N5R.com Stops Charging For E-Mail Deployment

Share this content:
Canadian interactive agency N5R.com Inc. is replacing cost-per-e-mail rates with cost-per-click across its roster of clients, including Procter & Gamble, Johnson & Johnson, Hershey Foods, Staples and Apple Computer.


With this move, the agency no longer will charge clients for e-mail deployment.


"There are no margins left in e-mail deployment because DoubleClick has commoditized it," said Roman Bodnarchuk, CEO of N5R, Toronto. "E-mail is now a loss leader. DoubleClick lowered the price to the bottom.


"The implication is the whole industry will have to change the way that banner ads did. Google is extremely successful because they use a pay-per-click model, not cost-per-impression."


This fee-based compensation plan entails a sharing of risk, but may cut marketing costs on e-mails. Suppose N5R sends 100,000 e-mails on behalf of a client. Seventy percent open it but only 15 percent click on a link. The agency will charge the client only for the 15,000 people who clicked on the link.


N5R's new model will make interactive agencies more accountable for results, Bodnarchuk said. Results will be transparent to clients. And it is intended to make N5R more competitive in the agency business.


Not all clients will be forced to use this model. Current clients can stay on the existing plan or switch.


"We'll use this model with all clients that want it," Bodnarchuk said. "Most companies will save up to 80 percent on e-mail deployment, so we expect most to sign up for it."


Loading links....

Sign up to our newsletters

Company of the Week

Since 1985, Melissa Data has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa Data offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here