New Australian Privacy Principles: Be prepared or face tough penalties

January 28th, 2014

12 March 2014. It’s the day the new Australian Privacy Principles come into force. There are new rules and strong penalties for breaking them. Read on to find out more about how the changes impact marketers.

The Privacy Amendment (Enhancing Privacy Protection) Act 2012 amends the Privacy Act 1988, replacing the ten National Privacy Principles with thirteen Australian Privacy Principles – including one specifically relating to the use of personal information in direct marketing.
The Australian Privacy Principles will replace the existing National Privacy Principles from the 12th of March 2014

Schedule 3 of the current Privacy Act 1988 contains ten National Privacy Principles (NPPs), which will be replaced with the Australian Privacy Principles (APPs) from the 12th of March 2014. Although the content of the thirteen APPs is largely similar to the existing NPPs, more specific requirements in relation to privacy policies, cross-border disclosures and access to personal information, as well as a principle that deals solely with direct marketing, have been added.

With new penalties of up to $1.1 million for company breaches of the Act, and some advisors claiming that penalties could be up to $1.7 million, it’s important to be aware of the changes and adjust corporate policies and procedures to comply.

Australian Privacy Principle 7: Direct Marketing

The Privacy Amendment (Enhancing Privacy Protection) Act 2012 includes Australian Privacy Principle 7, which focuses on direct marketing and privacy. This is in contrast to the current NPP dealing with the use and disclosure of personal information that lists direct marketing as a potentially secondary use of collected data.

The existing NPP 2.1 states that an organisation must not use or disclose personal information about an individual for a secondary purpose unless one of the listed exceptions applies. Some of these exceptions include where:

  • - the secondary use is directly related to the primary purpose of collection and the individual would reasonably expect the organisation to use or disclose their personal information (2.1 (a))
  • - the individual has consented to the use or disclosure of their personal information (2.1 (b))
  • - the information is not sensitive information and the use of the information is for the secondary purpose of direct marketing (2.1 (c)).

The new, more specific, APP 7.1 states that “if an organisation holds personal information about an individual, the organisation must not use or disclose the information for the purpose of direct marketing”. However the APP 7 subclauses also set out a number of exceptions where direct marketing uses are permissible. Organisations can use the personal information (other than sensitive information) they have collected from individuals themselves if these individuals would reasonably expect their information to be used for that purpose and there is a simple and free opt-out mechanism in place (7.2).

Under APP 7, organisations can also use personal information (other than sensitive information) obtained from a third party for direct marketing, or information that individuals would not necessarily expect to have used for that purpose, if:

  • - the individual has consented to the use or disclosure of the information for that purpose or it is impracticable to obtain that consent (7.2 (b)); and
  • - the organisation provides a simple means by which the individual may easily request not to receive direct marketing communications from the organisation (7.2 (c)); and
  • - in each direct marketing communication with the individual the organisation draws attention to the fact that they can opt out of the communication (7.2 (e)), and provides a clear and easy way of doing so (7.2 (d)).

Sensitive personal information, such as the individual’s race or ethnicity, their political beliefs or health data, may only be used for direct marketing if the person has agreed to the information being used for that purpose (7.4). Furthermore, if an individual requests not to receive direct marketing communications from the organisation, or requests that their personal information not be shared with other organisations for that purpose, the organisation which collected the individual’s information must “give effect to the request within a reasonable period” (7.7 (a)). Of course, APP 7 will work in correlation with other privacy laws, with the Do Not Call Register 2006 and the Spam Act 2003 taking precedence (7.8).

Border protection

Another important change to the Privacy Act 1988 which could affect direct marketing practices is in regards to the sharing of personal information with overseas entities. APP 1 states that in an APP entity’s privacy policy, not only should the organisation fully disclose the kinds of personal information it collects and how it is stored, but it should also clarify whether it is likely to disclose information to overseas recipients (1.4 (f)), and if so, in which countries these recipients are likely to be located (1.4 (g)).

Also relating to the cross-border disclosure of personal information, APP 8 builds on the existing NPP 9 but increases the responsibility of organisations to ensure that the overseas entity has similar privacy principles to the APPs. APP 8 states that before an organisation transfers an individual’s personal information to an overseas recipient, it “must take such steps as are reasonable in the circumstances to ensure that the overseas recipient does not breach the Australian Privacy Principles (other than Australian Privacy Principle 1) in relation to the information” (8.1).

There are a number of subclauses that allow for exceptions to APP 8.1, including the informed consent of the individual for their personal information to be transferred to the overseas entity (8.2 (b)), or the organisation’s reasonable belief that the overseas recipient is subject to a law or binding scheme similar to the APPs and that this law or binding scheme is enforceable (8.2 (a)).

The APPs’ more detailed and prescriptive requirements protect and enhance the rights of individuals over their personal information, as well as increasing the responsibilities of organisations. For direct marketing businesses and users, it’s important to be aware of the amendments to the Privacy Act 1988 and how it will affect your privacy practices and data collection.

For a detailed analysis of the Amendment’s changes, the Australian Government has produced a comprehensive comparative guide outlining the differences between the NPPs and the APPs.

To ensure your organisation’s data privacy policies and practices are up-to-date and address the APPs, make sure you can complete this Data Privacy Compliance Checklist.

Not all leads are born equal!

January 20th, 2014

Lead generation is a great way to drive sales and build qualified marketing lists. But when you’re putting in place a plan to work with digital lead suppliers beware: not all leads are born equal.

Australian Lead Conversion Rates

Australia (click to enlarge graph)

New Zealand Lead Conversion Rates

New Zealand (click to enlarge graph)

Lead generation has been a growth digital channel in Australia and New Zealand over the last few years. There are many suppliers – local and international  - offering their services to help build email databases or generate a constant stream of telemarketing leads.

Leads are generated from many different audiences and in many different ways. Three key lead sources include membership, ecommerce and publisher sites. These sites have one thing in common: they exist to provide a service to their audience with lead generation an ancillary revenue opportunity. There are also sites that exist for the sole purpose of generating and selling leads.

A review of data from actual campaigns run in Australia and New Zealand indicates that the value of a lead differs significantly based on its source. In other words: not all leads are born equal!

The analysis was carried out on leads from source to a sale on the client’s website. A subset of the results is presented here which focusses on the conversion rate from an email lead to the acquisition of a new customer.

The study found that 3Di’s own member rewards website Great Sites recorded the highest conversion rates in Australia and was also a strong performer in New Zealand relative to other lead sources. Great Sites was not only a top source in terms of lead conversion rates but was also able to deliver a high volume of leads. There are a number of reasons for this result.

  • - Quality traffic sources used in member acquisition
  • - Engaged and loyal membership
  • - Multiple touch points across;
    • - offer path
    • - on-site featured offers
    • - email promotion

Another category of site that consistently produce quality leads are offer paths that are presented to users on ecommerce sites once the user has completed their purchase (transaction). Post-transactional paths – by their definition – are full of prospects with income that they are happy to spend online.

Publisher email databases and competition pages were also shown to be quality sources. When referring to ‘publishers’ we are excluding sites whose sole purpose is to generate leads. One of the contributing reasons publishers typically outperform standalone offer paths is that they generate quality traffic via their primary content.

The final group are sites that have been designed for the sole purpose of generating leads, often using competitions as the incentive to register and view offers. These sites can generate a large volume of leads and can play an important role in any lead generation campaign. They tend to produce lower quality leads in terms of conversion rates. They can also demonstrate large variations in quality from one path to another, and even in the same path over time. The reasons for this include:

  • - Lower quality traffic sources
  • - Misleading offer presentation
  • - Too many competing offers
  • - Incentivised registration
  • - Incentivised leads

The leads from the standalone offer paths on average converted 60% less often than those from membership sites like Great Sites, ecommerce sites and publisher sites. And the best standalone offer path was almost 4 times as good as the worst. It is therefore vital to constantly monitor, optimise and manage these offer sources. The key is to know how each source actually generates traffic and how they convert this traffic into leads. This robust tracking and optimising is critical to maximising your lead generation return on investment.

To provide advertisers with a reliable, effective and transparent service 3Di has developed its own sophisticated lead generation platform and methodology and offers an end-to-end solution that takes the guess work out of lead generation. It allows advertisers to focus on their business while 3Di manages and optimises all their lead sources.

Talk to an Account Manager today:
Contact 3Di (Sydney)
Contact 3Di (Auckland)

HOT 100 : email our most active members

January 20th, 2014


Based on feedback from our most astute digital marketing clients we have put together a simple B2C package that allows advertisers to quickly and cost effectively reach an engaged and responsive consumer base. The package targets 100,000 most active Australian members based on recency of last click, last conversion or last survey update. These committed and engaged members take the time to review offers and can be relied upon to share interesting offers with their relevant friends and family. As the only targeting used for these campaigns is recency we are able to offer the sends at a discounted price of $5,000 (only $50 CPM!) which has been shown to deliver an excellent ROI for a wide range of advertisers.

Talk to an Account Manager today:
Contact 3Di (Sydney)

Active member demographics

Active Member Demographics

Talk to an Account Manager today:
Contact 3Di (Sydney)

3Di top 2% on Slideshare in 2013!

January 17th, 2014

3Di Slideshare

3Di’s presentations are in the top 2% viewed on Slideshare, checkout our stats! We hosted 10 presentations on Slideshare covering our major products and services and achieved almost 20,000 views over a 9 month period.

If you have not had a chance to review our presentation decks why not start with the two most popular from 2013?

Lead Generation Services (7436 view) & Email Advertising Services (5077 views)

Lead Gen

Email Lists

Cache-ing, not ka-ching with Gmail Images?

January 14th, 2014

Email marketing is, of all digital channels, one of the most mature. But unlike offline marketing – where change generally happens at a snail’s pace – development in email marketing can be rapid and frequent.

One recent change by Google can have a significant impact if the email lists you are using have a lot of users on Gmail. This includes not just addresses using the domain, but also emails users that have Gmail as their SaaS (Software as a Service) platform on custom domains.

Image caching impacts email tracking

For users of the Gmail Web browser email client or Gmail App, images will now open by default (unless the user changes settings). This both sounds and is good for those of us using design to drive a greater impact among recipients – users will no longer have to click to choose to display images.

images not displayed

Gmail heralds the end of the dreaded ‘Images are not displayed’ dialogue

However there is a catch. As part of the change, Google is now caching the image on their servers.

As most marketers would be aware, images are used in direct email to track user engagement and other user information. The tracking is possible because the image must be requested from the marketers Web server. However, when a Gmail user opens an email, the images that open straight up will be loaded from Google’s cache rather than from the marketers Web server.

The net result: without a method to bypass the Google cache and request the tracking image from the email service providers system, the reliability of tracking is impacted.

It also has an impact when geolocation is used in an email to display a location-specific image to increase the relevance of an offer, for device detection, or for any other server-side image changing.

So what can you do?

The first thing to note is the importance of individual tracking. With individual tracking the first open of the email will be recorded, as the Google system downloads images to its cache. Given that images are visible by default on Gmail now, the result might actually be an increase in the open rate from Gmail clients! However, if the recipient opens the email again, the load will be from the Google cache and not tracked unless a method to bypass the Google Gmail image cache is used.

HTML Header

HTTP header tricks could keep tracking accurate – see your email service provider

To have accurate tracking results, consider email service providers that have incorporated valid ways around the Google Gmail image cache for tracking purposes. This is a developing area and it is unclear how long these workarounds will work, so it’s also important to be aware of future changes.

Secondly, users that access Gmail through other clients – whether it’s Outlook, Thunderbird, Apple Mail or something else – will not use the Google cache for images. Tracking for those users will not be impacted.

We all know that email marketing works: email’s market penetration is massive; it’s users are valuable; it’s a leading social channel; and open rates on mobile clients are double those of desktop-based users. To get the most out of your email marketing, it’s important to be aware of the changes. In combination with good email marketing first principles, this can both deliver marketing advantages and avoid pitfalls.

Email Marketing Works: Tips for campaigns

August 2nd, 2013

When it comes to customer acquisition, you might be surprised to learn that email is one of the strongest performing channels available.

Yes that’s right. Email. You might spend your days in meetings discussing radical new techniques to gain social network kudos – apps, content, personality and more – but good old email is a channel that delivers results.

Email is critical for customer acquisition. 6.84% of customers were acquired by email in 2013 according to a study of 72 million shoppers on 86 different retail Web sites in 14 different industries by Custora. Email was the third most important source after organic search (15.81%) and CPC advertising (9.82%), and it far outperformed Facebook (0.17%), banner ads (0.46%) and affiliate marketing (0.96%).  And over the last 4 years the importance of email as a customer acquisition channel has increased nearly eightfold.


Email has massive market penetration. Everyone has an email address. Everyone. And most organisations – from the Federal Government to the local hairdresser – use email as a primary communication tool. In the US, 61.2% of the 2013 Chief Marketer Prospecting Survey respondents generated new customer leads via email and, of the remaining, 18% more plan to start.


Email is a leading social channel. No, we’re not having you on here. Influencers the world over use emails to share information. And, of course, it’s bi-directional communication: it’s one-to-one, one-to-many, and many-to-many. And while your audience may have casual acquaintances on Facebook and LinkedIn, their email address book includes their most trusted colleagues and friends. And email certainly helped Obama during the last US Presidential election!

Email is mobile. We all know the world has gone mobile. It’s not a secret. But what’s the number one app any mobile device has. Yep, the email client. Email doesn’t tie us to the computer any more. It hasn’t for years. And the open rate on mobile for emails at 44% is almost double the open rate on webmail clients.

Email customers are valuable. According to the Custora study, the lifetime value of a customer acquired through email was 11% more than one acquired via Facebook or banner advertising, and 4% more valuable than a customer acquired through affiliate marketing.


Another study by SocialTwist found that among consumers who referred products or services to friends, the majority (55.4%) used email, nearly 14% more than Facebook (41.8%).


MIME-ing for gold: ten conversion tips

Of course, you still need to get your campaigns right. The right offer, copy, and creative, as well as targeting the right audience, will have a massive impact on the effectiveness of your campaign.

Here are ten tips on increasing conversion for your campaign:

  1. Design and build your emails to optimise conversion. Look to modern slick design, action oriented copy, adding images of people where relevant, clear value propositions and make calls to action strong through design including button size and colour. And don’t miss the basics like subject line and quality copy.
  2. Make it work on mobile. Determine your strategy for mobile support such as responsive, fluid, scalable or mobile-aware. And remember, mobile is not just Android, iPhone and iPad. It’s Windows Mobile, Blackberry and mail apps that run on the Android and IOS operating systems. Consider different screen sizes and touch support too. 4 to 5.5 inch screens are common on smartphones. Tablet screens are also no longer defined by iPad dimensions: they commonly range from 7 to 13 inch, with screen size being pushed up by the increasing availability of convertible notebook/tablet/touchscreen devices like Microsoft’s Surface and Ultrabooks.
  3. Make sure your email marketing is cross-client compatible. Different email clients render emails differently: optimise to maximise reach, impact and response.
  4. Use text for key messages and links because email clients – mobile and computer-based alike – may have image blocking on.
  5. Target special features in popular email clients – like Google Quick Actions – to improve the audience experience and increase conversion.
  6. Track your audiences email client use. It’s important to know what are the popular email clients in the community, and it’s just as important to know what email clients your lists are using.
  7. Don’t let your email get caught in the spam trap! Spam test to make sure your email will get through to recipients.
  8. Support your email message with good landing pages. When your audience clicks on your call to action, help them through to conversion with landing pages that are on message.
  9. Use audience targeting, but remember that email is often shared (forwarded). Sometimes a broader distribution will increase your email reach when recipients forward it to friends or colleagues they know are interested in your offer.
  10. Test your emails and measure campaign performance. Before you click send, test your emails across multiple email clients including mobile clients. Include tracking code in your email to get campaign performance information like opens, reads, device usage and more.

Whole of business email

Sending out regular offers via 3rd party email is important, but it’s only one facet of using email to gain, keep, incentivise and convert customers.

Email must be used in ongoing communication, to individuals and audience segments. Here are some ideas how email can and should be used:

  1. Send regular personalised emails: welcome for new customers, offers, new releases, news and even birthday wishes (free offer with a birthday buy?)
  2. Close the loop by asking customers to review your products and service after purchase
  3. Inform customers if new accessories have been released for a product they have bought
  4. Send a shopping cart prompt if a customer has added products to their cart but not completed the transaction.
  5. Reactivate an inactive customer with a discount coupon
  6. Reward customers for the first purchase via email with an offer
  7. Provide care and maintenance information by email after a purchase. You could even send manuals by email so the customer has them in their inbox, as well as in the box!
  8. Send a cross-sell promotion
  9. Carry out regular customer surveys
  10. Build community by using email to connect your users to forums, social channels and more.

Email marketing is science, not guesswork. It’s targeted. And it’s mobile. The technology and techniques are mature, the results are measurable, and it’s cost effective.

The right offer and creative, delivered to an appropriate audience, will get results. So don’t just sit there, send

Find out how 3Di can help you to get started;
in Australia
in New Zealand

Email Marketing Equals Dollar Signs

January 11th, 2013

Welcome to 2013, Over the break we came across this article by Cara Olson of Marketing Land and wanted to share as it will clarify some points for many online marketers.

Open and click-through rates are common metrics used to evaluate the success of email campaigns. But we all know that for retailers, revenue is what really matters.

Like every other department in an organization, as the new year begins (or when your fiscal year ends) marketers are requesting and competing for budget. As you prepare, use the following email revenue metrics to help prove your case.

Campaign Revenue

How much money did you generate on your e-commerce site from a particular email send? Knowing this requires that your emails are appropriately tagged for your online analytics tool (Google Analytics, Omniture, Core Metrics, etc.).

Appropriate tagging is the first step toward accurate reporting of this information, and it can be even better if you can also attribute offline sales. Obviously, some campaigns will have higher revenue than others, depending on their objective and call-to-action. However, spikes in revenue that can be attributed to a particular email and then be viewed over time are an incredibly valuable proof point for your marketing program.

Return On Investment (ROI)

Return on investment (ROI) is the classic baseline marketing metric. It’s where the rubber meets the road for your efforts. That doesn’t mean that it’s always a straightforward metric, however. You need to consider all of the relevant factors in the cost of the campaign, typically including services and sends, and are typically reported as a percentage, as follows:

Formula: Campaign revenue generated – cost of campaign / cost of campaign = return * 100 = ROI

For example: $100,000 – $2,500 / $2,500 = 39 * 100 = 3,900% ROI

A 4,000% ROI sounds unreal, but for this approach to capturing ROI, it can even go higher for something like a set-it-and-forget-it triggered campaign. For instance, an abandoned cart email has a moderate initial cost in setup services, but from the point of deployment has only has minimal per-send cost ongoing.

And, abandoned carts have an excellent track record for generating revenue. Measuring ROI like that can generate some garish numbers. You’ll have some doubters when you tell the story of your 60,000% ROI, even though your math checks out.

Return On Marketing Investment (ROMI)

It is for these reasons that I prefer to report on the more appropriately termed “return on marketing investment” (ROMI). It is important to clarify “marketing” in the metric name because it typically does not factor in the cost of making the product or any offer/discount. ROMI can then be reported as a statement, such as “For every marketing dollar spent, we generated $X” defined as follows:

Formula: Revenue generated / cost of the campaign = revenue generated for every dollar spent

For example: $100,000 / $2,500 = $40 generated for every $1 spent

If you are pulling your weight, this metric can be incredibly useful in building a business case for new email integration projects.

The following graphic depicts all three metrics above:


Revenue Per Email (RPE)

Need to make the case that your organization should invest in list growth? Even if you don’t boost your conversion rate, list size can be a significant factor in generating of revenue – if more people see your messaging, more people will convert. RPE is calculated as follows:

Formula: Total revenue generated from a campaign / Total number of delivered emails

For example, for a promotional campaign $20,000 / 1,000,000 = $0.02

For example, for a triggered campaign $11,000 revenue / 4,000 emails sent = $2.75

As straightforward as you can get, this metric tells you how much money you made for every email address you sent to (less bounces), as depicted visually below:


For your budget debate purposes, you can begin to project how an increase in list size might result in an increase in revenue. In the first example, for every email delivered, your brand made 2 cents, regardless of opens or clicks.

In the above example, there are 1,000,000 subscribers on the list. You can then infer that if you had grown your list to 1,500,000 subscribers, the campaign would have generated an additional $10,000 (assuming all engagement metrics remain relatively the same). If the brand typically sends eight promotional campaigns a month, that is an additional $80,000. You can quickly see why list acquisition should always be a strong focus.

On the flip side, RPE is a good indicator of how much you can spend to gain a subscriber. For example, if it costs $1 to obtain a new email address and you know on average you generate $0.02 RPE, then it will take 50 emails to “pay for” the acquisition of that subscriber.

At eight promotional emails a month, you are generating a profit from that subscriber after six months – a generalization that does not consider triggered sends (which have a higher RPE, as shown above) that are a legitimate and important part of the lifecycle of emails sent to a subscriber.

Cost Per Subscriber

For each acquisition tactic, you should calculate cost per subscriber, which is a reflection of the cost of acquisition for each new email address.

While the aggregate cost per subscriber is certainly important, it is just as important to note that this metric can vary greatly by tactic/source, and so close examination of individual results is highly recommended – as is a value threshold for each tactic. For example, organic signups on your website may have a $0 cost; whereas, PPC acquisitions might run into double figures.

Acquisition-focused campaigns can be calculated from their total cost. Take a social media campaign in Facebook, for example. A Facebook page may have run for a month with a contest to enter to win a free item. As part of the contest entry form, users opted in to receive emails. Let’s assume the social media campaign had a fixed cost to design and develop it. Once the contest is over, simply calculate the following:

Formula: Cost of the campaign / the total number of new email subscribers obtained = cost per subscriber

For example: $5000 / 20,000 = $0.25 / subscriber

By knowing cost per subscriber, in addition to revenue per subscriber, you can identify where to best to allocate budgets for acquisition and special projects.

Revenue From Email (Overall)

Finally, I also recommend understanding how revenue from your email program overall compares with revenue from other channels such as PPC, Social, SMS, Display, Affiliate, etc.


As an overall digital marketing manager, knowing the sources of revenue from each channel should also play a part in budget allocation. At the same time, be aware that this can be something of a self-fulfilling prophecy, wherein budget allocations can determine the channel’s revenue. According to the Direct Marketing Association, email easily outperforms other channels in generating return:

Email: $39.40 for every dollar spent

Search: $22.38 for every dollar spent

Display: $19.71 for every dollar spent

Social: $12.90 for every dollar spent

Just as email program recommendations are based on data, I recommend making your case for budget allocation through use of the metrics above.

Diners Club Increases Conversion to Sale by 50% using TPN Leads

December 4th, 2012

Diners Club Logo v2

We are pleased to have received the following client testimonial from Diners Club:

Diners Club engaged 3Di to accelerate our lead generation programme to supplement our current activity. Prior to using 3Di’s services we were using other traditional forms of marketing e.g in-house email, mail and cold call telemarketing via purchased databases.

The methods we were using previously have provided us with mixed results. Telemarketing is a reasonably successful method, one that we will continue to grow. However, we wanted to work smarter. Rather than solely buying cold data we were keen to find an alternative and find warmer leads somehow for our telesales team which would deliver better results and also help us reduce staff costs.

We began integrating 3Di’s TPN Leads product into our outbound call centre process early in 2012 and have not looked back.

Our overall conversion to sale ratio has increased by more than 50% by using TPN Leads.

The best part about the service we have received from 3Di is the fact that we deal with one account manager who knows his stuff and is truly passionate about helping us to achieve our results. Our account manager has gone out of his way many times to help us with tight timeframes and changes that needed to be made in a hurry. We also appreciated the help and ideas that were put forward to us when we were looking to enhance our lead generation with 3Di’s expertise. The advice we received was always honest and reliable.

I would recommend using the services of 3Di as they have a broad spectrum of digital marketing and lead generation services to tap into. They have their finger on the pulse and they are very helpful and knowledgeable. Best of all, the value Diners Club receives from 3Di’s TPN Leads product is very good indeed, if not the best compared to our other lead generation channels.

Theresa Cowan
Call Centre Manager
Diners Club (NZ) Limited

IAB: Monthly Unique Browsers Measure No Longer Reliable Metric But Daily is OK

December 3rd, 2012


In a press release today, online advertising industry body the Interactive Advertising Bureau (IAB) has announced it no longer feels unique browsers is a reliable metric for online traffic.

IAB Australia has issued a Notice of Intent to the industry advising it is retiring the Monthly Unique Browser (UB) metric in Australia as of 1st February 2013. Following that date, IAB has advised the Monthly UB metric should not be used as an audience proxy and in line with this move Nielsen will stop reporting this metric within its Market Intelligence product.

Instead, the use of a people-based metric Unique Audience (UA) should be used. The Monthly UB metric is being retired as it is no longer in line with the active online population or even total population. Monthly UBs now total over 90 million in Australia – outnumbering the actual human online population by a factor of more than five. The decision to retire the metric was made by the IAB Measurement Council with the MFA and has the support of AANA.

Gai Le Roy, IAB Australia’s Director of Research, commented: “The Monthly UB metric has been used in the Australian market for more than 15 years but now that it no longer equals a person, it has outlived its usefulness as a proxy for monthly visitation to website figures and should not be used.”

“As an industry we are looking for more accurate and meaningful data and it’s clear that the Monthly UB metric is become increasingly inaccurate, less useful and even misleading. Indeed with the proliferation of devices and browsers in use by consumers, the disparity between browsers and actual people will only accelerate,” said Le Roy.

While the Monthly UB metric is being retired, the Average Daily UB metric may still be used as the IAB Measurement Council has determined that the active online population in Australia is aligned with the Average Daily UB numbers.

In conducting its review, the Measurement Council found that while the Monthly Unique Browsers inflation is most noticeable at a Market Aggregate level, the top five Publishers in Nielsen’s Market Intelligence (MI) often have a greater number of Monthly Unique Browsers than total Australian Active Online universe of 16.1 million people – an impossible and implausible amount.

Source: IAB press release

IAB say the reason behind this is because:

The massive growth in Monthly Unique Browsers from just over 25 million in 2005 to 90 million in 2012. Clearly such a ‘user level’ is not possible in a country with a total population of just over 22 million people and with recent estimates of the Australian Active Online Universe being just over 16 million. However, pleasingly it can be noted that the Average Daily Unique Browsers is both at a level below that of the population and reflecting a plausible growth.

IAB graph

In 2000, the main locations for accessing the internet were home and/or work using a PC or laptop.
People typically used one browser on each machine so if a person accessed from home and from work
they would generate 2 browsers cookies.
In 2012, we now have on average 1.4 laptops per household and 1.7 desktops.  90% of people have
accessed the internet from home, with 57% of people having accessed from work.   However, now in
addition to home and work we also see that 55% of the online population have accessed from a mobile,
20% from a tablet, 18% from a games console and 11% from a TV. (Sources: ownership from Nielsen
CMV, usage from Nielsen online consumer report)4
Further to this, a user typically doesn’t generate just one cookie per device.   Instead they often
generate multiple cookies, particularly as users now tend to have more than one browser and are
tending to clear out their browsers more frequently which generates new cookies.
The nett effect is that a single user now typically generates many cookies across multiple devices and
browsers, and the longer the time period the more the cookie duplication happens (which is why
Monthly Unique Browsers are affected more than Average Daily Unique Browsers).The research found that in 2000, the main locations for accessing the internet were home and/or work using a PC or laptop.  People typically used one browser on each machine so if a person accessed from home and from work  they would generate 2 browsers cookies.

The research found that in 2000, the main locations for accessing the internet were home and/or work using a PC or laptop. People typically used one browser on each machine so if a person accessed from home and from work they would generate 2 browsers cookies.

However in 2012, we now have on average 1.4 laptops per household and 1.7 desktops. 90% of people have accessed the internet from home, with 57% of people having accessed from work. However, now in addition to home and work we also see that 55% of the online population have accessed from a mobile, 20% from a tablet, 18% from a games console and 11% from a TV. (Sources: ownership from Nielsen CMV, usage from Nielsen online consumer report)

Further to this, a user typically doesn’t generate just one cookie per device. Instead they often generate multiple cookies, particularly as users now tend to have more than one browser and are tending to clear out their browsers more frequently which generates new cookies. The nett effect is that a single user now typically generates many cookies across multiple devices and browsers, and the longer the time period the more the cookie duplication happens (which is why Monthly Unique Browsers are affected more than Average Daily Unique Browsers).

See the IAB’s FAQs document on why they have announced monthly UB as an unreliable metric here

ADMA Announces New Privacy Laws

December 3rd, 2012

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Big Changes on the Horizon for  Data-Driven Marketers

ADMA has announced that the new Australian Privacy law  passed by Parliament on Thursday is due to come into effect on 24 March 2013.

The law will introduce changes to how marketers and advertisers can collect, use, hold and disclose customer information and other personal information relating to prospects and individuals.

Due to ongoing lobbying by ADMA and ADMA member companies, the Government made some last minute changes to the new law before it was passed to reduce the impact of the legislation on marketers and advertisers. In particular, the Government:

  • - Removed the statement that DM is prohibited and replaced with a new statement that clarifies that DM is permitted within certain parameters.
  • - Reduced the requirement to include opt-out notices in all marketing communications.
  • - Limited the need to offer customers the ability to engage under a pseudonym.
  • - Reconfigured the requirements on overseas transfer of data.
  • - Extended the period of time that companies will be given to comply from 9 months to 15 months. (Starting 24 March 2013)

Although ADMA is pleased that the immediate issues facing marketers and advertisers were addressed, it considers that, in general, the law is out-of-touch and out-of-date and will become an increasing hindrance as we continue to move to a data-driven digital economy.

Also, there are still concerns with how the law will be interpreted and enforced. The remaining concerns include:

  • - The new definition of ‘personal information’ could result in the Privacy Act now applying to information that is currently not considered ‘personal’. For example, certain information collected through cookies and types of Big Data.
  • - The new rules require marketing communications to include an opt-out notice (including to existing customers) in all cases where the marketer has used data collected from a third party.
  • - This could include, for example, where a marketer has appended data to a customer database; extracted customer information from a social media site; or used behavioural data from a third party site.
  • - Fines of up to $1.1m apply and it remains unclear whether this is calculated on a per ‘incident’ or per ‘record’ basis.

ADMA will be drafting guidelines for marketers and advertisers to clarify the new law and assist with compliance and will also produce a webinar series and education course to assist businesses interpret the provisions and how they apply to traditional channels, online, social media and mobile.

For more information please visit WWW.ADMA.COM.AU