Criteo state of email marketing 2015

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Email marketing has been instrumental in driving the growth of eCommerce over the last decade. Advertisers know they can rely on email as over 80% of the emails are opened/read within 24 hours of delivery. This report highlights how marketers can significantly improve results from their email campaigns by switching from static emails to personalized email marketing that delivers highly relevant messages at the individual level.

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Criteo state of email marketing 2015

  1. 1. State of Email Marketing Helping marketers get more personal with today’s digital shoppers Q4 2015
  2. 2. Email marketing has been instrumental in driving the growth of eCommerce over the last decade. Marketers are now seeing even better results with personalized email marketing as it addresses concerns about unsolicited emails – and allows them to be more engaging, personal and smarter at meeting consumer needs. • Email still boasts enviable performance metrics with conversion rates up to 5x higher than social and 1.5x higher than non- personalized display ads. • With 2/3 of all emails now being opened on mobile, personalized email marketing is uniquely adapted to engage with today’s device-hopping consumers. • Email is the philosopher’s stone to cross-device tracking. The email ID is a unique identifier, and email marketing can help advertisers better understand their customers’ cross-device behavior as they move across devices, browsers and apps. • Personalized email is the new frontier. By partnering with the right email service provider, advertisers can automate their email campaigns for greater efficiency while still delivering highly relevant and personalized messages to their customers. Executive Summary Copyright © 2015 Criteo
  3. 3. Marketers trust email to keep consumers engaged #1 @
  4. 4. Email is a major channel for eCommerce marketing • 205 billion emails are sent/received by 2.6 billion users every day. On average, a user receives 88 business emails in a day. • One-third of the world population will be using email by 2019. This means 2.9 billion email users sending 246 billion emails every day in 2019. Source: The Radicati Group, Email Statistics Report, 2015-19Copyright © 2015 Criteo Global email users and daily email traffic, 2015-19 113 116 120 125 129 205 215 225 235 246 2.4 2.6 2.8 3 0 100 200 300 2015 2016 2017 2018 2019 Billions Business emails sent/received per day Consumer emails sent/received per day Email Users 2.6 2.8 2.9
  5. 5. Email marketing spend and revenue is second only to search • Email marketing accounts for a significant portion of digital marketing spend, second only to search. • Email marketing delivers better ROI than search, display and social ads. The 17% share of marketing spend on email translates to a higher 24% share of revenues. Source: eTail and Criteo, Trends in Digital Retail Report, 2015Copyright © 2015 Criteo Digital marketing spend vs. revenue generated for advertisers, 2014 Revenue contributionMarketing spend Mobile 8% Search 43% Other 11% Social 9% Display 12% Email 17% Other 10% Mobile 13% Search 38% Social 5% Display 10% Email 24%
  6. 6. Marketers use email for both acquisition and retention • Email marketing is a key driver for acquisition, and marketers rate it most important for retention. • In addition to sales, email marketing also generates other important actions from customers including registrations inquiries, and store visits. • Marketers also consider “retargeting” an important channel for retention, not just for acquisition. Source: eTail and Criteo, Trends in Digital Retail Report, 2015Copyright © 2015 Criteo Digital acquisition drivers 81% Paid Search 72% Organic Search 66% Email Marketing 41% Affiliates 35% Social Media 33% Retargeting 14% Market Places 11% CSE 9% Mobile Marketing 7% In-Store Sales & Promotions 6% Advertising Digital retention drivers 82% Email Marketing 49% Customer Service/Support 33% Retargeting 29% Loyalty/Rewards Programs 26% Personalization 22% Social Media 4% Other Digital acquisition and retention drivers for marketers
  7. 7. Email marketing CTRs outperform other channels • Click-through rates for promotional emails are higher than for display, social, and search ads. • Email usage is second only to social networks in terms of time spent online by users*. On average, a user spends 48 minutes on social networks and 28 minutes on email every day. Copyright © 2015 Criteo Click-through rates by channel, global average 0.3% 0.6% 2.3% 7.3% 0.0% 2.0% 4.0% 6.0% 8.0% Display Social Search Email Source: Marin Global Digital Advertising Index, 2014 *GFK/IAB Original Digital Video Consumer Study, April 2015
  8. 8. Email marketing is highly effective at delivering revenue results • For every US$1 spent on email marketing, the average return is US$40 i.e., 2x the ROI from Internet display advertising. • Email marketing also results in incremental sales. Marketers generate incremental sales by sending personalized offers of related/companion products to clients based on their recent purchase. Source: Direct Marketing Association, 2014Copyright © 2015 Criteo ROI per US$1 spent by channel, 2014 $40.0 $22.2 $19.7 $17.1 $7.3 Email SEO Internet Display Keyword Ads Catalogs US$
  9. 9. Personalized email can dramatically increase customer engagement #2
  10. 10. Use consumers’ browsing data to deliver relevant and personalized content Advantages of using personalized* email include: • Open rates of up to 4X and click- through rates of up to 5X higher than non-personalized email. • Access to real-time campaign statistics and reporting. • Ensure full-user transparency. • Can help to identify users across devices, browsers and apps. Copyright © 2015 Criteo How personalized* email works? Note: Personalized Email denotes Criteo Email Source: Criteo 1 2 3 4 5 Identification of an “opted-in” user via cookie. Collection of user’s browsing data. Matching of the user with the email partners’ databases. Sending of the personalized email. Personal data is never stored. Redirection of the user back to the website, driving conversions. @
  11. 11. Personalized emails keep consumers interested in your message • Click-through rates for personalized emails are considerably higher than for non-personalized emails. • Highly personalized email marketing puts the consumer at the center and uses dynamic content to deliver tailored messages at the individual level. This leads to significantly higher clicks and conversions. Copyright © 2015 Criteo Click-through rates by channel, global average 7.3% 31.0% 0.0% 10.0% 20.0% 30.0% 40.0% Email (Non-Personalized) *Email (Personalized) *Note: Personalized Email denotes Criteo Email Source: Criteo, 1H 2015 and Marin Global Digital Advertising Index, 2014
  12. 12. Use responsive design to engage consumers across devices • 40% of eCommerce transactions now involve the use of multiple devices*. 28% of the time, users make their decision on one device and then purchase via a second device. • With the majority of emails now being opened on mobile, marketers must ensure that consumers don’t find it difficult to read and interact with the email message on their mobile phones. Copyright © 2015 Criteo 2/3 of all emails are opened on mobile DESKTOP 33.0% TABLET 16.9% SMARTPHONE 50.1% Smartphones + Tablets 67% Source: Movable Ink, US Consumer Device Preference Report, Q1 2015 *Criteo State of Mobile Commerce Report, Q2 2015 @ @
  13. 13. Take benefits from high consumer reactivity to email • The high consumer attention/response to email makes it a very effective channel for addressing the high shopping cart and checkout abandonment problem associated with eCommerce. • The rate of cart abandonment was almost 76%, and checkout abandonment rate was over 46% on US eCommerce websites in Q2 2015*. • Following up with a personalized email to website visitors that left after adding products to the cart can help advertisers to win back some of those lost sales. Copyright © 2015 Criteo Most emails are opened/responded within 24 hours 80% % of emails opened in 24 hrs 50% % of email sales in 24 hrs Source: Criteo 1H 2015 *eMarketer (MarketLive Q2 2015, US)
  14. 14. What should you expect from your modern email marketing? #3 @
  15. 15. Get strong results at every stage of the conversion funnel • The average personalized email marketing campaign delivers 25-30% open rate. • The click-through rates are also significantly higher than other channels – including search and non- personalized email marketing. • Email marketing performance is measurable – open rates and click- through rates can be easily tracked. Email campaigns can also be A/B tested to determine their effectiveness. Copyright © 2015 Criteo Personalized email marketing KPIs, 1H 2015* Open Rate 29% Click-Through Rate 31% Conversion Rate 5.1% *Note: Personalized Email denotes Criteo Email Source: Criteo, 1H 2015, Direct marketing Association, 2014
  16. 16. Increase online sales by up to 30% with personalized emails • Conversion rates from personalized email marketing are 5x higher than social media and 1.5x better than display ads. • The conversion rates for advertisers improve significantly, particularly when they send personalized emails to existing customers who visited their website. Copyright © 2015 Criteo Conversion rates by channel, global average 1H 2015 1.0% 3.1% 7.5% 3.5% 5.1% 0.0% 2.0% 4.0% 6.0% 8.0% Social Display Search Non-Personalized Email *Personalized Email *Note: Personalized Email denotes Criteo Email Source: Criteo 1H 2015 and Marin Global Digital Advertising Index 2014
  17. 17. Achieve impressive KPIs across different industry verticals • Regardless of the industry vertical or value of the product/service, majority of eCommerce transactions involve the use of email communication with the customers at some point in the buying process. • A key advantage with emails is that, once downloaded, consumers can read them in the absence of Internet connectivity. Copyright © 2015 Criteo Personalized email marketing KPIs by industry vertical* Average Open Rate Average Click-through Rate Average Conversion Rate Fashion 24% 31% 5.7% Travel 36% 32% 3.8% Beauty 26% 35% 3.4% High-Tech 34% 30% 2.4% Automobile 27% 37% 2.0% Classified 38% 38% 4.2% *Note: Personalized email denotes Criteo Email Source: Criteo, 1H 2015
  18. 18. Act now, don’t be left behind #4 @
  19. 19. Consider email personalization as a top priority • Improving the level of email personalization and marketing automation are now top priorities for many marketers. • Replacing existing email service provider is also a high priority as marketers want partners that can analyze consumers’ browsing history to deliver highly personalized emails. Copyright © 2015 Criteo Top marketing technology priorities for marketers in 2015 20% Increasing level of personalization in email 16% Increasing use of marketing automation 13% Replacing email service provider 12% Deploying on-site personalization 9% CRM Systems/Customer Loyalty Programs 8% User Experience Testing & Analytics 6% SEM/SEO 5% Replatforming and New Websites 10% Other Source: eTail and Criteo, Trends in Digital Retail Report, 2015
  20. 20. Improve customer segmentation and targeting capabilities • Email marketing usage is shifting away from sending out email blasts to delivering dynamically created personalized messages. • Improving customer segmentation and targeting, and using data/analytics has become extremely important to support the growing preference for marketing automation. Copyright © 2015 Criteo Email marketing priorities for US marketers in 2015 Source: The Relevancy Group, “The Relevancy Ring: ESP Buyer’s Guide 2015” 35% Improving segmentation and targeting 33% Increasing use of analytics 33% Utilizing real-time data 30% Improving email inbox delivery 29% Centralizing customer data and making it actionable
  21. 21. Be compliant with country specific email marketing regulations • Privacy standards and compliance to anti-spam laws are necessary to ensure that users are in control of the emails they receive, and they can easily opt- out, should they prefer to do so. • Marketers must get clear consent from users on the content they would like to receive, and how often. • Despite the need to adapt to each country’s privacy standards, personalized email marketing delivers considerable uplift in performance compared to non-personalized email campaigns. Copyright © 2015 Criteo Email marketing privacy standards User gives permission for receiving marketing emails Not required, users can opt-out Opt-out for Advertisers Advertiser Not required User opt-in required for receiving marketing emails Implicit user consent, opt-in is not required Opt-out from Publisher Advertiser or Advertiser by Publisher Required Double opt-in required for receiving marketing emails, and additional opt-in needed to receive personalized marketing content Implicit user consent, opt-in is not required Opt-out from Publisher Publisher Required US UK, France Germany Source: Criteo
  22. 22. Conclusion and recommendations Copyright © 2015 Criteo Email continues to outperform most other marketing channels and is also helping marketers become smarter at meeting consumer needs. The following best practices will help marketers get better results from their email campaigns: • Consider email as a critical engagement service to deliver personalized messages to optimize customer lifetime value, and not merely as a sales tool. • Ensure your email looks great on all devices. Integrate responsive design in the email template to account for cross-device usage and the increasing shift to mobile. • Use marketing automation to send timely and relevant emails based on consumers’ behavior, and use it beyond cart/checkout abandonment to all website traffic. • Make sure your email service provider can enable you to comply with the diverse country/region specific anti-spam laws and privacy standards for consent, cookie dropping, list management, etc. What does the future hold? Personalized email marketing requires data-driven insights on customers to be able to create tailored messages at the individual level. In the future, marketers therefore will have to increasingly invest and rely on marketing automation technologies, combined with best of breed data analysis capabilities to harvest actionable insights.
  23. 23. This and other Criteo reports can be found at: Criteo delivers personalized performance marketing at an extensive scale. Measuring return on post-click sales, Criteo makes ROI transparent and easy to measure. Criteo has over 1,700 employees in 27 offices across the Americas, Europe and Asia-Pacific, serving over 9,250 advertisers worldwide with direct relationships with over 11,000 publishers. Criteo ads reach over 1 billion unique Internet users (comScore, March 2015). About Criteo