DoubleClick: Open Rates Down, Conversion Up

Share this article:
Though e-mail open rates fell for the fifth consecutive quarter, the medium's click-to-conversion rate and order rate rose, according to a DoubleClick E-Mail Solutions study released yesterday.


In its "Q2 2005 E-Mail Trend Report," DoubleClick, New York, found that open rates dropped from 36 percent in second-quarter 2004 to 27.5 percent in the second quarter of this year. Click-through rates also declined slightly from 7.7 percent last year to 7.2 percent for second-quarter 2005.


However, conversion remained strong for the retail and catalog marketers that track purchase activity through DoubleClick's DARTmail. The click-to-purchase conversion rate rose 27.8 percent to 4.6 percent in the second quarter while orders per e-mail delivered rose 18 percent to 0.26 percent.


"It seems as though marketers are getting smarter in all areas of e-mail marketing, including segmentation, targeting, subject lines, message relevancy, calls to action and re-marketing efforts, leading to an increase in the click-to-conversion rate," said Rob Bentley, senior analyst at DoubleClick E-Mail Solutions.


In other news, the average non-bounce rate reached an all-time high of 92.1 percent. The Retail and Catalog, Consumer Publisher and Business Publisher sectors had the lowest bounce rates in the quarter.


"The non-bounce rate is mainly a list hygiene issue, and marketers continue to get better with this by better managing bounces and unsubscribes [removing them from their files] as well as improving their list acquisition methods," Bentley said.


Despite a 14 percent drop in average order size from $93 in second-quarter 2004 to $80 this quarter, revenue generated per e-mail remained at 20 cents.


Image blocking by ISPs affected open rates, the report said. Because a one-pixel image must be rendered for an e-mail to be measured as open, image blocking has contributed to declining open rates. Also affecting open rates is the use of old e-mail addresses, which perform worse than new addresses.


Consumers also seem pickier about which e-mails they open.


"As consumers access e-mail more frequently, receive more e-mails and have better technologies to manage those e-mails, they will become more discerning in their open behavior," the report said.


DoubleClick has commissioned a study to look at the branding impact of e-mail marketing and explore how consumer behavior may be affecting open rates.


Share this article:
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Ramp Introduces Video Platform for Marketers

Ramp Introduces Video Platform for Marketers

The cloud-based platform syncs with marketing automation and capitalizes on user behavior to extend view times.

CMOs Who Take Charge of Digital Make More Money

CMOs Who Take Charge of Digital Make More ...

Chief marketers who usurp the CDO role earn the board's respect, as well as base salaries of $500,000 and up, says a new study.

Microsoft Set to Overtake Yahoo in Ad Revenues

Microsoft Set to Overtake Yahoo in Ad Revenues

Marissa Mayer can take credit for reversing ad declines. Still, her company will fall out of digital's Top 3 by year's end, according to eMarketer.