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FOR IMMEDIATE RELEASE

Worldata releases the Fall 2005 List Price Index
Email list rental prices continue to fall as predicted;
Newsletter list rental files in high demand

 

November 2005, Boca Raton, FL –, Boca Raton, FL –Worldata is pleased to present the Fall 2005 edition of the quarterly reported Worldata List Price Index. The List Price Index tracks price fluctuations, as cost per thousand (CPM), for lists in various categories and has become the barometer of the list industry.

The most recent Worldata List Price Index reflects price variations from October 2004 to October 2005. The lists evaluated are grouped into categories, such as Consumer Book Buyers, Newsletters and Business Merchandise Buyers, to name a few. Information such as Average Price, Lowest List Price, Highest List Price and Exact Dollar Changes are provided. Through charts and graphs, year-to-year price fluctuations can easily be distinguished in this index.

As we approach the last quarter of 2005, a somewhat different terrain is beginning to form. The Summer 2005 List Price Index predicted that Email CPM’s would continue to fall due to new challenges in Email delivery that included Email authentication, image blocking, content filtering, Phishing, and other standards yet to be introduced as ISP’s and ESP’s attempt to control the influx of spam to their subscribers which will perpetuate HTLM delivery and ROI tracking issues. As detailed below, the decrease in Email CPM’s is in fact continuing. Conversely, while prices fluctuate up and down, there is a marked increase in demand for traditional direct mail channels, especially in the area of Newsletter list rental files

COMMENTS:“Last quarter, we forecasted that Email pricing would drop significantly over the next three to six months due to changes in ESP delivery methods. As predicted, Email CPM’s have decreased by as much as $6.00 per thousand. We also anticipated that CPM’s for Consumer Magazines might rise as the desire for more Direct-To-Publisher names increased due to the weaker than expected performance of many files comprised mostly of Agency Sold names. Interestingly enough, demand for Direct-To-Publisher names increased this quarter in many categories including Consumer Magazines and Newsletter list rental– all in the direct mail arena. The Newsletter list rental category continues to grow in strength due to the high price point of the product ($100-$1000 per subscription) and its primary source being direct mail subscriptions. While the CPM for Consumer Magazines has decreased, we can attribute that anomaly to larger list buys, volume discounts and higher than average net name arrangements. The demand for large consumer DTP names is clearly on the rise,” says Ray Tesi, Senior Vice President of Worldata.

With this in mind, the comparison of lists in this Fall 2005 List Price Index to the Fall 2004 List Price Index of a year ago reveals some very significant variations not only in individual categories, but in media types as well as exhibited below:

The Straight Average Graph (Chart 1) in the Worldata List Price Index examines the average price per thousand (PPM) of the lists we have grouped in each category. Triple bars are used in each category for easy comparison of October 2003 and 2004 prices to October 2005 prices.

Overall, PPM averages for October 2005 remain consistent as compared to October 2004. However, specific groups within categories demonstrated high increases worth reporting.

  • Permission Based Business-to-Business Email remains the highest priced category, with an October 2005 straight average price of $281/M, a decrease of $6/M over last year on top of an $8/M last quarter. Many of the highest priced files are being found in the niche BtoB categories, rather than the overall general business oriented lists. A key factor in 2006 will be the impact of email filtering and other delivery changes as it relates to the viability of continued growth in this category.
  • Similarly, Permission Based Business-to-Consumer Email dipped $3.00/M with an October 2005 straight average price of $167/M.
  • Newsletters remains the second highest priced category, with an October 2005 straight average price of $175/M, a $5/M increase from last year, partly attributed to Agency Sold issues and the demand to Direct-To-Publisher names.
  • While the Consumer Magazines category has had a CPM decrease of $5/M, volume in this quarter has actually risen. This can be attributed to larger list buys resulting in volume discounts and higher than average net name arrangements.
  • The Donors category continues to display the lowest overall price, $76/M, an increase of $1/M for the past year. Stability in this Consumer category still represents the “harder to find” donor dollar.

The Straight Dollar Change Graph (Chart 2) shows the precise dollar amount that the average price for each category has changed within the specified 12-month period.

  • The largest price increase occurred with Newsletters with a $5/M increase bringing this category up to 175 from 170 indicating a healthy market that is potentially more in demand and a potential trend as we approach 2006. Public Sector also had an increase of $4/M. This brought the average for this category up to 140 from 136.
  • The largest price decrease occurred in the Permission Based Email Business-to-Business category, which dropped $6/M over the past year. This may indicate the willingness of list owners to drop the list cost of their business files in an effort to increase rentals and revenue.

The Straight Average Percent Dollar Change Graph(Chart 3) takes into consideration the straight average for each category.

  • The heaviest percentage increase occurred in the Newsletters and Public Sector categories with a 2.94% increase.
  • This was followed by a 2.17% increase in the Business Magazines/Controlled category.
  • The Consumer Bookbuyers followed closely with the third highest percentage increase at 2.13%.
  • Consumer Magazines reflects the largest percent decrease at –4.59%.

For over twenty years, the Index has served the Direct Marketing community as the key source for the pricing and trending of all list rental pricing. The Worldata List Price Index provides a comparison of list prices during any given 12-month period and is reported quarterly.

Worldata and its group of companies have been leaders in the direct/interactive marketing services field for over 25 years. Worldata designed its corporate headquarters, located in Boca Raton, Florida, from the ground up. It is the only company offering all services under one roof, including Email and Postal List Management, List Brokerage, Email Transmission and Tracking, Database Marketing Services, Data Hygiene, Change of Address, Merge Purge, Custom Marketing Solutionsand Banner Advertising. Information about Worldata can be found at www.worldata.com or contact Ray Tesi, Senior Vice President, at 800-331-8102 or via email at rtesi@worldata.com.

Chart 1:

The triple bar in each category allows you to compare October 2003 and 2004 list prices to October 2005 prices, as stated in SRDS/MIN listings. Permission Based Email Business-to-Business is the highest priced category, with an October 2005 straight average price of $281/M, a decrease of $6/M over last year. Newsletters are the second highest priced category, with an October 2005 straight average price of $175/M. Donors category continues to display the lowest overall price, $76/M.

Chart 2:

The above graph displays the straight dollar changes for October 2005. The largest price increases occurred with Newsletters with a $5/M increase and Public Sector with an increase of $4/M The Permission Based Email Business-to-Business category fell $6/M.

Chart 3:

The above graph indicates the straight average percent dollar change for each category. The highest percentage change occurred in the Newsletters and Public Sector categories with a 2.94% increase. This is followed by a 2.17 increase in the Business Magazines/Controlled and a 2.13% increase in the Consumer Bookbuyers category.



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Phone: 561 393-8200 - 800 331-8102 - Fax: 561 368-8345 - Email: mail@worldata.com - Web: http://www.worldata.com
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