Thursday, March 13, 2008

Direct Marketing Data Costs

Just in from Direct Magazine, this report on the price of data and leads. The article cites a Worldata study called "Winter 2008 List Price Index", and it reports on changes in data costs year-over-year.

Very interesting stuff, especially if you need help in budgeting list costs. Here are some highlights of the study:
  • The cost for e-mail lists is decreasing slightly (by $2 per thousand, while consumer e-mail lists dropped by $3 per thousand).
  • But e-mail lists still remain fairly pricey, at an average cost of $287 per thousand for permission-based B2B marketing and $135 per thousand for B2C permission e-mail.
  • The average cost for Donor lists is $85 per thousand.
  • Business Merchandise Buyer lists go for $118 per thousand while Consumer Merchandise Buyers average $103 per thousand.
  • Consumer Magazine Subscriber list costs average $108 per thousand.
And, this quote from the Direct Magazine article should help you understand what to expect when you are buying lead data.
"Cost-per-lead data, which the Boca Raton, FL-based firm began tracking last quarter, had a slight increase in its pricing, due to jumps in B-to-B leads. Cost-per-lead consumer programs averaged $1.30 per lead, a slight decrease over last quarter, while cost-per-lead B-to-B Programs averaged $4.90 per lead, an increase of 7% over last quarter."
Unfortunately, the study does not include average list costs for compiled data (such as consumer lists from Acxiom or Experian, or business lists from InfoUSA or D&B). Compiled data is definitely a less expensive option. And, Occupant lists (you know the direct mail that is not even addressed to a name, simply to "Occupant" or "Resident") are even cheaper.

Still, this study gives great insight into what's going on in the list/data industry and provides you with an educated guess as to data costs if you are budgeting a direct mail or e-mail campaign.

1 comment:

Ted Grigg said...

When you think about what a good list yields in profits when it works, these list rental charges are relatively small when compared to other associated costs like creative development, postage, printing and lettershop.

For email lists, however, that is a different story.

Precious few of my clients have found email list rentals profitable as acquisition names. The opt-in process is typically very weak for most email rental names. So they rarely work.

Perhaps your experience differs from mine. If so, please let me know.