Email Microtargeting
By David Moceri

Email marketing is undergoing rapid changes. Now, more than ever, both the creative and demographic selection and targeting of a message must be highly relevant and qualified.

Microtargeting has become a valued strategy. At VIBEdirect, we have seen the industry withstand incredible changes based on bandwidth, creative, message perception and the fickle marketing factors that affect both open and click through rates with today's campaigns.

Consumers received an average of 3 marketing related emails per month in 1999. This number is expected to jump to over 130 marketing related emails per month by 2005 due to the success rate of email marketing and the number of companies sending optin email. The problem is that this trend has caused email open rates to drop.

In the past, our success had been built on wholesaling opt-in email campaigns to brokers and agencies. But as business conditions changed, we evolved by providing our clients with a microtargeted approach for cost effective results and a positive return on investment. As a result, we have maintained a sustained, strong period of growth.

Our opt-in lists offer marketers a "politically correct" way to reach their target audience on the net. While using bulk e-mail lists is cheaper, the practice in itself is extremely controversial. You must be very careful when considering using bulk e-mail to market your wares on the Internet. This can lead to some unexpected and unwanted results. For example, some of your recipients may decide to "flame" you by clogging up your e-mail system with angry responses to your marketing message. Other recipients will complain to your Internet Service Provider, who may decide to discontinue your account.

We have more than 2,000 opt-in lists with more than 40 million unique names to choose from. All of our email addresses are ALL opt-in from a variety of quality web sites, banner ads, e-surveys & e-zine lists.

The Power of Microtargeting
Email microtargeting is really a distinct form of "niche" marketing, differentiating consumers by segmenting them into identifiable, targeted groups. It's the depth of relationships that counts, not the quantity. Studies show that closer relationships increase the likelihood that email advertising will make an impact.

For the higher quality (more targeted and uniform) audience, advertisers have traditionally paid a higher cost per impression, although the overall cost for advertisers is lower with email campaigns since the number of impressions is lower. In addition, the ability to modify and adapt the creative to confront rapidly changing marketing conditions makes this medium especially attractive and cost effective.

Our microtargeting approach has been very powerful. This strategy focuses on increasing market share--that is, on selling a product to as much of the market as possible. Once a product succeeds on a microtargeting level, we can eventually modify it to appeal to a larger group. When properly and effectively executed, microtargeting leads back to the masses.

Instead of trying to reach the greatest number of people, microtargeting focuses on earning more of an individual customer's business. This strategy doesn't target groups of customers, it targets units of one.

The foundation of our microtargeting approach lies in the idea that 80% of a company's business comes from 20% of its customers. The most active frequent fliers account for the bulk of the airline profit. So, rather than aiming to reach all possible fliers, airlines realize they can more efficiently market themselves by trying to win over the top level, and by encouraging those frequent fliers to fly as frequently with them as possible.

Our microtargeting email practices help businesses provide better, more personal services. It is an equally effective strategy for both business acquisition and retention.

About the Author

David Moceri is President and CEO of VIBE Direct Media, a full service online marketing agency. A complete description of VIBE Direct Media services can be viewed at www.vibedirect.com.

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