Email Monetization Strategies

Email Monetization
Strategies Released November 2009 IAB Email Monetization Strategies
The IAB Email Committee has developed these Best Practices. About the IAB Email Committee: The Email Committee's mission is to support and expand the use of email marketing by agencies and marketers. The committee works to address all email monetization related issues and recommends solutions, standards and educational tools as needed. The committee delivers these objectives through industry research, case studies and stakeholder education. A full list of Committee member companies can be found at: http://www.iab.net/email_committee This document can be found on the IAB website at: http://www.iab.net/email_monetization IAB Contact Information: Gina Kim Director of Industry Services, IAB 212-380-4728 Gina.Kim@iab.net
© 2009 Interactive Advertising Bureau -1- IAB Email Monetization Strategies
Table of Contents
Executive Summary ........................................................................... 3
Regulatory Background .................................................................... 5
Email Inventory Types ....................................................................... 6 Newsletters .................................................................................................................... 6 Stand Alone Email Advertising ................................................................................... 10 Emerging Trends: Rich Media/Video......................................................................... 16
Inventory Management................................................................... 19
Data Collection Best Practices .......................................................... 22
© 2009 Interactive Advertising Bureau -2- IAB Email Monetization Strategies
Executive Summary In an era of diminishing revenues - and audiences - from traditional publishing channels like newspapers and magazines, email monetization provides publishers, advertisers and audiences with a modern method of driving revenue, new customer growth and knowledge of new products previously only available via print ads and television. "IAB Email Monetization Strategies" seeks to explain how email monetization works, present best practices and serve as a resource for publishers and marketers who wish to take advantage of email, which is one of the most effective direct and brand marketing mediums. The increased emphasis on email is reflected in the marketplace overall: though marketers worldwide are expected to reduce spending on offline media by the greatest percentage of any media channel this year, 59% of marketers surveyed indicated that they would be 1increasing their allocation to email marketing, leading the increases to any other channel. Email is widely recognized as an important medium for building a relationship with consumers. A Ketchum study cites 80% of marketers agree that email leads the way as the media channel that performs most strongly. Further research confirms the importance of email in the eyes of 2the consumer: Of US Internet users, 42% use email newsletters and 59% of email users spend 20 minutes or more with permission email weekly. Marketing-based permission email (defined as anything a user opts-in for) accounts for 26% of time spent with email, second only 3to communication with friends and family. Most importantly, 58% of consumers believe email 4is a great way for companies to stay in touch with them and 57% say that receiving email from a company they did business with gives them a more positive impression of the 5company. Also, consumers ranked email ahead of traditional media like newspapers, magazines and radio as a good way to learn about new products, making this the ideal 6media channel for advertisers. The recommendations outlined in this document offer best practices and advice for: . Advertisers o Leveraging email newsletters to reach a valuable audience o Using the email channel to test offers and promotions o Driving sales and site registration through stand alone email advertising o Criteria for choosing a email publisher o Emerging trend of video in email campaigns 1 Datran Media, "3rd Annual Mar... [download for more]