Wednesday, May 25, 2005

Is E-Mail Prospecting Over?

Two disappointing experiences using opt-in e-mail lists to prospect for new retail customers suggests that opt-in e-mail has little or no prospecting value.

Case 1. A highly regarded multi-channel retailer sells me 15,000 double-opt-in names which I select by age and geography. I pay $83 per thousand. We create a target-centric, time sensitive offer which gets through SPAM filters for all major ISPs. I get less than 100 clicks to my site and zero sales.

Case 2. The leading tech site sells me a skyscraper in a weekly newsletter. 150,000 readers opt-in for a weekly dose of niche information. I pay $19 per thousand to expose my page-dominant relevant message. I get less than 300 clicks and 6 sales.

In both cases , performance is much worse than any public industry benchmarks and worse than DM norms. Both are credible vendors. Creative is on-point, less than 200 words, above the fold, offer-oriented, well-designed and gets through tight filters.

It makes you wonder:
Has opt-in e-mail been debased into the dust?
How many people have signed up for things they ignore or delete without opening?
How many list owners are carrying these names as active?
How much longer will anyone buy these lists?


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Computer News
Microsoft lawsuit is called a 'charade'

In a simmering legal tussle, Google, the Internet search company, is asking a judge to reject Microsoft's bid to keep a prized research engineer from taking a job at Google, saying that Microsoft filed a lawsuit to frighten other workers from defecting.

Microsoft sued the research engineer, Kai-Fu Lee, and Google last week, asserting that by taking the Google job, Lee was violating an agreement that he signed in 2000 barring him from working for a direct competitor in an area that overlapped with his role at Microsoft.

"This lawsuit is a charade," Google said in court documents filed before a hearing on Wednesday in Seattle. "Indeed, Microsoft executives admitted to Lee that their real intent was to scare other Microsoft employees into remaining at the company."

Google countersued last week, seeking to override Microsoft's noncompete provision so that it can retain Lee.

"In truth, Kai-Fu Lee's work for Microsoft had only the most tangential connection to search and no connection whatsoever to Google's work in this space," Google said in court documents.

The judge in the case, Steven Gonzalez of Superior Court, who heard arguments in the case on Wednesday, said he expected to issue a ruling on Thursday.

Google's filings include details about a conversation Lee had with Microsoft's chairman, Bill Gates, suggesting that his company was becoming increasingly concerned about Google's siphoning of talent, and perhaps intellectual property.

Lee said Gates told him in a meeting on July 15, referring to Microsoft's chief executive, Steven Ballmer: "Kai-Fu, Steve is definitely going to sue you and Google over this. He has been looking for something like this, someone at a VP level to go to Google. We need to do this to stop Google."

A Microsoft spokeswoman, Stacy Drake, declined to comment on Gates's statement directly.

"Our concern here is the fact that Dr. Lee has knowledge of highly sensitive information both of our search business and our strategy in China," she said.

Lee said Google did not recruit him and had not encouraged him to violate any agreement he had with Microsoft.

Microsoft countered that Lee's job with Google gave him ample opportunity to leak sensitive technical and strategic business secrets. Microsoft noted that Lee attended a confidential, executive-only briefing in March, which was labeled "The Google Challenge."

"In short, Dr. Lee was recently handed Microsoft's entire Google competition 'playbook,"' Microsoft said.

Lee joined Microsoft in August 2000 after he helped to establish its research center in China. At one point, Microsoft said, he was in charge of the company's work on MSN Search.

Microsoft and Google, along with Yahoo, are locked in a fierce battle to dominate search, both online and through desktop search programs. Google has begun offering new services, including e-mail, that compete with Microsoft offerings.

Microsoft said it had paid Lee well in exchange for his promises to honor confidentiality and noncompete agreements.

The company said that Lee made more than $3 million during nearly five years at its headquarters in Redmond, Washington, and that he earned more than $1 million last year.

Microsoft asserts that there is "an extremely close between the work Lee did at Microsoft and what he will be doing at Google.

Google argued otherwise, insisting that Lee is not a search expert and noting that his most recent work at Microsoft was in speech recognition.

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