(Version A)

And this?

(Version B)

Well, when it comes to getting people to click on a link,  the first email increases the likelihood that they will click by over 100%. But why?

Every year, the Economic Developers Association of Canada (EDAC) conducts a survey about the marketing practices of its membership. This year’s survey was receiving a much lower response rate than 2009, and EDAC wanted to send out a final reminder to try to boost response rates. To ensure that the email garnered the maximum response, we conducted a simple A/B test with the emails you see above. The emails were identical in subject line and message content, but we swapped the image of a smiling, pointing human face with a pie chart in versions A and B.

We started by picking the pie chart image that fit with the idea of the survey. But then we got to thinking that there is a lot of research out there that shows a big jump in clicks and opens when you have human subjects looking at or pointing to the call to action in your message. We decided to test it out for ourselves and sent Version A and Version B to a subset of the overall email list (10% each) and ran the test for six hours. The results are shown below:

Open Rates

• Version A (smiling pointer) – 25%
• Version B (pie chart) – 13%

Click Rates

• Version A (smiling pointer) – 8%
• Version B (pie chart) – 4%

Based on the size of EDAC’s mailing list, we can extrapolate that they received an estimated 46 extra clicks (100%) and 93 extra opens (90%) by sending the winning Version A to the remaining 80% of their mailing list, rather than Version B.

Results:

Sure enough, the response rate to the survey doubled within a week of sending out the reminder email, bringing them back up to 2009 levels. Had we sent out original pie chart version without testing, we’d likely be extending the survey deadline and sending another email plea.

We’ve blogged before about the importance of doing A/B testing with your email campaigns. This recent A/B test for EDAC using our 3mail Email Campaign Tool (shameless plug) demonstrates the incredible difference in results that can be achieved by something as simple as changing a single image.

• Be Specific in Your Messaging: Why “Live, Work, Play” and other clichés will harm your marketing efforts.
• Does Your Economic Development Website Speak Effectively to Site Selectors?:  Highlights from a US-based study of site selectors regarding their frustrations and preferences when it comes to ec dev web properties.
• 8 Tips for Getting Started with Social Media and Email: As more economic developers embrace new social tools, it is important to realize that when it comes to these new marketing channels, the old rules simply don’t apply. Here are 8 tips that cover ideas, etiquette and advice for getting started.
• Has Branding Become a Dirty Word? Our most popular EDAC White Paper, where we explore myths and misconceptions about place branding.
• Branding a City: One of our very first blog posts, this one covers off why place branding is different, and more complex, than other types of branding.
• Place Branding Inspiration Gallery: Over the years, we’ve reviewed quite a few logos and re-branding efforts from cities and regions around the world. Here are 7 posts to get you thinking about your own visual identity and branding program.

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- Heather Ciere, On3 Communication Design

My reaction when I saw this was “Neat!” And it is. It’s a really different and interesting concept, and a surprisingly hip little move on the part of the Canadian government (for which they should be applauded). That said, I’m skeptical about how effective it will be. Surely the American passerbys will also think it is neat, but will some random tweets and photos be enough to lure their tourist dollars to Canada? Or will they simply say “neat” and carry on with their lives? The displays ran until the end of July, so time will tell if they had any measurable impact.

You can learn more here.

- Found via Brand Arcade

Hands off my marketing budget! – How to fight for your economic development marketing program

Marketing can be tough to conceptualize, difficult to measure, and is usually the first on the chopping block when it’s time to reduce spending. This white paper will examine each of these challenges and provide concrete responses and strategies for addressing them.

Click here to download the free white paper.

Past white papers in this series for Economic Development Professionals can be found here.

“…the author looked at the financial advantages, and costs, that clusters provided for firms throughout the life cycle of two innovative industries — semiconductors and pharmaceuticals. He examined 31 years of data on 194 publicly traded companies, which enabled him to see how clustered and nonclustered firms performed at various points in an industry’s life cycle. Surprisingly, the author found no clear evidence that clusters enhance a firm’s financial performance.”

Sounds like more research is needed, and the study does not rule out the non-financial benefits that may be realized with clustering strategies, but it does have implications an idea that has been widely accepted as an economic development truth.

Read more here via Place Marketing Group.

“It’s a worldwide campaign to let the rest of the world know that Iceland isn’t completely covered in ash,” Icelandic tourist board director of marketing Jon Gunnar Borgthorsson said.

The country has created a new website: inspiredbyiceland.com and a really wonderful ad (shown below) asking Icelanders to spread the word via Facebook, Twitter and YouTube in an effort to improve perceptions and salvage the tourism industry that the country has come to rely on so heavily since its major banks collapsed in 2008.

Inspired by Iceland Video from Inspired By Iceland on Vimeo.

Appealing to people that know and love the country to act as ambassadors in the face of a tourism crisis is smart strategy on Iceland’s part. The ad is beautifully executed, the cinematography is breathtaking and the ad is brimming with personality – from the all the crazy dancers to the naked couple to the old guys in the pool.

I love that group dancing timing is always off, I love that the people are laughing at each other during the filming, I love that the guy almost falls off his bike – it genuinely portrays Iceland and its people in a wonderful and honest light. The music is catchy too – “My heart is beating like a jungle drum” by Iceland’s Emiliana Torrini.

It may have taken a giant ash cloud to do it, but this campaign out of Iceland is top-notch.

From The Sydney Morning Herald via AdPulp.

Research shows that companies that consistently advertise even during more conservative economic times perform better in the long run. A McGraw-Hill Research study looking at 600 companies from 1980 to 1985 found that those businesses which chose to maintain or raise their level of advertising expenditures during the 1981 and 1982 recession had significantly higher sales after the economy recovered. Specifically, companies that advertised aggressively during the recession had sales 256% higher than those that did not continue to advertise.

Further, this is a unique opportunity that is not available in a healthier economy:  As reflected in a Kellogg School of Management study, increasing advertising spending during economic expansion often yields no improvement in market share, because 80% of your competitors are also increasing their spending. Conversely, the Association of National Advertisers found that at least half of businesses reduce their adverting spend during an economic downturn.

When it comes to the Canadian economic development profession, a recent survey found a widening gap between EDOs that chose to increase or decrease marketing spending during the economically tumultuous conditions of 2009. According to the study, 62% of those that increased their marketing spending in 2009 planned to continue increased spending in 2010. In contrast, only 25% of those that cut back in 2009 planned to increase 2010 spending. Almost 30% of 2009 decreasers planned to further decrease budgets in 2010.

According to the Place Marketing Group:

“While some EDOs see little choice but to slash marketing spending, it is a step that risks a loss of future growth opportunities. Experts agree that those who maintain spending often emerge the strongest when things pick up. Cuts in marketing will show the most and help the least.”

The reality is that even under the bleakest economic conditions, clients and customers don’t stop making decisions. Given their own budget challenges, these decisions are likely being made with greater discernment and consideration. For economic developers, this means that dropping out of the race of promoting your municipality to save money in the short term puts you at a disadvantage compared to peers who choose to maintain marketing and communication efforts.

So what about your community? Are you spending for long-term success or cutting for short-term savings?

1. Hasting County

Hastings County recently released the first Canadian iPhone app for economic development. Dubbed “iHastings”, the app allows users to view news, events, videos and link up with Hastings County in various social forums like Twitter.

2. Calgary

The City of Calgary has also come out with a “Build a Pass” app that allows citizens to create custom recreation passes for individuals and families. It would be nice if there was a way to actually purchase the pass as part of the app, but perhaps that feature is coming with future versions.

Calgary also has a great walking tour app of downtown public art, complete with maps and audio descriptions you can play while you stand and admire at your own pace. Walking tour apps are a dime a dozen, but this is one of the first I’ve seen developed proactively by a municipality rather than a travel or GPS company.

3. Chicago

Chicago has partnered with foursquare in one of the most innovative social web offerings we’ve seen come out of a city. It has both tourism and economic development applications to it, not to mention the value that comes from leveraging such a popular social platform.

As time goes on, expect to see mobile apps for cities become as commonplace as annual reports and brochures. GPS-enabled smartphones make this a perfect medium for showing off what a city has to offer.

Our predictions

So what does on3 predict for municipal mobile apps? We’re glad you asked. Here are some of the things we’d love to see cities develop:

• Site selection tools – including searchable real estate directories
• GPS-based business directories
• Tax and incentive calculators
• More foursquare integration
• More open municipal data – see this post for a great backgrounder on this trend

Have any other ideas? Leave them in the comments!