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FOR IMMEDIATE RELEASE
Worldata releases the Spring 2006 List Price Index
Email List Prices Experience a Significant Drop while
Donors & Newsletter List Prices Increase Significantly
March 2006, Boca Raton, FL –
Worldata’s 2006 List Price Index, the barometer for the pricing and trending of all list rental pricing,shows a decrease in b-to-b and b-to-c e-mail list prices of $3/M and $4/M respectively. At the same time, Public Sector lists experienced an increase of $4/M indicating a healthy market that is potentially more in demand.
For over twenty years, Worldata, the leaders in the direct/interactive marketing services field, have produced the Worldata List Price Index, which provides a comparison of list prices during any given 12-month period and is reported quarterly. 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 March 2005 to March 2006. 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.
The Summer 2005 List Price Index predicted that Email CPM’s would continue to fall due to new challenges in Email delivery. Those challenges 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, other categories in the traditional direct mail area have remained steady or increased.
COMMENTS:“Over the last 2 quarters, we forecasted that Email pricing would drop significantly over the next three to six months due to changes in ISP and ESP delivery methods. As predicted, Email CPM’s have decreased by as much as $4.00 per thousand in this quarter alone. Due to the rising number of Email lists that are coming on to the market and lower-than-average response rates, many list owners are finding it necessary to compete with negotiated CPM’s and off-ratecard pricing. 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. While the demand is still high, Consumer Magazine list prices seem to have stabilized. The Newsletter list rental category once again 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. The demand for large consumer DTP names is clearly still in demand,” says Ray Tesi, Senior Vice-President of Worldata.
With this in mind, the comparison of lists in this Spring 2006 List Price Index to the Spring 2005 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 March 2004 and 2005 prices to March 2006 prices.
Overall, PPM averages for March 2006 remain consistent as compared to March 2005. However, specific groups within categories demonstrated high increases worth reporting.
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Permission Based Email Business-to-Business is the highest priced category, with a March 2006 straight average price of $277/M, a decrease of $3/M over last year. The decreased pricing in the Business-to-Business Email category reflects a growth in the number of BtoB Email lists available for rental. The increased supply has led to more choices for mailers and has created price pressure within the marketplace.
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Permission Based Email Business-to-Consumer, with a March 2006 straight average price of $163/M, has the largest decrease of the time period of $4/M over last year. The decreased pricing in the Business-to-Consumer Email category is a further indication that the number of BtoC Email lists available for rental is also continuing to rise forcing CPM’s downward.
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.
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The largest price decrease occurred in the Permission-based Email Business-to-Consumer category, which dropped $4/M over the past year. This may indicate the willingness of list owners to drop the list cost of their rental files in an effort to increase rentals and revenue to compete with negotiated CPM’s and off-ratecard pricing.
The Straight Average Percent Dollar Change Graph (Chart 3) takes into consideration the straight average for each category.
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The heaviest percentage increase occurred in the Donors category with a 3.95% increase.
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This was followed by a 2.94% increase in the Public Sector category.
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Attendees/Members reflects the largest percent decrease at –2.54%.
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 March 2004 and 2005 list prices to March 2006 prices, as stated in SRDS/MIN listings. Permission Based Email Business-to-Business is the highest priced category, with a March 2006 straight average price of $277/M, a decrease of $3/M over last year. Newsletters is the second highest priced category, with an March 2006 straight average price of $178/M, an increase of $3/M over last year.The Donors category continues to display the lowest overall price of $79, an increase of $3/M over last year.
Chart 2:
The above graph displays the straight dollar changes for March 2006. The largest price increases occurred with Public Sector with a $4/M increase. Donors and Newsletters both had an increase of $3/M. Permission-based Email Business-to-consumer lists dropped $4/M, while Attendees/Members and Permission-based Email Business-to-Business both dropped $3/M.
Chart 3:
The above graph indicates the straight average percent dollar change for each category. The heaviest percentage increase occurred in the Donors category with a 3.95% increase. This was followed by a 2.94% increase in the Public Sector category. Attendees/Members reflects the largest percent decrease at –2.54%.
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