£9.11 - the value of an email address?In the latest DMA National Benchmarking report (Q207), all contributing ESPs were asked what value their clients could allocate to an email address. The average result came to £9.11 - but how did the DMA come to this figure and is it right to use it to inform your marketing activities? Although rather simplistic, the value allows marketers to:
- Estimate the ‘cost’ of unsubscribe rates and help calculate the true cost of badly targeted campaigns.
- Monitor acquisition campaigns, setting maximum acquisition cost for different channels.
- Quantitate the value of cleaning and ‘update my detail’ campaigns.
- The value of your offering & number of respondents - high involvement products typically carry higher purchase prices meaning the ROI calculations can be influenced significantly by a small number of respondents.
- Lifetime value - measuring immediate transactions ignores the true lifetime value of an address, so the time period over which revenues are calculated can massively influence the figure.
- Your expectations - different companies find different values more acceptable. Niche B2B marketers will invest more acquiring the name of a key contact when compared to a B2C mass marketer.
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