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Does CAN-SPAM Hurt Compliant Marketers? 
ClickZ, E-Mail Marketing
BY Paul Soltoff | March 7, 2005 

Want to hear something outrageous?

Since CAN-SPAM took effect just over a year ago, we've seen our clients' delivery and open rates drop. When e-mail does get through, it works just as well as it did before CAN-SPAM, in some cases even better. Unfortunately, less e-mail is getting past gatekeepers. We think we know why.

According to an MX Logic study:

97 percent of unsolicited commercial e-mail (UCE) still flouts the law.

75 percent of all e-mail sent in 2004 was spam.
The law intended to deter spammers actually did the opposite. ISPs have been forced to implement tighter spam-filtering rules to better serve their customers, shutting out law-abiding e-mail marketers.

We legitimate e-mail marketers follow the letter of the law, making sure we use the best practices it's based on. We do this to comply with the act and because it's ethically right.

Government enforcement hasn't played a very big role in the situation thus far. ClickZ's Pamela Parker wrote that one FTC official said the FTC is "likely" to start prosecuting legitimate companies who aren't in compliance with the CAN-SPAM Act. Although the FTC so far has focused on fraud in its anti-spam enforcement efforts, with occasional dabbling in pornography, that may be about to change.

So far, so good. Yet there are two disturbing trends:

CAN-SPAM doesn't deter the bad guys who refuse to play by the rules.

Increasingly more legitimate, compliant e-mail is blocked and filtered.
Talking With Jane Kaiser

I recently spoke with Jane Kaiser, president of Eclipse Direct Marketing. She's in the acquisition e-mail marketing trenches every day and has much the same take on the situation.

Soltoff: Is CAN-SPAM hurting the e-mail marketers you work with?

Kaiser: While the law in and of itself was, and still is, very much needed, CAN-SPAM is contributing to the decline in e-mail marketing revenue on two important levels. First, the government is selectively enforcing the law by only going after high-profile cases so that the public is reassured that measures are being taken to reduce the problem. At the same time, the FTC and Department of Justice are slowly moving forward, spam abuse continues to grow.

Soltoff: It appears after all this time, they haven't gone after all the no-name guys who clog our mailboxes.

Kaiser: Pretty much. We also see that a number of companies are receiving bad legal advice regarding the correct interpretation of the law. The net result is that individual marketers are building overly complex messages to be CAN-SPAM compliant. The reality for today's marketer is that the more complexity associated with a message, the greater the likelihood that an ISP will filter out that message.

Soltoff: I agree. We're troubled at times on how to work with ISPs to improve deliverability for our clients because the rules change every day. Have you seen anything from the ISPs to help the cause?

Kaiser: There exists a subtle adversarial relationship between ISPs and all e-mail marketers -- both responsible marketers and spammers. The ISPs have built their filters in such a way that most common, best-practice marketing phrases are being identified and subsequently suppressed. Increasingly, marketers are finding that in order to get a message past an ISP Bayesian filter, the marketer has to dumb-down the message to such an extent that the recipient has a hard time associating the message with any particular brand.

Soltoff: They're rendering e-mail practically useless, wouldn't you agree?

Kaiser: Yes. From an economic standpoint, it's understandable why the ISPs would not see any difference between responsible e-mail and spam. All commercial e-mail, both responsible e-mail and spam, is an expense for ISPs to deliver, both in processor time and in customer service support, to respond to the "vocal minority" that issue complaints. At the same time, the ISPs are not compensated for their efforts.

Making CAN-SPAM More Effective

This isn't necessarily CAN-SPAM's fault, but how ISPs respond to the law. Other internal reasons encourage filtering e-mail that should be delivered.

Here's what must be done:

Establish one set of standards for all ISPs to follow for filtering and blocking e-mail.

Establish a standard registry of legitimate e-mail marketers allowed by all ISPs, just as there are domain registration standards and postal change of address rules.
Until both happen, CAN-SPAM will continue to hurt the good guys and spur on the bad guys.

Since CAN-SPAM took effect just over a year ago, we've seen our clients' delivery and open rates drop. When e-mail does get through, it works just as well as it did before CAN-SPAM, in some cases even better. Unfortunately, less e-mail is getting past gatekeepers.

In part one, we examined how CAN-SPAM has harmed legitimate direct marketers. Now, we'll look at the nitty-gritty of what happens when e-mail hits ISPs and what can be done to help messages from legitimate e-mail marketers get through. 

We spend way too much time worrying about getting e-mail messages into customers' inboxes instead of being deleted or redirected to bulk or spam folders by their ISPs. Regardless of your position on CAN-SPAM, when an average 30 percent of legitimate permission-based e-mail is deleted or redirected to spam folders, we have a problem:

To get a handle on the situation, I spoke with Deirdre Baird, president of Pivotal Veracity, a company that tracks what happens to e-mail when it hits the ISPs. Our conversation provided insight into the often-confusing world of e-mail deliverability. 

"Most marketers understand the impact their content and subject line can have on delivery," said Baird. "However, content-related problems, while still important, are by no means the only problems that are impacting delivery today. Most marketers tend to 'blame' the content when delivery suffers, when, in fact, issues completely unrelated to content are often the problem."

Taking Baird's assessment into account, some recommendations for your e-mail marketing efforts.

Consistent, Timely Bounce Management

Many large ISPs block or redirect e-mail to the spam folder if the mailer sends an excessive number of messages to invalid e-mail addresses. The problem is double-edged. ISPs send bounce notices to mailers for a variety of reasons. These reasons are generally grouped into transitional problems ("soft bounces") and permanent problems ("hard bounces"). 

A soft bounce typically makes it through the mail server's front gate but bounces back due to some issue with the recipient's e-mail inbox. A soft bounce could occur because of a full mailbox, an overextended or down server, too large a message, user who is inactive for an extended time, and other reasons.

There are over 30 different types of hard bounces, the most common being an invalid or nonexistent e-mail address. Others can relate to too many recipients, an invalid media type, and large message sizes that exceed what the receiver can accept. Hard bounces never get past the mail server's front gate.

Every organization needs rules to handle e-mail bounces. We remove e-mail from our files after two hard bounces or five soft bounces. We've found this threshold best to validate the nature of the bounces.

Proper HTML Construction

HTML e-mail is commonplace. Yet the vast majority of HTML messages aren't compliant with World Wide Web Consortium (W3C) standards for HTML construction. 

Bad HTML construction is the largest mailer-controlled reason for improper message rendering. This can mean images don't show up correctly, links don't work, tables are poorly nested, and other issues. Some ISPs block or redirect improperly constructed e-mail.

HTML designers and marketers should develop a checklist for viewing their messages in different e-mail clients. Not everyone uses Microsoft Outlook. Quite a few people use e-mail clients from AOL and Eudora. And don't forget free Web-based e-mail, such as Yahoo! and Hotmail. Each has its own HTML construction issues.

IP-Related Issues and History

An inordinate number of delivery problems are related to a mailer's IP infrastructure. These issues have a direct effect on delivery and result in blocked mail or redirects to spam folders. 

The issues depend on whether you use an in-house solution or an external ASP (define) to send e-mail. Issues for in-house mailers typically relate to insecure or improperly configured infrastructures that are fairly easy to fix. Examples include not having reverse DNS (define) enabled, running insecure versions of form mail, and having an improper SPF (define) setup. Have your IT group validate that your infrastructure is compliant with ISP spam filter rules.

For mailers who utilize external vendors, the most common IP-related issue is use of shared IPs. Many e-mail delivery vendors continue to deploy mail for many clients from the same IP address. One mailer's activity can affect every other mailer on the same IP address. If one mailer is blocked, every mailer is blocked. Review the provider and ensure its IP address isn't on block lists. Spam Assassin's list is a good place to start.

If you have a really good relationship with any of the major ISPs, help everyone's cause by lobbying them to adopt standards that once and for all help defeat the bad guys and make legitimate e-mail more deliverable.



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