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Canada Ripe For Online Picking

…At least according to “a report published today by Marketing Sherpa.”:http://www.marketingsherpa.com/article.php?ident=27474 And cultural differences extend to the online world – we’re more wired and we spend more time online than our neighbours to the south. We are, according to Marketing Sherpa, “an online market ripe for picking”. The challenges – two languages, tougher privacy laws, and lagging adoption of ecommerce. The opportunities – if you can get around the obstacles – a strong Canadian dollar that allows US retailers to be more competitive and a GDP worth over a trillion dollars. The report also contains some general suggestions for US companies marketing to Canadian consumers, including specific advice for email campaigns, search campaigns and postal direct mail.
While I agree wholeheartedly with much of the information presented, I have to say I’m not 100% on-side with the email numbers – our own client results differ significantly from those reported as “Canadian standard” email response rates. On the one hand, we would consider the 25% open rates reported in one section of the report concerningly low for a newsletter campaign. On the other hand, the 55% average reported by IAB seems optimistic given the limited budgets and resources most of our Canadian clients struggle with. Are the numbers out of context? It isn’t geographical – our client lists include subscribers from across the country. Even so, misleading numbers aren’t the real story here.

What most concerns me is the blatant (and, unfortunately, very accurate) implication that Canadian marketers’ level of sophistication about testing and segmentation in their online marketing campaigns won’t provide much competition for the sharp skills of our southern competitors. *While we’re still struggling to convince businesses that Outlook is not an email marketing tool,* Canadian businesses are cutting a wide path of opportunity for international competitors that’s only made more attractive by our strong dollar.

One Comment

  1. Tamera Kremer
    Tamera Kremer June 4, 2006

    This isn’t that far from the truth.. sad of course, but not fated IMO. The adoption rate of online for Canadian business, as well as for our big agencies (until nine dots dragged them kicking and screaming into the space out of necessity), lags seriously behind as your “Outlook as an email tool” comment brings into stark relief. I actually just had that conversation with a client recently. In 2006. Unbelievable.
    I think we, as marketers, have an opportunity to push for change before the guys from down south swoop in, but only if we are willing to be more aggressive about pushing interactive and integration… along with testing.

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