EMAIL
MICROTARGETING
By DAVID MOCERI
President, VIBEdirect
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Email
marketing is undergoing rapid changes. Now, more than ever, both
the creative and demographic selection and targeting of a message
must be highly relevant and qualified.
Microtargeting
has become a valued strategy. At VIBEdirect,
we have seen the industry withstand incredible changes based on
bandwidth, creative, message perception and the fickle marketing
factors that affect both open and click through rates with today's
campaigns.
Consumers
received an average of 3 marketing related emails per month in
1999. This number is expected to jump to over 130 marketing related
emails per month by 2005 due to the success rate of email marketing
and the number of companies sending optin email. The problem is
that this trend has caused email open rates to drop.
In
the past, our success had been built on wholesaling opt-in email
campaigns to brokers and agencies. But as business conditions
changed, we evolved by providing our clients with a microtargeted
approach for cost effective results and a positive return on investment.
As a result, we have maintained a sustained, strong period of
growth.
Our
opt-in lists offer marketers a "politically correct"
way to reach their target audience on the net. While using bulk
e-mail lists is cheaper, the practice in itself is extremely controversial.
You must be very careful when considering using bulk e-mail to
market your wares on the Internet. This can lead to some unexpected
and unwanted results. For example, some of your recipients may
decide to "flame" you by clogging up your e-mail system
with angry responses to your marketing message. Other recipients
will complain to your Internet Service Provider, who may decide
to discontinue your account.
We
have more than 2,000 opt-in lists with more than 40 million unique
names to choose from. All of our email addresses are ALL opt-in
from a variety of quality web sites, banner ads, e-surveys &
e-zine lists.
The
Power of Microtargeting
Email microtargeting is really a distinct form of "niche"
marketing, differentiating consumers by segmenting them into identifiable,
targeted groups. It's the depth of relationships that counts,
not the quantity. Studies show that closer relationships increase
the likelihood that email advertising will make an impact.
For
the higher quality (more targeted and uniform) audience, advertisers
have traditionally paid a higher cost per impression, although
the overall cost for advertisers is lower with email campaigns
since the number of impressions is lower. In addition, the ability
to modify and adapt the creative to confront rapidly changing
marketing conditions makes this medium especially attractive and
cost effective.
Our
microtargeting approach has been very powerful. This strategy
focuses on increasing market share--that is, on selling a product
to as much of the market as possible. Once a product succeeds
on a microtargeting level, we can eventually modify it to appeal
to a larger group. When properly and effectively executed, microtargeting
leads back to the masses.
Instead
of trying to reach the greatest number of people, microtargeting
focuses on earning more of an individual customer's business.
This strategy doesn't target groups of customers, it targets units
of one.
The
foundation of our microtargeting approach lies in the idea that
80% of a company's business comes from 20% of its customers. The
most active frequent fliers account for the bulk of the airline
profit. So, rather than aiming to reach all possible fliers, airlines
realize they can more efficiently market themselves by trying
to win over the top level, and by encouraging those frequent fliers
to fly as frequently with them as possible.
Our
microtargeting email practices help businesses provide better,
more personal services. It is an equally effective strategy for
both business acquisition and retention.
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