and conversion rates. Email Productivity
Remains Strong Following a very successful holiday retail season
for email marketers, Q1 was also very strong for big brand
retailers. For Retail and Catalog customers that track purchase
activity through DARTmail, Q1 conversion metrics remained strong,
despite a decline in open rates. The click-to-purchase conversion
rate rose 24.2% (from 3.3%) to 4.1% versus Q1 2004 while orders per
email delivered rose 18.2% (from 0.22%) to 0.26% versus the
previous year. Meanwhile, average order size remained stable ($92
in Q1 2004) to $91 in Q1 2005. Overall, the data show that despite
a dip in open rates, conversions have held steady demonstrating
that when customers are "in-market" they are continuing to convert
on email offers. Q1 2005 Response Metrics According to traditional
metrics, email marketing remained stable in Q1 2005. Bounce rates,
which were at an all time low at 8.3%, declined in every industry
category that DoubleClick tracks. Although open rates declined from
38.2% in Q1 2004 to 30.2% in Q1 2005, click rates remained
relatively stable, dipping slightly from 8.4% to 7.9%. This
relative stability in click rates, despite the decline in opens,
mirrors the HTML click-to-open ratio (which has increased from
26.6% to 30.2% from Q1 2004 to Q1 2005). These data demonstrate
that content remains effective in driving click response once an
email has been opened, and show consumers respond to email when
they are cyclically "in market" for particular content for which
they have subscribed. 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 is a reduction in the
calculated open rate of emails due to the inability to identify the
email as opened unless the images render. Other technological
factors that may be affecting open rates include the growth of
Webmail mailbox size limits spurred by Gmail, and consumer adoption
of bulk and "favorite" folder/filter rules to manage their
increasingly crowded inboxes. As email marketing becomes more
mainstream, file aging may also have an impact on open rates. Newer
names on a customer file tend to be more responsive early on, and
at the same time some long-term subscribers are frequently engaged
and responsive. Understanding these age cohorts on file is a good
step toward understanding increases and declines in open rates and
enables marketers to tailor content appropriately. Marketers should
also test different content, subject lines and offers to these
different profiles, and should evaluate how response rates are
indicative of customer value, to maximize the value they receive
from the channel. Industry-specific Metrics Bounce rates declined
in every category versus Q1 2004 and declined 25.7% overall. Retail
and Catalog (6.2%), Consumer Publisher (6.7%) and Business
Publisher (6.9%) recorded the lowest bounce rates this quarter.
Open rates also declined in every category versus Q1 2004. Business
Products and Services (36.7%), Financial Services (34.3%) and
Business Publisher (32.8%) recorded the highest open rates this
quarter. Click rates remained relatively stable versus the previous
year, with half of the categories that DoubleClick tracks reporting
increases and half declining. Financial Services and Consumer
Publisher (both 10.3%) had the highest click rates this quarter
followed by Consumer Products (8.9%) and Travel (8.4). "This
quarter's data demonstrate the continuing effectiveness of email
for communicating with and marketing to customers," said Kevin
Mabley, Senior Director and General Manager of Strategic Services
at DoubleClick. "We consistently see that our best-performing
mailers are leveraging historical response data and all available
customer profile data to target customer mailings to more relevant
audiences and segments, while enhancing response and conversion
data through more timely and relevant messages through dynamic
personalization and event-based triggers." Methodology The
DoubleClick Email Trend Report contains aggregate data from
DoubleClick's DARTmail email delivery technology. The Q1 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 of DoubleClick, +1-212-381-5629, Web site:
http://www.doubleclick.net/us/knowledge
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