Open rates climbing, click rates dropping

Ken Magill reported on a study published by Epsilon (pdf link) on Tuesday. This report shows open rates are climbing but click-through rates are falling.

Average e-mail click-through rates dropped 0.1% in the fourth quarter of 2008 from the third to 5.8%, the lowest ever recorded, according to a study released today by Epsilon. […] They are down from 6.1% in 2007 and 6.5% in 2006, according to the marketing services provider. […] According to the study, average open rates increased for the third quarter in a row to 20.9%, up almost 6% from the fourth quarter of last year.

The real factoid that jumped out at me about this is that it clearly demonstrates what a useless metric “open rate” is. As more and more people are, supposedly, reading commercial bulk email fewer and fewer of them are actually clicking on links.
What does this tell us? It tells us that open rate is not a way to tell you anything useful about an email campaign. If a sender can get more people looking at a particular email, and fewer people actually following through on the call to action, then clearly the problem is not that no one is seeing the email. There are lots of reasons why the clickthroughs might be decreasing, but it seems clear from the Epsilon study that simply getting more eyeballs will not fix anything.
Can we now stop using “open rate” to measure anything relevant?

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Spam or not spam

I have been a bit behind on my blog reading recently, and am slowly going through my RSS feed catching up with what everyone has had to say about spam in the last few weeks.
One of the articles that caught my attention was a post from VerticalResponse discussing the response to a marketing campaign from one of their customers. It seems to me the point of the post is to defend the VerticalResponse mail to the customer. The mail VerticalResponse sent was not spam. Why this is true is not made clear, other than the mail was not pills spam, phishing or porn.
Contrasting with that article is a post a friend pointed out to me today. This article goes to the other extreme, and seems to say that any one-to-many email is spam and should not be sent. While trying to find his point, the author does take the step of exempting any opt-in marketing from his definition. The confusing bit is that the statistics he is using are compiled by MailerMailer, who have a very clear anti-spam policy and allow only permission based marketing.
What both posts seem to be missing is that, these days, spam is in the eye of the receiver, not the sender. There are customers who groan every time they receive mail from their vendor. Eventually, they may lash out at a sender and complain about the email. At that point, a sender is now dealing with an angry person, and arguing the mail is no spam is not going to diffuse the situation. On the flip side, there are people who are very happy to receive mail, even advertising and marketing mail, from vendors. Even if they do not “open” the mail (read: load images in the email), they may be opening, reading and acting on the offers in the email.
Email marketing is a valuable tool, when it is done correctly and focuses on the receiver’s needs and wants. It is when marketers ignore the individuals they are mailing that they are more likely to see complaints or problems.

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Open Rate? Render Rate?

The EEC is pushing the term render rate to replace the term open rate. In addition to changing the name the EEC is attempting to standardize how the render rate is calculated. Loren McDonald, co-chair of the EEC Measurement Accuracy Roundtable posted his views on the discussion today. He presents 3 reasons why we should care about using render rate.

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$234M default judgment against spammers

MySpace has won a 234 million dollar judgment against Walt Rines and Sanford Wallace.
“MySpace has zero tolerance for those who attempt to act illegally on our site,” [MySpace Chief Privacy officer] Nigam said in a statement. “We remain committed to punishing those who violate the law and try to harm our members.”
These are two of the spammers responsible for me learning to read headers and report spam. Both of them have previous judgments against them. Wallace sued AOL to force AOL to accept his mail. Eventually the judge ruled against Cyber Promotions and Wallace.

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