IPT Email Marketing Studies 2004-06 RESULTS Tom Fuller Managing Director IMRS

What’s the Story?

The environment for marketers continues to be a challenging one But from the Consumers’ point of view it’s a problem solved This gives us room to experiment—and operate  Of course, more changes are coming—Goodmail, etc. What’s the Story?

The environment for marketers continues to be a challenging one

But from the Consumers’ point of view it’s a problem solved

This gives us room to experiment—and operate

 Of course, more changes are coming—Goodmail, etc.

Questionnaire hosted on IMRS website Email invitations to IMRS research panel  1,231 respondents from throughout UK  47% male, 53% female, 52% married 51% in full time work 57% own home or are buying through mortgage 56% have one or more children Some questions in this survey were duplicated in a 2004 survey—where applicable, results reported for both years. Consumer research study

Questionnaire hosted on IMRS website

Email invitations to IMRS research panel

 1,231 respondents from throughout UK

 47% male, 53% female, 52% married

51% in full time work

57% own home or are buying through mortgage

56% have one or more children

Some questions in this survey were duplicated in a 2004 survey—where applicable, results reported for both years.

Q: Does your email account have a special folder where most of the direct emails or span is directed to? R=1,192 Consumer research study Most have them…

Q: How well does the special folder for direct emails and spam work? R=857 Consumer research study … and they seem to do what consumers want them to do

Q: Do you ever look at the emails in this special folder for direct mail or spam? R=861 Feeling in control of direct mail increases readership?

Q: The companies sponsoring this survey make a distinction beween direct marketing emails and spam. When you think of emails, do you also make that distinction?

Consumer research Public perceptions and attitudes towards email marketing Key finding: Although DM is often criticized by interest groups and the press, the public is far more tolerant 80% open their bulk mail folders to look at DM

Public perceptions and attitudes towards email marketing

Key finding: Although DM is often criticized by interest groups and the press, the public is far more tolerant

80% open their bulk mail folders to look at DM

Consumer research How many email accounts do you have? Why is this important? Well, how many of your emails will your target actually see?

Number of Email Accounts N= 1,188 73% have more than one account

Consumer research How many of these email accounts do you check every day?

Frequency of checking Email Accounts N=1,187 How many of these accounts do you check every day? 73% check 1 or 2 every day

Consumer research What type of email accounts do you have?

Types of Email Accounts N=2,110 74% use private, web-based email

Consumer research Primary email account Q: Do you consider one of these accounts to be your ‘primary’ or most important account for personal email messages sent and received?

Primary Email Account N=1,185 51% say web-based mail is their most important account

Consumer research Frequency of opening DM Q: How frequently do you open a direct marketing email?

Frequency of Opening DM N = 1,186 38% say daily or 2 – 3 times a week—and another 30% say more than monthly

Consumer research Frequency of click-through Q: Have you ever clicked on a link in a direct marketing email that took you to another website?

Frequency of Click-Through N = 1,187 19% click through 1 – 3 times a week

Consumer research Frequency of purchase from DM Q: Have you ever made a purchase (either online or in a store) based on what you saw in a direct marketing email or a web page you visited after clicking a link in a direct marketing email?

Frequency of Purchase from DM N = 1,187 8% purchase at least once a week 37% say monthly—or less

Consumer research Motivators Q: Have you ever entered a competition or prize draw or sweepstakes after viewing a direct email marketing message?

Motivators N = 1,179 Sweepstakes or prize draws do work

Consumer research Is this invitation to participate in market research considered Direct Mail? Q: You were asked to participate in this market research study by an email invitation. Do you consider this emailed invitation to be:

Is an invitation to Participate in Market Research Considered Direct Marketing? N = 1,185 Consumers classify direct mail on their own—it’s not just research. Newsletters, refunds, etc.

Consumer research Incentive to Open (1)‏ Q: When you are trying to decide whether or not to open a direct marketing email message, which of the following might persuade you to open it? Please tick all that apply.

Incentive to Open N=1,188 Trusted brands more important, money off less so than 2 years ago

Consumer research Incentive to Open (2)‏ Q: And which of these features would be most likely to make you open a direct marketing email?

Primary Incentive for Opening DM Email N = 1,188 … but money still works.

Consumer research Time Emails Are Opened (1)‏ Q: At what time of day are you most likely to open a direct marketing email, assuming it interests you enough to open it at all?

Time Emails Are Opened N = 1,181 Before work or school or after dinner

Consumer research Time Emails Are Opened (2)‏ Q: Generally speaking, how quickly do you open those direct marketing emails that you do open?

Time Before Opening DM N = 1,185 Both windows are getting shorter—two hours becomes one, two days becomes one—driven by volume?

A division of Interactive Prospect Targeting, the UK’s largest online data collector IMRS has the UK’s largest online Market Research Panel—313,000 registered respondents at present We host surveys and provide sample for ad hoc projects, as well as panellists for third parties We charge per completed survey. Our costs are low and our turnaround time is fast We adhere to the Market Research Society’s Code of Conduct in all of our research Who are we?

A division of Interactive Prospect Targeting, the UK’s largest online data collector

IMRS has the UK’s largest online Market Research Panel—313,000 registered respondents at present

We host surveys and provide sample for ad hoc projects, as well as panellists for third parties

We charge per completed survey. Our costs are low and our turnaround time is fast

We adhere to the Market Research Society’s Code of Conduct in all of our research

IMRS is a full service market research agency Obviously, we do conduct a large number of Internet surveys We also conduct online focus groups We recruit for CATI surveys online We can act as full charge supplier for complex or multi-modal projects IMRS conducts qualitative research, both online and off We consult with companies regarding the effective use of and response to weblogs What do we do?

IMRS is a full service market research agency

Obviously, we do conduct a large number of Internet surveys

We also conduct online focus groups

We recruit for CATI surveys online

We can act as full charge supplier for complex or multi-modal projects

IMRS conducts qualitative research, both online and off

We consult with companies regarding the effective use of and response to weblogs

IMRS Panel Profile 313,000 respondents as of 1/3/2006

IMRS panel profile

Industry Stats 2005 Nielsen//NetRatings UK NetSpeed home data, including Internet applications, Aug 04 & Aug 05, October 2005 Broadband usage exploded in the UK over the past 12 months. ( Understatement of the year…)‏ Almost three-quarters of home Internet users in the UK have a broadband connection ( In 2003 it was 11%)‏ Top 10 Brands experiencing greatest growth in Broadband audience (Aug 04-Aug 05):

Nielsen//NetRatings UK NetSpeed home data, including Internet applications, Aug 04 & Aug 05, October 2005

Broadband usage exploded in the UK over the past 12 months. ( Understatement of the year…)‏

Almost three-quarters of home Internet users in the UK have a broadband connection ( In 2003 it was 11%)‏

Top 10 Brands experiencing greatest growth in Broadband audience (Aug 04-Aug 05):

Industry research Trends in Email Marketing First, hot off the presses…

Industry Stats 2005 What’s the story? You are learning You have more options You are outsourcing more You are more interested in customer acquisition … and in accountability— Vive le ROI! But where is the integration? Is Direct Mail a tactical one-off with handy metrics? Can it be integrated with other elements of a marketing strategy?

What’s the story?

You are learning

You have more options

You are outsourcing more

You are more interested in customer acquisition

… and in accountability— Vive le ROI!

But where is the integration? Is Direct Mail a tactical one-off with handy metrics? Can it be integrated with other elements of a marketing strategy?

Industry Stats 2005 Nielsen/NetRatings UK NetSpeed home data, October 2005 Yeah, MyOffers is ours.

B2C email marketing will double from 2005-2010: the UK & Germany lead the way. The UK had the largest percentage of online shoppers, at 71% of its online population Forrester, Oct 2005 Digital agencies report massive growth as online advertising marches on Brand Republic 26 Oct 2005 The exponential growth of online sales was revealed yesterday when the Office for National Statistics said that their value rose by 81 per cent last year. Times Nov 05 Industry Stats 2005

B2C email marketing will double from 2005-2010: the UK & Germany lead the way.

The UK had the largest percentage of online shoppers, at 71% of its online population

Forrester, Oct 2005

Digital agencies report massive growth as online advertising marches on

Brand Republic 26 Oct 2005

The exponential growth of online sales was revealed yesterday when the Office for National Statistics said that their value rose by 81 per cent last year.

Times Nov 05

Internet use outstrips TV viewing for the first time Brand Republic 8 Mar 2006 Gates says future of advertising lies on the internet Brand Republic 27 Oct 2005 Industry Stats 2005

Internet use outstrips TV viewing for the first time

Brand Republic 8 Mar 2006

Gates says future of advertising lies on the internet

Brand Republic 27 Oct 2005

IPT Industry research study  February 2006 IPT questionnaire microsite Email invitation to to 9,000 direct marketing professionals Broad selection of industry sectors for balanced sample

 February 2006

IPT questionnaire microsite

Email invitation to to 9,000 direct marketing professionals

Broad selection of industry sectors for balanced sample

Industry research study Are you planning to increase your spend on email marketing?

Increase in email marketing spend over the next year 51% say their budgets will grow this year

Industry research study How do you use email marketing?

Uses of email marketing Acquisition replaces retention

Industry research study How do you send your campaigns?

Email delivery Into the hands of professionals

Industry research study Do you check your emails for junk mail triggers? (Words or phrases that ISPs use to decide if your message should be blocked)‏

Use of spam filter checks More, but not enough

Industry research study How clean are your email lists?

Level of data hygiene We are getting better (but could do more)‏

Industry research study Do you use open & click-through tracking?

Use of open & click through tracking The tools to check this are getting easier to use

Industry research study Do you track actual sales?

R.O.I. tracking As more DM gets outsourced, we leave the tracking to the pros?

Industry research study How well do you understand the latest email legislation?

Understanding of the Privacy & Electronic Communication Legislation Yesterday’s news? Or too many new faces in the marketing dept?

Snapshot Typical online consumer  multiple email addresses  most marketing emails read at home same day as received  42% have purchased as a result of an email communication Typical email marketer  planning to increase use of email  comfortably using email for customer acquisition greater reliance on proven technology greater use of campaign tracking

Typical online consumer

 multiple email addresses

 most marketing emails read at home same day as received

 42% have purchased as a result of an email communication

Typical email marketer

 planning to increase use of email

 comfortably using email for customer acquisition

greater reliance on proven technology

greater use of campaign tracking

Stories from 2 Worlds Typical online consumer  Email is a problem solved  Control is the key  How would he or she react if we bypass the bulk mail folders? Typical email marketer  If winning the bulk mail folder is the new game, do you email more frequently? Deliver on ‘ click to see bulk folder ?’  Does anyone leverage email with other media?