Q1 E-MAIL PERFORMANCE METRICS ARE UP
Despite industry concerns about spam affecting the performance of e-mail marketing messages, click-through and open rates rose in the first quarter, according to DoubleClick's Q1 e-mail trend report.

The study found that open rates grew 8 percent from the 36.4 percent in the fourth quarter to 39.2 percent in the first quarter. Click-through rates, meanwhile, increased 11 percent from 8 percent in Q4 to 8.9 percent in Q1.

The aggregated data is based on more than 2 billion permission-based e-mails sent by DoubleClick's DARTmail e-mail delivery technology.

Marketers of business products and services continued to have the highest open rates: 47.6 percent in Q1 versus 41.2 percent in Q4. The category also achieved click-through rates of 7.9 percent. Retail and catalog e-mail marketers increased their open rates from 38 percent in Q4 to 38.5 percent in Q1, and recorded click-through rates of 7.6 percent.

Following a decline in performance in the fourth quarter, travel e-mail marketers rebounded in Q1. The sector posted open rates of 43.4 percent, compared to 40.9 percent in the fourth quarter, and click-through rates of 8.4 percent, versus 5.8 percent in Q4.

Consumer product e-mails had the highest click-through rates at 14 percent, followed by publisher, consumer audience at 11.5 percent and consumer services at 8.6 percent.

Bounce-back rates have declined nearly 8 percent from 13.5 percent in Q4 to 12.5 percent in Q1, according to the report. Soft bounces, or unsuccessful delivery for reasons such as a full inbox, accounted for 47 percent of bounce-backs in Q1. Hard bounces, or bounce-backs received when an e-mail address is no longer valid, represented the balance.
Adweek

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Google could be five times faster
Users of the Google search engine like it because it's fast, but a team at Stanford University has come up with ways to make it up to five times faster.

With the extra speed, Google could be tailored for each user, according to the team. For example, a sports-loving Google user looking for "tiger" will see pages only on golfer Tiger Woods, not large felines from Asia.

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Jupiter Research, a division of Jupitermedia Corporation yesterday released the results of a survey confirming that search marketing will continue to be the hottest segment of online marketing into 2004.

"Seventy six percent of marketing executives that used search engine marketing rate it as more successful than banner-style advertising and 64% plan on increasing their spending," said Jupiter Research analyst Gary Stein.

"For consumers, Web-wide search is more accurate than local site search a full 52% of the time," added Jupiter Research senior analyst Matthew Berk. "Search is the single greatest opportunity to learn from - and influence - customer behavior."

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8:49 AM 0 comments

"All movies today need a Web presence, but studios have more to gain from films that have brand longevity," said Greg Bloom, senior Internet analyst, Nielsen//NetRatings. "The Matrix trilogy is a good example of a powerhouse franchise that takes full advantage of the Internet by extending its relationship with movie fans in an interactive and dynamic environment. As long as the studio keeps the site freshly updated with new and enticing content, the site is a superb marketing vehicle to attract repeat visitors, who represent a qualified consumer audience for the various promotional tie-ins, including DVDs, books and video game products."

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2:21 PM 0 comments

Big 4 Internet names on fire
EBay, Amazon, Yahoo, USAI hit fresh 52-week highs
By Bambi Francisco, CBS.MarketWatch.com
SAN FRANCISCO (CBS.MW) -- It's better late than never, apparently.

After investors shunned Internet stocks over the past several years, and missed the run-up that began six months ago, they're apparently jumping in to take Net stocks to new 52-week highs on Tuesday.

Much of that optimism stems from a recent Goldman Sachs Internet conference last week where investors got Net religion.

EBay, which remains Goldman analyst Anthony Noto's top pick, saw shares top $100 and stay there. The stock traded at $102.36 in recent trading. USA Interactive is another Goldman top pick. Shares shot up 4 percent to $37.30.

A real-time video-dating service may be in development by America Online's Instant Messaging service. An analyst with Forrester Research speculated USA Interactive's Match.com could be a partner, since it hosts the online service's section. See Internet Daily.

Amazon.com rose 5 percent to $34.43, a fresh 52-week high. Yahoo topped $30. Shares traded shy of that level in recent trading.

Driving consumer Internet companies higher are three key themes, according to Goldman.

First, e-commerce has "finally crossed the chasm to mass-market adoption." Second, broadband growth should reaccelerate with price reductions and drive e-commerce and online advertising. Third, the group is one of the only "truly emerging growth sectors."

But the large-cap names weren't the only winners in Tuesday's trading. Smaller names were beginning to get noticed.

LivePerson, a company that's trying to incorporate its customer service representatives to online retailers. E-tailers are using customer reps to raise the conversion rates. LivePerson shares have more than doubled since its products were highlighted in this column at the start of April. See full story. Shares of LivePerson rose 6 percent to $1.75 in Tuesday trading.

Additionally, at the end of last week, LivePerson said it received notification from the Nasdaq Stock Market that the company regained compliance with Nasdaq's minimum bid price rule.

The search sector saw major advances as well. Ask Jeeves jumped 9 percent to $13.24. Overture added 4 percent to $16.43.

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CALIFORNIA MOVES TO TIGHTEN SPAM PENALTY
Sending an unsolicited e-mail to a California resident would leave the sender liable to a $500 fine under a bill passed by the state Senate this week. It now goes to the Assembly for review. The measure would require e-mailers to get permission from recipients before sending messages. Current California law requires e-mailers to include "ADV" in the subject line.

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Government Arrests 135 in Cybercrime Crackdown
Calling the crackdown "Operation E-Con," Ashcroft said that since January 1st, law enforcement officers have conducted 90 investigations that led to the arrest of 135 people and seizure of $17 million.

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10:34 AM 0 comments

LAW ENFORCEMENT AGENCIES BATTLE INTERNET FRAUD
A collective of law enforcement agencies led by the Federal Trade Commission banded together Thursday to file 45 criminal and civil actions against Internet scammers and deceptive spammers.

Joining the FTC are the Securities and Exchange Commission, three United States Attorneys, four state attorneys general and two state regulatory agencies. In addition to the FTC cases, 11 other federal and state law enforcers filed 37 actions.

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Approximately 40 percent of people surveyed in December 2001 and January 2002 reported using the Internet to look for advice or information about health or health care in 2001, and approximately 6 percent reported using e-mail to communicate with a physician or other health care professional. The finding was reported by the authors of a survey of Internet use, published by the Journal of the American Medical Association. "Although many people use the Internet for health information, use is not as common as is sometimes reported," the authors of the study said.

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Just 16 days after Apple Computer (AAPL) debuted ITunes, it has sold more than 2 million songs through its online music store, the company said Wednesday.

ITunes, with more than 200,000 songs, lets consumers download music they want for 99 cents per song and no subscription fees.

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10:31 AM 0 comments

Another example of the Internet bridging borders, languages and ideas in addition to allowing multiple, dispersed parties to rapidly assemble to tackle big issues:

Upper Deck and SOHU.com Launch Official Yao Ming English and Chinese Language Websites and Join Yao Ming's Fight Against SARS
The Upper Deck Company, LLC a premier sports and entertainment publishing company, and SOHU.com (NASDAQ:SOHU) , China's leading online media, communications, commerce and mobile value-added services company, will formally launch the official English and Chinese language Yao Ming websites on May 9, 2003. The web site launches will coincide with Yao Ming's charity telethon in support of the fight against SARS, that SOHU and Upper Deck have co-sponsored.

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WebSideStory, Inc., the creators of HitBox(R) services, the standard for online marketing analytics and optimization, today announced the launch of HitBox Commerce v3 -- a unique service that empowers online retailers to optimize their cross-channel tracking, analysis and marketing activities in real time. The new version also contains powerful new lifetime customer analysis features, as well as customizable executive dashboards, to help retailers maximize their marketing dollars and make smarter, faster business decisions.

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9:42 AM 0 comments

AUSSIE WEB MEASUREMENT FIRM ENTERS U.S.
Hitwise, an Australian Internet measurement service, has entered the U.S. market, positioning itself as an alternative to comScore Media Metrix and Nielsen/NetRatings.

The company, which sets up shop in New York, currently monitors the behavior of more than 10 million U.S. Internet users through data collected from domestic Internet Service Providers and opt-in panels. Its main U.S. competitors recruit their panels via random-digit dialing.

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Nearly half of all emails can be classified as spam, according to BT Openworld. The UK Internet service provider monitored mails sent by customers during a week in March, and found 11 million of the 25 million messages were spam. Thursday was the most popular day for spamming, with more than four million examples detected. Sunday polled the highest percentage of spam with the proportion rising to 51 per cent of all messages sent.

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According PaymentOne study, consumers continue to perceive serious shortcomings with today's online payment options, particularly with respect to security. In fact, when consumers who have not made online purchases were asked what would persuade them to buy online content, 53% cited more secure payment options. Payment security was chosen over price or product-related responses by more than a 2-1 margin.

Meanwhile, too few executives at content and service provider companies perceive payment as a critical strategic business issue. Executives responding to survey questions consistently cited pricing, content quality and other non-payment issues as their primary concerns for growing their businesses.

The survey indicates there is real interest among consumers in paying for online content. By far, respondents were most willing to pay for classified ads. Fifty-two percent chose classifieds as the content they were most likely to purchase. Twelve percent said they were most likely to pay for Internet news; 11% for music; and 11% for games. However, 61% of all consumers said they would be more likely to make online content purchases if there were an easy and secure alternative to the credit card.

Adapted from an editorial article by Masha E. Geller, Editor in Chief, MediaPost Communications

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6:56 PM 0 comments

NO SPIN ON SITES, AGENCY FINDS
Prompted by recent corporate scandals, WPP Group's Burson-Marsteller audited the Web sites of 26 U.S. companies that faced crises in 2002. Surprised to find that the firms rarely voiced their side of the story online, the New York-based shop saw a communications vacuum.

In response, Burson, which helped Johnson & Johnson's PR efforts after seven people died from taking cyanide-laced capsules of Extra Strength Tylenol in 1982, has launched proprietary Web audit system Prepare, which uses a 62 item checklist to help companies practice better online crisis communications.

"What we've learned is that companies are not up to speed in understanding that [the Web] is a form of advertising their point of view," said Leslie Gaines-Ross, chief knowledge and research officer. There was nothing about Martha Stewart's insider-trading case on her site, she said, "even though the papers were raging with stories about [her]."

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2:48 PM 0 comments

Dot-coms rise out of ashes

By Michael Liedtke
SAN FRANCISCO ? After years of ridicule and ruin, Internet stocks are recapturing their charm and seducing investors again.

The handsome stock market gains posted so far this year by eBay Inc., Yahoo! Inc., Amazon.com Inc. and other Internet companies have sparked a debate over whether the surge heralds a dot-com comeback or another investment bubble.

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