March 2003
WHY THERE'S NO SUCH THING AS A FREE LIST
One consequence of the prolonged downturn in the economy, and of marketing
spending in particular, is that publishers and list owners are often
dangling free names in an attempt to secure media deals. Scarcely a
campaign goes by these days when a client doesn't have ready access to a
free e-mail or direct mail list gleaned from a recent ad buy or some other
transaction.
We negotiate these deals as much as anybody, but it's important to
recognize that since list strategy is the #1 success factor for any
campaign, a free list may not in fact be the best choice for your next
program. Nor should the availability of such a list drive campaign
strategy.
Even though a free e-mail list will slice a much larger chunk out of your
total campaign cost than is the case for direct mail, such a campaign is
rarely if ever completely free. There's still the price of creative (even
if it's just the cost of your time), plus the time and expense to
coordinate, manage, and track the broadcast. Response to different e-mail
lists varies widely, and so even if another list costs as much as 50 cents
a name or more, it could well end up proving to be the better alternative.
Secondly, don't let a free list drive your entire campaign strategy.
Selecting the ideal audience, offer, product focus and message for your
next program should be a considered decision based on past performance and
other metrics, not which list owner was handing out the most free names.
Lastly, test. Don't make the mistake of mailing or broadcasting
exclusively to one list because it was free. We've had many occasions over
the years when free lists that the client felt were "ideal" (especially
customer lists from partners) turned out to be duds. Even if a certain
list feels like a good match for your audience, always test at least one
and preferably two other list sources at the same time. Without that
benchmark, particularly if the campaign doesn't perform up to expectations,
you'll never know how much those results were due to the list or other
factors.