IPT Email Marketing Studies 2004-06

RESULTS

Martin Kiersnowski

Chief Operations Officer

IPT Email Marketing Studies 2004-06

RESULTS

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

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?

Consumer research

1%

12%

9%

20%

32%

26%

1%

0% 5% 10% 15% 20% 25% 30% 35%

None

One

Two

Three

Four

More than four

Don't know/ not sure

20042006

Number of email accounts N=1,188

How many of these email accounts

do you check every day?

Consumer research

1%

6%

6%

13%

32%

41%

2%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

None

One

Two

Three

Four

More than four

Don't know?Not sure

Frequency of checking email accounts N=1,187

What type of email accounts do you have?

Consumer research

1%

3%

3%

19%

45%

29%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Web-based (Yahoo, Hotmail,etc.)

From a local/ regional ISP

Work-based

Academic-based

Other

Don't know/ Not sure

Types of email accounts N=2,110

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?

Consumer research

51%

35%

5%

0%

3%

3%

2%

0% 10% 20% 30% 40% 50% 60%

Web-based

From local/ regionalISP

Work-based

Academic-based

Other

None of myaccounts

Don't know/ Notsure

Primary email account N=1,185

Frequency of opening DM

Q: How frequently do you open a direct marketing email?

Consumer research

8%

19%

30%

19% 19%

3%

0%

10%

20%

30%

40%

50%

Never Rarely Occasionally Frequently Daily Don'tknow/ Not

sure

Frequency of opening DM N=1,186

Frequency of click-through

Q: Have you ever clicked on a link in a direct marketing email that took you to another website?

Consumer research

10%

31%

33%

15%

4%6%

0%

10%

20%

30%

40%

Never Rarely Occasionally Frequently Daily Don't know/ Notsure

Frequency of click-through N=1,187

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?

Consumer research

47%

37%

7%

1% 0%

8%

0%

10%

20%

30%

40%

50%

Never Rarely Occasionally Frequently Daily Don't know/ Notsure

Frequency of purchase from DM N=1,187

Motivators

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

Consumer research

Yes72%

No21%

DK/NS7%

Motivators N=1,179

Is this invitation to participate in market research considered Direct

Mail?

Consumer research

2%

14%

80%

2% 3%

-10%

10%

30%

50%

70%

90%

Spam DM Email Neither None of theabove

Don'tknow/ Not sure

Market research & DM N=1,185

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.

Consumer research

16%

19%

24%

27%

4%

6%

4%

27%

24%

20%

20%

9%

0% 5% 10% 15% 20% 25% 30%

Discount or an offermoney/ purchase

Description of an interestingproduct or service

Prize draw / incentives

Name of a company

Humorous/ quirky subjectline

None of the above

Don't know/ Not sure

20042006

Incentive to open (all) N=1,188

Incentive to Open (2)

Q: And which of these features would be most likely to make you open a direct marketing email?

Consumer research

14%

16%

25%

31%

3%

11%

27%

24%

20%

20%

9%

0% 10% 20% 30% 40%

Discount or an offermoney/ purchase

Description of an interestingproduct or service

Prize draw / incentives

Name of a company

Humorous/ quirky subjectline

None of the above

2004

2006

Incentive to open (primary) N=1,188

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?

Consumer research

21%

27%

6%8%

6%8%

7%

11%

39%

45%

22%

0%

10%

20%

30%

40%

50%

Morning Mid-day Earlyafternoon

Lateafternoon

Evening Don'tknow/ Not

sure

2006

2004

Time emails are opened N=1,181

Time Emails Are Opened (2)

Q: Generally speaking, how quickly do you open those direct marketing emails that you do open?

Consumer research

29%

16%

34%

4%

22%21%

11%

32%

7% 6%

11%

6%

0%

10%

20%

30%

40%

As soon as Isee them

Within 60min

1-2hrs afterseeing them

Same day Isee them

1-2 days 2-7 days Don/ tknow/ Not

sure

20062004

Time before opening DM N=1,185

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?

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?

45.3%

54.7%MaleFemale

0%

5%

10%

15%

20%

25%

30%

% Split

18-24 25-34 35-44 45-54 55-64 65-74 75+

None48%

1 Child15%

2 Children21%

3 Children10%

4 Children5%

5 Children1%

IMRS panel profile 313,000 respondents as of 1/3/2006

0%

2%

4%

6%

8%

10%

12%

% Split

NA

3%0%

7%11%

5%5%

8%31%

8%12%

5%9%

Not applicable

Channel Islands

Eastern Counties

North West

Northern England

Northern Ireland

Scotland

South East England

South West England

Midlands

Wales

Yorkshire & Lincolnshire

61%13%

10%

13%3%

Full Time (30+ hours a week)

Part Time (8-29 hours a week)

Retired

Not Working

Unemployed

IMRS panel profile 313,000 respondents as of 1/3/2006

Trends in Email Marketing

Industry research

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.

Almost three-quarters of home Internet users in the UK have a broadband connection

Top 3 Brands experiencing greatest growth in Broadband audience (Aug 04-Aug 05):

Industry stats 2005

 

0

200

400

600

800

1000

1200

BB audienceAug 04 '000

BB audienceAug 05 '000

Disney online

Blogger

MyOffers

Industry stats 2005

Nielsen/NetRatings UK NetSpeed home data, October 2005

B2C email marketing will double from 2005-2010: the UK & Germany lead the way.For the first time, over half of the European online population (51%) is shopping on the Internet. 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

Internet use outstrips TV viewing for the first timeBrand Republic 8 Mar 2006

After many years of strong increases, spend on direct mail had gone into reverse. Three main causes: the rise of email marketing, better targeting of direct mail and consolidation among marketers

Thomson Intermedia /KPMG: annual media spend 2005

Gates says future of advertising lies on the internetBrand Republic 27 Oct 2005

Industry stats 2005

UK trails the field at enforcing digital marketing lawsOsborne Clark, March 2006

Fewer consumers are using work e-mail accounts to receive opt-in commercial e-mails.This trend could be driven by factors such as rapid adoption of high-speed Internet access at home and increasing consumer comfort in managing multiple email accounts, each serving a different purpose

DM News, March 2006

Industry stats 2005

February 2006

IPT questionnaire microsite

Email invitation to to 9,000 direct marketing professionals

Broad selection of industry sectors for balanced sample

Industry research

How much of your spend is allocated to email marketing?

Industry research

0-20 21-40 41-60 61-80 81-100

0

10

20

30

40

50

60

70

80

2004

2006

Email marketing as a % of total spend

Are you planning to increase your spend on email marketing?

Industry research

0

10

20

30

40

50

60

70

80

Don't know can't say Stay the same Increase in the next year

2004

2006

Increase in email marketing spend 2006

How do you use email marketing?

Industry research

0

10

20

30

40

50

60

70

80

Customer Acquisition Customer Retention Cross selling Branding

2004

2006

Uses of email marketing

How do you send your campaigns?

Industry research

0

5

10

15

20

25

30

35

40

45

50

In-House ASP Solution In-House Outsourced

2004

2006

Email delivery

Do you check your emails for

junk mail triggers?

Industry research

0

10

20

30

40

50

60

70

Yes No

2004

2006

Use of spam filter checks

How clean are your email lists?

Industry research

0

10

20

30

40

50

60

8 to 10 4 to 5 1 to 3

2004

2006

Level of data hygiene

Do you use open &

click-through tracking?

Industry research

0

10

20

30

40

50

60

70

Yes No Don't Know

2004

2006

Use of open & click through tracking

Do you track actual sales?

Industry research

0

10

20

30

40

50

60

Track to purchase Track to enquiry Track to clickthrough Do not measure ROI

2004

2006

R.O.I. tracking

How well do you understand the latest email legislation?

Industry research

0

10

20

30

40

50

60

Very well Somewhat Not aware of it

2004

2006

Email legislation

Typical online consumer

multiple email accounts

primary account is personal, web-based

checks email every day

likely to respond to marketing email every week

Typical email marketer

planning to increase use of email

comfortably using email for customer acquisition

greater reliance on proven technology

confident use of campaign tracking

Snapshot

Breakfast at the Savoy

Q&A

Breakfast at the Savoy