Singapore – Women’s online magazine ShoppingLifestyle.com has announced a new ‘Cost per Open’ email marketing option which they hope will bring more traditional clients online (Click here to read the full article). This is definitely a departure from the business model whereby portal with huge database of end consumers “sell/lease” their customer database to client based on the number of e-mail address in their database.

For the advertiser, this model will definitely mean better return on investment on their email marketing spent. They will no longer be paying for the size of the database, but rather making payment based on the quality of the database (which is implied by the open rate of the database). Would this change the way database companies “rent” out their consumer database? I am not too sure, but definitely it will cause a stir within the industry. One thing for sure is that advertiser would be more attracted by the new financial model.

The model will also put more responsibilities back to their database owners to ensure that they “clean” up their database and ensure proper segmentation of user profile, getting the consumers to be more engage, etc. In addition, it will also be the interest of the database owners to “help” their client optimize their email marketing efforts so as to generate better “open-rate” for the email.

Would shoppinglifestyle.com set up a division to assist their client in their email marketing effort and to assist their client to optimize their email marketing campaign next?

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