List prices continue to favor buyers, but at what cost?
The latest Worldata List Price Index is a decidedly mixed bag for sales and marketing executives. List prices for most of the major e-mail categories continue to drop, no small thing with marketers strapped for budget these days. But ongoing price declines could also lower the value of lists over the long-term, which could hurt sales and marketing execs when the economy recovers.
“More companies are making more of their data available to generate incremental revenue, but fewer and fewer marketers have sizeable budgets to purchase the data,” said Jay Schwedelson, corporate VP of Worldata. “When people start to lower price points, it doesn’t bode well for the perception of data.”
Permission-based e-mail in b-to-c markets continues to show the largest price decrease and percent decrease from 2008, according to Worldata’s summer 2009 List Price Index. The average price for permission-based b-to-c e-mails dropped $50 per thousand names (CPM) compared with summer 2008. A major drop in price has occurred every few months in this category, showing a small decline from the spring. However, in the last 12 months, averages show a huge decrease from the previous year.
Permission-based b-to-b email remains the highest-priced category. During summer 2009, permission-based b-to-b email had a $288/CPM, compared with $299/CPM during the same period last year. Pricing for b-to-b email has been fairly stable due to the ongoing decline in direct marketing (read: postal). “E-mail is becoming the preferred [marketing] channel and prices are reflective of that,” Schwedelson said. (See List Price Index here.)
Schwedelson stressed that the numbers used in the price index come directly from rate cards and that, regardless of the space, sales and marketing executives have to sharpen their negotiating skills. “If you’re paying rate-card costs you’re doing yourself an injustice,” he said. “There are a lot of data providers out there. You have to do a lot of due diligence to understand the category and get the best rates to help solidify your audience.”
Disclosure: Worldata is a partner of ZoomInfo