Wednesday, November 29, 2006

Creative Rules


Creative rules
November 29, 2006

Keeping it simple and offering an eye-catching design are winners in email marketing, reports Susie Harwood.

Brands invest a lot of money in making sure their web sites look good and are easy to navigate, using tools such as usability testing and eye tracking, but few put equal time and energy into designing their emails.


So, what makes the perfect email? The short answer is one that looks appealing, contains compelling content and includes an interactive element to engage the brand's target audience. Sounds simple, but, in reality, designing a great marketing email or newsletter is a lot more complicated and technical.

The design, structure and layout of the message doesn't just simply affect whether customers choose to interact with it. Creative can also have a huge impact on whether an email is actually delivered and how it renders - how it looks, depending on which email system the customer is using - and it can even effect the success of future campaigns.

"I'd argue that design and layout in email is more important than in web build," says Dela Quist, chief executive officer of email specialist Alchemy Worx, whose clients include Sainsbury's Bank and Carlsberg. "The reason is, there is effectively only one client in web, which is Internet Explorer, and people don't optimise for anything else. In email, I can count over 30 clients and each of them renders HTML differently - that's why it's so important."

Brands therefore need to know which email systems are used by the clients on their database and test the email design with each and every one. There are tools available that automate this process. Email service provider Bluestreak, which counts Emap and Toptable.co.uk among its customers, has a partnership with technology company Return Path, and has integrated its technology with the Return Path tool that enables emails to be viewed across all the main email systems.

Dax Hamman, international operations director at Bluestreak, says it is possible to come up with creative that works for a range of clients. "The key thing is to code for the lowest common denominator, keep it simple and have an internal testing process in place." He also points out that brands often rely on the person who codes their site to code their email marketing, but, he argues, "they are very different disciplines".

Quist agrees. While web design has come on a long way and there are new techniques, flashy design tools and content management systems, he thinks the best approach to email coding is to keep it simple. "Best practice requires hand-coding your HTML. It's labour-intensive and requires more time, but we have found there is no real way around the problem," he explains, adding that this can make it difficult to find really good email designers as they have to be prepared to go back to basics.

Another issue is that including certain elements in email creative can prevent it being delivered to inboxes. Many ISPs have spam filters that automatically block the active scripts often used by spammers and hackers, so Quist recommends avoiding using "clever stuff like Javascript" as it significantly increases the chance of an email being blocked.

On top of that, usability research from both Foviance and User Vision reveals that customers don't like things that flash or move anyway. "Our eye-tracking research showed that people don't look at these things as they look like ads, so they don't think it is of relevance to them," points out Emma Kirk, strategic director at User Vision.

Gemma Le Marquer, head of CRM at Lastminute.com, which runs a comprehensive email-marketing programme, agrees: "We don't tend to use any Flash creative at all in our emails. We haven't found it adds any benefit and it can be quite irritating for people." She says the company aims to keep email file sizes to a minimum, so people don't have trouble downloading them. If it takes too long to load, customers are likely to delete the email without looking at it.
Different goals

Technical issues aside, what creative and layout does work well in email? Simone Barratt, managing director of e-Dialog UK, which manages email campaigns for Boots, Tesco.com and British Airways, says there is no such thing as a perfect email as every one will have a different goal. "The perfect email for BA might be very different from the perfect email for Tesco."
However, there are some things that work well in general, regardless of the objective of the email, and, equally, others that don't work. "The things that make a web site difficult to use are exactly the same for email," says Kirk.

User Vision's research revealed that, unsurprisingly, users often start in the top left of an email and scan them from top to bottom, so a clear layout, with elements such as headings, lists and tables that are easy to scan are important.

"It is essential to break the email into different content types in the same way as web sites," says Mark Gristock, head of marketing at usability specialist Foviance. "The use of images is great, but not too many. There is far too much emphasis on graphics, but there should be a good combination of text and images," he adds. This is especially important as some email clients include automatic image-blockers, so users need to be able to get the main gist of what an email is about without the images, or they will simply delete it.

The most important content in an email is what is shown above 'the fold' - what users can see when they open the email without having to scroll down - as this is what will influence their decision to read on. Lastminute.com always uses a striking image above the fold, along with a headline statement, as well as navigation to the rest of the email and a search box that takes users straight to results for their search on the site. "We have the functionality and interactivity right up front. It's kind of the newsletter in a nutshell," says Le Marquer.

Quist suggests thinking of the top left-hand corner of an email as like the contents page of a magazine, so users can quickly find or jump to the most relevant content. Gristock says this is particularly important in the case of longer emails.

However, somewhat surprisingly, the length of an email has no significant impact on click-through rates. Foviance found that if the design is good, users are happy to scan through even long emails, and are comfortable using hyperlinks to move between areas of content. It also discovered that people respond well to aspirational greetings. Personalisation is advisable where possible, but appropriate, impersonal, friendly greetings, such as Expedia's 'Dear Traveller' tested extremely well.

Similar branding
Familiarity is also important for brands that communicate with customers regularly via a weekly email newsletter. A similar design and branding to the web site, even using elements from the site such as navigational bars or search boxes, can make customers feel more comfortable. This ensures that, if they do click through to the web site, they won't be completely surprised by what they see.


Templates can also work well for regular newsletters. "There is a good reason why magazines put things in the same place week in, week out. Familiarity helps to breed higher readership as people know where to find their favourite bit," says Quist.

Lastminute uses a template for its newsletters. "We have certain things in certain places every week, so our readers understand what to look for and where things are, but it gives us flexibility to still be themed and to keep the pace and content different. You need to have the familiarity, but crossed with fresh content; otherwise it becomes dull and like wallpaper," says Le Marquer.
But, while templates and more in-depth content can work well for newsletters, they may not be as appropriate for one-off offer-based emails or news alerts, which goes back to Barratt's point about it being important to identify the goal or objective of the email. Le Marquer says Lastminute has a completely different approach to creative for more tactical campaigns, which are single-minded messages that get straight to the point and are more likely to contain just one image.

There are also some things that definitely don't work in email design. User Vision's eye-tracking testing revealed that brands should avoid presenting information as headings or banners that appear as clickable elements. Users can fixate on these. Kirk says that during user testing, they came across a navigation bar at the top of an email newsletter, which had been placed there to make it look like the web site, but it had been disabled and couldn't be clicked on. "If you are going to have something like that, you have got to make sure the elements are clickable, otherwise it just frustrates everyone," she says. Graphical content, meanwhile, should be presented as active links where possible because consumers often try to click on them to progress to the main web site.

Hand coding, eye tracking and user testing may all seem like a lot of effort for a channel that is likely to command only a very small proportion of overall spend, but the rewards for getting email creative right are huge. Foviance's research shows that 67 per cent of people have actually acted on something they've received in an email newsletter. Chances are, if you get someone to interact with an email once, they will read your email next time. Not only will this drive sales and create brand loyalty with the customer, but it could also impact future campaigns.
Hamman points out that most large ISPs use recency filters and by monitoring emails closely they can identify which emails got low response rates and automatically redirect them to junk mail folders. "Getting the creative and content right so people interact is not just important now, but also important for the success of future campaigns," he adds.

FOVIANCE'S TIPS ON EMAIL
Foviance carried out user testing on a number of emails and came up with the following tips.
"Everyone knows how important it is to get the title and sender right, and our eye-tracking results confirmed this. It's the first place people look to identify whether an email should be opened.

"However, what isn't widely appreciated is how little space you have in the preview pane to engage with the audience. With 78 per cent of people using preview panes at work to scan email content, we have to get that right.

"Combining the preview panes for the two most popular ways of accessing email at work (Hotmail and Outlook) shows how little space we have to work with (see top image).

"This doesn't mean you have to get all the information across in that space, but enough to allow people to scan the preview pane and decide whether the email is relevant.

"As it is such a low-cost, flexible medium, there seems to be a general lack of focus on making email as targeted and effective as it could be. Lessons need to be learnt from the direct marketing industry - there are many simple pointers that should be applied to email.

"For example, people respond well to aspirational greetings and personalisation is recommended.

"It's surprising to note that the length of an email is irrelevant to click-through rate. In fact, longer emails tend to perform better, although this may be down to the increased variety of content. The key is to break up content to facilitate scanning - the easier it is to determine which part of the email is relevant, the greater the chance of success (see middle image).
White space is also vital. Our eye-tracking results revealed how effective spacing is in drawing the eye to key content. The more crowded an email, the more difficult it is for the reader to prioritise information (see bottom image).

IMPACT OF DESIGN ON RENDERING
How well an email has been structured doesn't just have an impact on how many people interact with it.


Design also has a huge effect on technical issues such as deliverability and how an email renders, since html can look different depending on which email client is being viewed in, for example, Hotmail, Outlook, gmail, Yahoo Mail, etc.

So, it is vital to test emails with a variety of clients. Email service provider Bluestreak uses a tool from partner Return Path to do this.

The images above illustrate how different Bluestreak client Grazia's newsletters can look when seen through different email clients. The red line shows what is above the fold - what viewers will see on their screen without having to scroll down.

Thursday, November 16, 2006

Consumers more receptive to targeted ads (Netimperative)

Consumers more receptive to targeted ads (Netimperative)

Emerging digital channels represent a huge opportunity for advertisers as consumers become more digital savvy, according to a new consumer survey.

The study, commissioned by digital marketing provider Bluestreak, reveals consumer behaviour and attitudes towards emerging technologies including podcasts, text messages (SMS), RSS, blogs and message boards as well as the more traditional email platform. Findings show that marketers have a huge opportunity on emerging platforms, as well as email, as adoption rate increases and consumer attitudes towards targeted, relevant, permission-based advertising becomes more accepting.

Doug Anderson, President, Bluestreak, said the study “intends to deliver for the first time a clear understanding of the actual consumer behaviours and attitudes regarding use of each channel. Results from this unique study shed light on which emerging technologies should have first look when a marketer is creating a multi-channel marketing budget.”


Key findings:

Rate of Adoption
The rate of adoption for new communication technologies represents a huge opportunity for marketers to expand their online investments into these emerging channels. 100 percent of respondents currently use email compared to 88 percent using text messaging; 71 percent using message boards; 63 percent using blogs; 36 percent using podcasting and 28 percent using RSS.

Attitudes towards Advertising
There’s a growing acceptance of advertising as the trade-off for good content and a further willingness to accept ads and "sponsored" content as long as the information is relevant and high-quality. This is yet another call for marketers to develop and deliver a one-to-one communication with their consumers. As always, over-communicating can have an adverse effect both on the marketer's brand and their bottom line. The following outlines some of the attitudinal findings regarding advertising on emerging platforms

Ad Quantity
o Consumers mostly feel that the level of or quantity of advertising on these channels is appropriate. When it comes to blogs, message boards and podcasting, the majority of respondents think that the number of ads is appropriate (55, 55 and 61 percent respectively). Slightly fewer, 48 percent, believe the same for RSS

o The proliferation of sponsored channels seems to have little to no impact on consumers’ usage (70 percent would keep reading a blog they know is sponsored, 66 percent would keep reading a sponsored message board)

o However, text messaging advertising is cited as the most unpopular form of advertising communication among these five emerging channels (77 percent of respondents say there is too much text advertising and 80 percent feel negatively towards text message advertisers)
Ad Quality

o The quality of advertising could be improved across channels according to consumers, with a majority feeling the ads are either “random” “get in the way” or “are not directed to me”

o Although consumers accept the existence of advertising, most do not respond unless they feel the offer is "personalized" or "useful"

o Although podcasting is included in this criticism, it also had the highest score among its peer set on relevance/personalization with 25 percent feeling the ads accomplished that goal
Ad Performanceo The strongest performance among these platforms is with permission-based emails (if an email is permission-based, 31 percent of respondents will open it 91-100 percent of the time and 41 percent will open it 61 to 90 percent of the time)

o After opening a permission-based email, 83 percent of respondents said they clicked on the website, 69 percent said they made an online purchase and 56 percent made a purchase in a retail store

o Demographic data revealed that the 35+ age group tends to be more responsive to online marketing offers

The Downside: Spam, Identity Theft and Viruses
Consumers are mainly concerned about viruses, identity theft and spyware as byproducts of using such channels (64, 56 and 53 percent respectively). Spam concerns were listed below these at 44 percent, perhaps demonstrating that consumers have caught on to the real threats of the Web. However, the research shows that the industry needs to do a better job of explaining spam, as respondents still consider “emails they once signed up for but no longer want” as spam.

The Emerging Digital Channels: Consumer Adoption, Attitudes & Behavior report was conducted for Bluestreak in September, 2006 by independent firm ROI Research.

The study was conducted among 1,000 consumers from an eRewards’ panel of over 1.5 million households and includes respondents who use email and at least one of the other five emerging technologies (RSS, Text Messaging, Blogs, Message Boards and Podcasting). At 95% confidence interval, a sample size of 996 has a sampling error of 3.1%.

Wednesday, November 08, 2006

New Media Age: Email is most accepted channel for permission based marketing

Email remains the most accepted new media channel for permission-based marketing across the UK and US, finds research from Bluestreak.

The digital marketing technology provider published findings into adoption levels and attitudes towards emerging technologies like RSS, SMS, blogs, message boards and podcasts.

While such new technologies were found to have already established high take-up rates, with 36% using podcasts and 28% using RSS acreoss the US - email still reigned as the most popular, with 100% adoption.

A third of permission-based emails are opened, leading to an 83% clickthrough rate, the survey found. The report which questioned 1000 people, warned that while email marketing is currently enjoying great success, an uncertain future lies ahead.

"When email applications first started removing pictures from emails, marketers quickly found a way around this. But new changes such as deactivating links are a step too far," said Dax Hamman, Bluestreak's international operations manager.

After email, SMS was found to have the highest adoption rate among users: 95% in the UK and 88% in the US. However, a culture of communicating via SMS doesn't reflect its effectiveness as a marketing tool, said Bluestreak. US respondents named SMS marketing as the most unpopular form of ad communication, with 80% saying they felt negatively towards advertisers targeting them in this way.

Source: NMA 9th November 2006

Saturday, November 04, 2006

Technology Weekly: Email best practices: follow the leader

Dax Hamman, international operations manager at Bluestreak, offers some practical advice on how to execute a successful email marketing programme.

The challenges
It’s not easy being an email marketer. These days, ISPs are pressured to aggressively block and filter your messages. Any eye-catching images and hyperlinks (in other words, anything likely to grab your customer’s attention) are disabled in major email applications like Outlook, Hotmail, Yahoo! and AOL. Customers are becoming highly selective when it comes to email and only open messages when the offer is extremely relevant and very timely. Fraud, “phishing” and spam continue to threaten and frustrate the general public, while emerging channels like RSS and SMS are competing for your media time. Finally, because the email channel is maturing so too are email lists. If most of your list is comprised of old email addresses, a natural deterioration of open rates occurs.

Boosting your open rates
So what’s an email marketer to do? Email open rates are good indicators of marketers’ relationships with their customers in their email database, but image blocking means they can only really be considered as trend data rather than as a single campaign success measurement. Quite simply, an email from a trusted provider is more likely to be opened. Email leaders tend to be from travel & hospitality, publishers and financial services verticals while telcos & ISPs are notably behind market average. However, no matter what your industry, research shows that email marketing performance depends on the individual company’s practices more than the industry they represent.

Good practices include attention to key factors like the from address, the subject line, and email communication frequency. Our customers often see significant boosts in open rates by testing multiple versions of the subject line and from address.

Getting to the click
Email click rates indicate the effectiveness of the message, content and creative, in engaging the customer. It represents a click-through to the offer inside the email (as opposed to open rate which means just opening the email). Bluestreak’s email leaders enjoyed click rates of about 20 per cent – more than three times the market average while followers trailed the market significantly, by three per cent to five per cent. Leaders in click rates tend to be from the business-to-business, consumer package goods and healthcare verticals. Clubs and memberships, including not-for profit organisations, are close behind. Financial services, albeit ahead of market in open rates, trail significantly when it comes to generating response or clicks.

Good practices to encourage click rates include attention to key factors like email creative, copy, and the actual offer. Email marketers can increase click rates by testing multiple versions such as short versus long copy, different creative layouts and different offers.

Simple economics
Essentially, offering relevant and less intrusive email marketing is about simple economics. People like and welcome sales and discounts. For example, 65 per cent of respondents we polled said they’d be compelled to open an email with a discount offer in the subject line and 51 per cent are tempted to click into emails touting free products. The first lesson here is, of course, be prepared to make these kinds of offers, and second, make sure you promote it in the subject line. Subject lines that do not fare as well include “limited time offers” (only 31 per cent said they’d be compelled to open it) and the inclusion of someone’s name where just 10 per cent are flattered enough to look at the offer.

Secondly, it’s about timing (and a little luck). If the product happens to be wanted at that time you’re likely to convert so day of the week and time of day is crucial. Email marketing activity practically comes to a stop during the weekend with less than one per cent of the total volume executed in that timeframe. Mailings sent on Sunday generate very low response rates and while Saturday performance tends to be lower than a weekday, it can still be fruitful and marketers should at least test sending emails on Saturdays. This adds more than 50 mailing-friendly days during the year.

Finally, message relevance (or the impact of the messages once opened) can actually be calculated as follows:

(Unique clicks divided by total unique clicks) * 100 = Disaffection

This represents the overall attractiveness of the creative, copy, and offer within the message.

Get with the programme
Email is still a key ROI channel, as well as one of the most widely adopted marketing channels, with most organisations seeing it as becoming only more effective. Email usage continues to rise, with 44 per cent of our respondents saying they were on email “constantly” in 2005 as compared to 33 per cent in 2004 and 20 per cent in 2002. But still, only one per cent of marketers’ budgets are dedicated to email programmes – possibly because of some of the challenges listed above. But you can execute a successful email marketing programme – you can be an email leader – by following some of the simple steps outlined above and, above all, testing, testing and more testing to optimize your results.