Email Marketing Popularity

Do most companies use email? Do they test and track results? JupiterResearch reported that 71% of U.S. online advertisers used email marketing in 2004, merely 6 percentage points less than the most popular online marketing strategy (paid search at 77%). An additional 12% planned to start email marketing in 2005.

While most marketers use email, few of them bother to test and track their messages. MarketingSherpa surveyed U.S. email marketers and found that 24% do not track open rates; 31% do not track click-through rates; and 52% do not track conversion rates. The conclusion was that marketers need to find out what works and what doesn't or they risk losing prospects and customers.

The Email Delivery Challenge

Today's email marketers face a dilemma. While both consumers and commercial customers want vendors to communicate by email, they are overwhelmed with too many irrelevant email messages. The result is that email users are reading fewer messages and deleting messages from an unknown source.

Email marketers face a daunting challenge: They must use email to satisfy customer demands, yet it is an up-hill struggle to get messages delivered and read.

Recent research from Return Path shows that 21 percent of permission-based emails did not get delivered during the first half of 2005, a slight improvement over 2004, but worse than 2003 and 2002.

The slight improvement may be due to the current emphasis on increasing email deliverability with the new integrated message management services and managed email security service providers. Another reason might be the new authentication standards imposed by the ISPs (Internet service providers).

However, email deliverability remains a challenge for marketers due to spam filters and email users' overstuffed mailboxes. The latest fix might be an electronic equivalent of a postage stamp for guaranteed delivery. In February, AOL signed an agreement to use Goodmail's CertifiedEmail program, which requires senders to pay a per-message fee that guarantees inbox delivery with images and links enabled. Yahoo! also plans to use the Goodmail system later this year.

The AOL-Goodmail agreement covers approximately 21 million email addresses. Goodmail has strict requirements so the spam threat is practically non existent. While Goodmail is voluntary, even those who do not join stand to gain because it will force others to clean up their lists in order to remain competitive with those who do join.

AOL-Goodmail

AOL's Goodmail program starts in March. Despite original statements to the contrary, AOL will continue to use its enhanced whitelist, allowing inbox placement with links and images enabled for senders who achieve the lowest complaint numbers. To get on the enhanced whitelist, senders must meet stringent conditions, tracking delivery closely with an AOL test account or a third-party service. Goodmail's Acceptable Use Policy closely resembles AOL's standards for the enhanced whitelist.

Following are some of the rules for the Goodmail program:

• Opt-in address only, no prospecting or acquisition campaigns, co-registration only if address is added to one list at a time
• Six-month sending history with dedicated U.S. or Canadian IP only
• 30-day active period for unsubscribe links
• Complaint threshold below 2,200 per 1 million email messages
• Background checks
• High reputation score

Here's How It Works

Goodmail inserts an X-header (line of code) in the email header. When the receiving server recognizes the code, it routes the message directly to the inbox.

The code (called a token) is one factor that differentiates Goodmail from other delivery-assurance, reputation or certification services. Each email message gets a unique token that the sender and Goodmail use to track delivery.

Will It Take?

Critics say there is a risk of alienating both email users and the companies that send email. That's because the system would also apply to individual commercial messages users wish to receive, such as order confirmations and sale/coupon notices.

Additionally, such a system might be at odds with the proposed "Net neutrality" legislation, which would prohibit Internet access providers from giving preferential status to some providers of content and not to others. The reason for concern -- companies that can't or won't pay such fees would find it hard to reach existing customers or attract new customers, jeopardizing the openness of the Internet.

Pricing structures are yet to be publicly announced, but users can anticipate a one-time application fee plus per-message fees estimated at 1/4 to 1 cent. It remains to be seen whether or not the credibility with recipients and better ROI will outweigh the cost of Goodmail.