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DoubleClick Q1 2005 Email Trend Report Highlights Strong Quarter
For Retailers
- Efficacy of Open Rate Metric Continues to Evolve as Image Blocking Becomes
More Prevalent -
NEW YORK, June 23 /PRNewswire-FirstCall/ -- DoubleClick Inc. (NASDAQ:DCLK),
the leading provider of solutions for marketers, advertising agencies and web
publishers, today announced the release of the Q1 2005 Email Trend Report which
shows email to be more productive than ever, with significant increases in the
click-to-purchase conversion rate and orders per email delivered.
The data also shows continuing stability in email marketing performance with
bounce rates at an all time low, and stable click rates over the past three
years of tracking despite a recent decline in open rates. The declining trend
in open rates coincides with, and seems to reflect, the adoption of image
filtering by various ISPs.
This overall strength in email productivity reflects improved list management
and data collection practices, as evidenced by the reduced bounce rates, as
well as improved relevancy in content, reflected in the increased click rates
and conversion rates.
Email Productivity Remains Strong
Following a very successful holiday retail season for email marketers, Q1 was
also very strong for big brand retailers. For Retail and Catalog customers
that track purchase activity through DARTmail, Q1 conversion metrics remained
strong, despite a decline in open rates. The click-to-purchase conversion rate
rose 24.2% (from 3.3%) to 4.1% versus Q1 2004 while orders per email delivered
rose 18.2% (from 0.22%) to 0.26% versus the previous year. Meanwhile, average
order size remained stable ($92 in Q1 2004) to $91 in Q1 2005.
Overall, the data show that despite a dip in open rates, conversions have held
steady demonstrating that when customers are "in-market" they are continuing to
convert on email offers.
Q1 2005 Response Metrics
According to traditional metrics, email marketing remained stable in Q1 2005.
Bounce rates, which were at an all time low at 8.3%, declined in every industry
category that DoubleClick tracks. Although open rates declined from 38.2% in
Q1 2004 to 30.2% in Q1 2005, click rates remained relatively stable, dipping
slightly from 8.4% to 7.9%. This relative stability in click rates, despite
the decline in opens, mirrors the HTML click-to-open ratio (which has increased
from 26.6% to 30.2% from Q1 2004 to Q1 2005). These data demonstrate that
content remains effective in driving click response once an email has been
opened, and show consumers respond to email when they are cyclically "in
market" for particular content for which they have subscribed.
The challenges in maintaining open rates include the adoption of image blocking
filtering mechanisms among many major ISPs and email programs (such as Outlook)
as a response to protect readers from potentially graphical or offensive spam
messages. A side effect of this change is a reduction in the calculated open
rate of emails due to the inability to identify the email as opened unless the
images render. Other technological factors that may be affecting open rates
include the growth of Webmail mailbox size limits spurred by Gmail, and
consumer adoption of bulk and "favorite" folder/filter rules to manage their
increasingly crowded inboxes.
As email marketing becomes more mainstream, file aging may also have an impact
on open rates. Newer names on a customer file tend to be more responsive early
on, and at the same time some long-term subscribers are frequently engaged and
responsive. Understanding these age cohorts on file is a good step toward
understanding increases and declines in open rates and enables marketers to
tailor content appropriately. Marketers should also test different content,
subject lines and offers to these different profiles, and should evaluate how
response rates are indicative of customer value, to maximize the value they
receive from the channel.
Industry-specific Metrics
Bounce rates declined in every category versus Q1 2004 and declined 25.7%
overall. Retail and Catalog (6.2%), Consumer Publisher (6.7%) and Business
Publisher (6.9%) recorded the lowest bounce rates this quarter. Open rates
also declined in every category versus Q1 2004. Business Products and Services
(36.7%), Financial Services (34.3%) and Business Publisher (32.8%) recorded the
highest open rates this quarter.
Click rates remained relatively stable versus the previous year, with half of
the categories that DoubleClick tracks reporting increases and half declining.
Financial Services and Consumer Publisher (both 10.3%) had the highest click
rates this quarter followed by Consumer Products (8.9%) and Travel (8.4).
"This quarter's data demonstrate the continuing effectiveness of email for
communicating with and marketing to customers," said Kevin Mabley, Senior
Director and General Manager of Strategic Services at DoubleClick. "We
consistently see that our best-performing mailers are leveraging historical
response data and all available customer profile data to target customer
mailings to more relevant audiences and segments, while enhancing response and
conversion data through more timely and relevant messages through dynamic
personalization and event-based triggers."
Methodology
The DoubleClick Email Trend Report contains aggregate data from DoubleClick's
DARTmail email delivery technology. The Q1 data are based on billions of
permission-based emails from hundreds of clients. The full results are
available to DoubleClick customers and an executive summary is available at:
http://www.doubleclick.net/us/knowledge
Performance metrics in this release relate to un-weighted averages across all
companies. This is done to provide a measure of average company performance,
due to the fact that very large mailers can bias the overall and category
results.
About DoubleClick Inc.
DoubleClick is the leading provider of solutions for marketers, advertising
agencies and web publishers to plan, execute and analyze their marketing
programs. DoubleClick's online advertising, email marketing and database
marketing solutions help clients yield the highest return on their marketing
dollar. In addition, the company's marketing analytics solutions help clients
measure performance within and across channels. DoubleClick Inc. has global
headquarters in New York City and maintains 22 offices around the world.
CONTACT:
Dave Frankland
DoubleClick
212.381.5629
DATASOURCE: DoubleClick Inc.
CONTACT: Dave Frankland of DoubleClick, +1-212-381-5629,
Web site: http://www.doubleclick.net/us/knowledge