Marketing Metrics Report

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Bruce Lang
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1 Marketing Metrics Report AUSTRALIA July - December

Overview General This report is the third in a series of reports being produced every 6 months on the Australian email marketing landscape. This report aims to: 1.

2 Overview General This report is the third in a series of reports being produced every 6 months on the Australian marketing landscape. This report aims to: 1. Provide Australian marketers with general benchmark data 2. Help marketers gauge and improve upon their own marketing results 3. Uncover general trends, provide interpretations and present factors that have the biggest impact on the success of campaigns To make sense of this data we have focussed on the following key metrics: Open Rate Click Through Rate (CTR) Industry Domain By Day By Hour Bounce & Deliverability General; Industry; Send Volume Categories General; Industry; Send Volume Categories; Reletive to Open Open; CTRs; Send Volume Categories Open; CTRs; Industry Open; CTRs Open General; Industry Information we re using This report includes data from over 103 million messages from campaigns sent by over 5,500 business users during the second 6 months of We have excluded campaigns with less than 5 addresses to minimise data distortion. We also excluded all messages sent from our stand alone resellers and corporate networks. 1 Marketing Metrics Report Australia July - Dec 2007

3 Key Open Rates Open rates have remained fairly consistent with the first half of 2007 observing only a small drop of 1.56% to 20.99%. Once again messages to a database of less than 1000 contacts achieved significantly higher open rates than messages to databases with more than 1000 contacts. Click Through Rates (CTR) Overall click through rates have decreased marginally by 0.13% to 4.16%. However, this number was considerably improved in smaller sized lists. Also positive to note was the small increase in CTR s in these smaller sized lists. Most Responsive Industries In analysing industry responsiveness no trends were identified from H and H For the second half of 2007 (H2 2007) Primary Industry achieved the greatest CTR of 8.48%. Days with Greatest Responses Tuesday experienced the lowest weekday send volumes, yet achieved the highest open and click through rates. The largest number of s were sent on Friday, also the day when the open rate and click through rates were at the lowest. Bounces & Deliverability It was excellent to observe the reduction in bounce rates across all send categories for the second half of All three volume categories demonstrated noticeable improvements in the bounce rate achieved. Number of s Opened by Hour Over 75% of all recipients who open s have done so within 24 hours of delivery. Another 6% will take longer than a week to open your message. Summary of Key This report highlights the 3 factors that have the most significant impact on the success of your campaigns: 1. Database Management: Clean, segment and continually profile your database to ensure maximum delivery, open and CTR s 2. Relevancy and Sender Recognition: Ensure your s, subject lines, content and call s to action are relevant to the recipient 3. Targeting and Segmenting Lists: Use tools that will help you to easily target, profile, measure and modify your campaigns for better results. 2 Marketing Metrics Report Australia July - Dec 2007

Contents Unique Open Rates 04 Unique Open Rates by Send Volumes 05 Unique Open Rates by Industry 06 Unique Click Through Rates 07 Unique Click Through Rates by Send Volumes 08 Unique Click Through

4 Contents Unique Open Rates 04 Unique Open Rates by Send Volumes 05 Unique Open Rates by Industry 06 Unique Click Through Rates 07 Unique Click Through Rates by Send Volumes 08 Unique Click Through Rates by Industry 09 Click Throught Rate Relative to Open Rate *NEW* 10 Bounces (Deliverability) 11 Bounces (Deliverability) by Send Volumes 12 Bounces (Deliverability) by Industry 13 Send Volumes, Open & CTRs for the Top 15 Domains 14 Open, CTR & s Sent by Day 15 Time Taken to Open s 16 Glossary & Acronyms Marketing Metrics Report Australia July - Dec 2007

Unique Open Rates This chart displays the total number of emails opened for the first time (as opposed to being opened multiple times by the same recipient) as a percentage of the total number of

5 Unique Open Rates This chart displays the total number of s opened for the first time (as opposed to being opened multiple times by the same recipient) as a percentage of the total number of s sent. Unique Open Rates for H across all industries and domains was slightly lower (1.56%) than the first half of Half : 22.05% Half : 20.49% Interpretations Average Open Rates across all industries, domains and send volumes have slightly dropped in the second half of These results appear to be skewed by the open rate results of sends to mailing lists larger than 1000 contacts. See page 5 for categorised sends by volume. 4 Marketing Metrics Report Australia July - Dec 2007

Unique Open Rates by Send Volumes To remove any bias associated with large sends we have broken the send volumes into 3 categories; based on the number of contacts: 5-499; 500-999; 1,000+

6 Unique Open Rates by Send Volumes To remove any bias associated with large sends we have broken the send volumes into 3 categories; based on the number of contacts: 5-499; ; 1,000+ Interpretations When compared to the average Open Rate of 20.49%, sending to smaller (presumably cleaner and/or segmented) databases, has a positive and substantial effect on Open Rates. We attribute this result to 3 main factors: 1. Marketers are focusing more on quality rather than quantity and focusing on growing databases with the right types contacts rather than a large number of contacts who may have no interest in their product. 2. Marketers have access to more detailed information and tools that allow them to profile and segment databases. 3. As a result of (1) and (2) marketers have become savvier in their approach to marketing and no longer use a one size fits all approach. The consumer is then more willing to respond to messages that appeal to his/her own interests. We found significant variations in Open Rates accross the different send categories: Half : 36.3% : 33.8% 1,000+: 20.1% Half : 35.41% : 31.65% 1,000+: 19.64% 5 Marketing Metrics Report Australia July - Dec 2007

7 Unique Open Rates by Industry This chart displays Unique Open Rates for messages sent by each industry sector for the 6 months prior to December The industry with the highest Unique Open Rates for H was Insurance and Superannuation with an Open Rate of 31.46% Call Centre/Customer Service had the most significant drop from 42.7% to 15.3% Administration maintained the lowest Open Rates dropping from 14.25% to 10.54% Also interesting to note was in H only 2 industries had an average open rate over 30% compared to 13 industries in H Half Half Marketing Metrics Report Australia July - Dec 2007

Unique Click Through Rates This chart displays the total number of unique links clicked as a percentage of the total number of emails sent.

8 Unique Click Through Rates This chart displays the total number of unique links clicked as a percentage of the total number of s sent. Unique CTRs across all industries, domains and send volumes were slightly lower for the second half of Half : 4.29% Half : 4.16% 7 Marketing Metrics Report Australia July - Dec 2007

9 Unique Click Through Rates by Send Volumes As for Open Rates we have broken the send volumes into 3 categories; based on number of contacts: 5 499; ; 1,000+ Unique CTRs were substantially higher in each of the two smaller send categories. Furthermore, in both the smaller send categories, the CTR s slightly increased in H Half : 7.84% : 6.51% 1,000+: 4.05% Half : 8.11% : 6.67% 1,000+: 3.95% Interpretations When compared to the average unique CTR of 4.16%, sending to smaller list sizes (presumably cleaner and/or segmented), has a positive and substantial effect on CTRs. 8 Marketing Metrics Report Australia July - Dec 2007

10 Unique Click Through Rates by Industry This chart displays unique click through rates experienced by each industry over the 6 months prior to December Primary Industry experienced the highest CTR of 8.48% in H which was noticeably lower than the highest CTR of H1 2007, 10.98%, achieved by Call Centre/Customer Service Call Centre/Customer Service experienced the highest drop in CTRs from 10.98% in H to 3.16% in H Half Half Marketing Metrics Report Australia July - Dec 2007

11 Click Through Rate Relative to Open Rate *NEW* This chart displays average unique CTR as a percentage of the total number of unique opened s. Relevance This figure indicates how responsive the recipients who have opened an are, giving a direct measure of the effectiveness of the s links and calls to action. Half : - Half : 20.31% 10 Marketing Metrics Report Australia July - Dec 2007

12 Bounce Rate (Deliverability) This chart displays the total number of bounced messages as a percentage of the total number of s sent. Bounce rates are often used as a measure of deliverability. Bounce rates include permanent and temporary bounces. For the second half of 2007 bounce rates were significantly lower at 10.23% - equivalent to a deliverability rate of 89.77% Half % Half : 10.23% Key Message To minimise bounce rates (increase deliverability) keep a clean database. Update or delete any permanent bounce addresses. Ensure your list is opt-in; use a known From address and keep the message content and subject line relevant to your recipients. If your vendor provides one, use a content analysis tool to test your messages against Spam filters. 11 Marketing Metrics Report Australia July - Dec 2007

13 Bounce Rate (Deliverability) by Send Volumes As for Bounce Rates we have broken the send volumes into 3 categories: 5 499; ; 1,000+ Bounce rates are improved across all send categories for the second half of Half : 8.86% : 9.92% 1,000+: 13.06% Half : 7.07% : 8.03% 1,000+: 10.41% Interpretations When segmenting databases, or sending to smaller list sizes, the occurrence of bounces is reduced. That is, deliverability is improved. List cleanliness plays an important role in minimising bounce rates or increasing deliverability. It is often the case that the larger the list the dirtier that list will be. For permanent bounces, we suggest removing them from your list or contacting the address owner and updating their contact details. 12 Marketing Metrics Report Australia July - Dec 2007

Bounce Rate (Deliverability) by Industry This chart displays bounce rates by industry. Community & Sport achieved the lowest bounce rate of 5.04%, just under half of the overall average bounce rate.

14 Bounce Rate (Deliverability) by Industry This chart displays bounce rates by industry. Community & Sport achieved the lowest bounce rate of 5.04%, just under half of the overall average bounce rate. The Accounting sector showed the greatest improvement reducing their bounce rate to 9.49% in H from 18.47% in H The average bounce rate for Call Centre/Customer Service rose to an alarming 37.87% Half Half Marketing Metrics Report Australia July - Dec 2007

Send Volumes, Open & CTRs for the Top 15 Domains These charts display the top 15 domains by send volume and their associated Open Rates and CTRs. Hotmail.

Half 1-2007 The top 15 domains for H2 2007 received 53.13% of all emails sent down 1.48% from 54.61% for H1 2007. The top 15 domains are all web and ISP based accounts.

15 Send Volumes, Open & CTRs for the Top 15 Domains These charts display the top 15 domains by send volume and their associated Open Rates and CTRs. Hotmail.com once again received almost 5 times as many s as any other domain (24.85%) with figures in line with H The next most sent to domain was Bigpond.com at 4.67%. Half The top 15 domains for H received 53.13% of all s sent down 1.48% from 54.61% for H The top 15 domains are all web and ISP based accounts. No business or government domain was listed in the top 15. Bigpond.net.au achieved the highest average Open Rate at 32.22% with hotmail.com at 13.76%. Aol.com had the lowest at 6.75%. Bigpond.net.au also had the highest average CTR at 6% with aol.com the lowest at 1.71%. % Volume % Opened % Clicked Half Marketing Metrics Report Australia July - Dec 2007

Open, CTR s & Emails Sent by Day This chart displays the average Open Rates and CTRs by day, and the total amount of messages sent on each day for the second half of 2007.

16 Open, CTR s & s Sent by Day This chart displays the average Open Rates and CTRs by day, and the total amount of messages sent on each day for the second half of Although Tuesday experienced the lowest weekday send volumes, this was the day with the highest open and click through rates. Half The largest number of s were sent later in the working week with peaking on Friday. The smallest volumes were seen on Saturday and Sunday respectively. Fridays were the day when the most s were sent in H yet the open rate and click through rates were at the lowest. Although the Open Rates vary significantly on the varying days of the week, the CTR s are fairly consistent throughout the week with the peak being 4.76% on Tuesdays and the lowest being 3.81% on Fridays. % Volume % Opened % Clicked Half Marketing Metrics Report Australia July - Dec 2007

Time Taken to Open Emails This chart displays how soon after delivery the percentage of recipients who would eventually open a message have actually done so.

17 Time Taken to Open s This chart displays how soon after delivery the percentage of recipients who would eventually open a message have actually done so. The findings are very closely correlated to H Over 50% of all recipients who will open an have done so within 8 hours of delivery. Within 24 hours, over 75% are opened. A remaining 6% of recipients will open your message after 144 hours (7 days). Key Message Generally, most of your recipients will open your message within the first 24 hours. Therefore, be prepared to receive the majority of responses to your campaign within the first few days after delivery. However, some recipients may not open your message for several weeks. Therefore, it is important to keep landing pages and associated campaign media active during this period. Half Half Marketing Metrics Report Australia July - Dec 2007

18 About Vision 6 Glossary & Acronyms Vision 6 is a global leader in SMS & Marketing and Database Management solutions. Its award winning product V offers a powerful, on demand solution delivering automated marketing, marketing system analytics, online surveys, & SMS creation, sales lead generation and extensive list management all within an intuitive and spam compliant framework. For more information and a free trial of our software visit or phone For more information about this report please contact Lisa Renneisen at lrenneisen@vision6.com.au or Mathew Myers at mathew@vision6.com.au CTRs Click Through Rates EDM Electronic Direct Marketing ISP Internet Service Provider, e.g. BigPond Open Rate Measures the number of times an is opened by a recipient as a percentage of the total number of s sent CTR Relative to Open Measures the CTR as a percentage of the total number of unique opened s. Permanent Bounce usually means the address is incorrect or is no longer in operation sometimes referred to as a Hard Bounce Temporary Bounce usually means the address is temporarily unavailable. The most common Temporary Bounce reasons are Server Time Expired (for receiving ISP), Delivery Time Expired (for sending ISP) and Mailbox Full sometimes referred to as a Soft Bounce Unique CTR measures the first time a link is clicked by a recipient as a percentage of the total number of s sent. Unique Open Rate measures the first time an is opened by a recipient as a percentage of the total number of s sent. ground floor 47 warner street fortitude valley qld 4006 australia marketing@vision6.com.au Marketing Metrics Report Australia July - Dec 2007

Marketing Metrics Report Australia

July December 2011 Email Marketing Metrics Report Australia Table of Contents About the Author 3 Overview 4 Key Summary 5 Unique Open Rates 6 Unique Open Rates by Send Volumes 7 Unique Open Rates by Industry