E-NEWSLETTERS DRIVE TRAFFIC, BUT NOT REVENUE

By: Jennifer Owens

Nation’s Top Magazines Report Mixed Results


(Adweek IQ) While e-newsletters can be excellent traffic drivers,
their revenue-producing abilities continue to be iffy, according
to a new study released today by Folio, a trade magazine
focusing on magazine publishers.

The study – conducted for Folio by Clientize, a Boca
Raton, Fla.-based market research company – found that 207
of the top 500 magazines as identified by Folio distribute
free e-newsletters through their Web sites. Of the 44 publishers
who participated in the survey, nearly all described e-
newsletters as an “excellent” or “good” way to deliver traffic to
a Web site. But only 21% rated the e-newsletter as an excellent
way to generate ancillary revenue. Another 46% called e-
newsletters a good source of ancillary revenue, while 34% rated
them as poor.

About a third of all respondents said they rent their e-mail
databases, with about a third renting or sharing the list only
with advertisers. Nearly 70% said they have an opt-in process,
while 31% said they do not gather permission to send additional
offers and information.

Nearly all respondents said they accept ads in their e-newsletters;
67% said they offer combined Web site and e-newsletter ad packages.
Less than half said they offer a combined print and e-newsletter ad rate.

Finally, the study found about one-third of publishers reporting
ad clickthrough rates of 5% or more for their e-newsletters,
while 9% posted rates of 20% or more. Just less than half of the
respondents reported ad clickthrough rates of 5% or less.



Copyright 2001, Editor & Publisher.

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