Jan 8, 2013
AOL and Hotmail Users Spend More than Gmail Users, and Other Research Finds
Now that the holiday rush is behind us, it’s time to recap some fun research finds from 2012.
We’ve updated our research page, so check it out for any details I gloss over here. Let’s get started.
AOL and Hotmail readers spend more than Gmail readers
Using our eCommerce360 feature, users are able to track their customers from a MailChimp email campaign all the way to an order on their website. The user can then pass this order information back to MailChimp to keep track of their subscribers’ purchases and the return of each email campaign.
For MailChimp users conducting online retail, tracking purchases beats the pants off merely tracking clicks, so over the past year we’ve built up a lot of eCommerce360 data from those who are syncing email address purchase data back to us.
Well, we wondered if we could use this data to say anything about the spending habits of email addresses by domain. For example, do AOL users spend more than Gmail users?
It’s a deceptively simple question, but our users operate across the globe in all sorts of currencies. (I didn’t know there were 20,000 Vietnamese Dong in 1 US dollar until I started trying to answer this question.) Furthermore, each list in each MailChimp account has different emails and domains on it, so both AOL and Gmail, for example, may not be present on the same list.
We managed to get around these difficulties by staging one-on-one fights between any two email addresses making eCommerce360 orders in a user’s account. This yielded individual data points of the form, "RoryGilmore@yahoo.com spent 10% more on user X than JessMariano@gmail.com." Once everything had been transformed from raw currency into percents, we then aggregated to the domain level across all users.
What we found was surprising:
Read the chart from top to bottom. Hotmail email addresses tend to spend more than the other big ISPs. A full 6% more than Yahoo addresses! Gmail and Comcast clock in at the low end.
The operating theory right now is that Hotmail and AOL addresses skew older in age and hence have more disposable income. Right now a 16 year old is more likely to sign up for a Gmail address than an AOL address, but I doubt they’re dropping their minimum wage dollars on Crate & Barrel couches just yet. If you’ve got a different theory, drop in a comment.
Get out of the Daily Deals business and into the Priesthood
We’ve updated the stats by industry and stats by business size pages, and some really interesting facts bubbled up.
For example, daily deals have the lowest average campaign open rate at 19%, while religious newsletters have the highest at 48%. Overall, photo and video businesses engage users extremely well from both an opens and clicks perspective.
From an abuse perspective, the construction industry, interestingly enough, has the highest abuse and hard bounce rates. Daily deals actually have some of the lowest unsub, abuse, and bounce numbers.
So why would daily deals have some of the worst engagement but some of the best scores regarding negative feedback? First of all, if you’re being flogged deals each day, there’s a chance you’re going to disengage, become a zombie, relegate the mail to a folder, etc. By that same token, however, you’re too disengaged to unsubscribe or click the spam button. The mail is just background noise to be ignored, both positively and negatively.
We’ve said it before: Purchased lists are bad news
We buy purchased lists, usually from the trunk of an Albanian’s car, obscured by the shadows of an empty parking garage. The loose piles of printed email addresses flutter in the breeze when we stuff them into the inner breast pockets of our khaki trenchcoats.
No, it’s less noir than that. Heck, some users actually fess up and just tell us they’ve uploaded one (thanks for that, by the way).
We then push the lists into the Email Genome Project database, where we compare them to our users’ lists. If a user’s list comes up as a match with a purchased list, things get ugly.
But why? Is our anti-purchased list stance just an aesthetic or moral one? Sure, but it’s also a pragmatic one. Purchased lists lead to the kind of stats that get ISPs to block our IP addresses.
For 2012, here’s how complaint rates rose with a user’s correlation with our purchased list database:
In the graph above, we can see that a 100% purchased list has an abuse rate nearly 6 times higher than a 0% purchase correlated list. Yikes!
Check out the rest
These’s more goodness where those three stats came from, so take look at our research and get some knowledge!


Maarit Durity
Great post, plan to share it with my own clients and subscribers. Thanks!
01.08.2013
Chris Allison
I think part of the reason daily deals get low opens is that people also judge all of the deals by the subject deal. If the deal in the subject of the email isn’t attractive or is out of reach, they don’t open it. I get many travel deal emails from sites like Groupon etc. but only open the ones that sound affordable (i.e. driving to Tennessee vs. flying to the Northwest) and interesting.
01.08.2013
Rishi
Enjoyed this post very much. I like how you guys share all the knowledge that comes with sending billions of emails. Thanks!
01.08.2013
Thomas Spear
I agree with Chris Allison’s assessment of the low opens, as well as the article’s theory about it being relegated to a folder. Another cause may be that most mail providers and mail clients now-a-days won’t open embedded images until you tell them to. Although its less likely, the receivers of those emails may read the email without images, thus preventing the web beacon image(s) from loading.
As for gmail vs hotmail. You need to check into the demographics of the users of each. AOL started as an ISP for everyone, Hotmail was the first free email service outside of AOL. Google, on the other hand, started as a search company. Yes, some of it has to do with the age of the users and the accounts at AOL, but who uses search more than anyone? Tech people.
I’m a user of gmail since beta, myself, and while there are some non-techies on there, what I’ve seen is that most of them were recruited by us techies. The young people typically go with yahoo, hotmail, or (now) facebook email, unless they are technical.
So, to recap:
Gmail — mostly tech-savvy people, their friends, and young professionals
Yahoo — mostly teens and young adults that haven’t started a career
Hotmail — 30’s and up that abandoned AOL but needed email before AOL offered email outside of their dial-up service
AOL — people that either never abandoned AOL, and retained their email once they shut down the dial-up service
Comcast — everyone else that doesn’t have a 3rd party email provider — most likely low income and not very technical
This is all my 2 cents and from observations of people I know and those that they know, but may shed some light or be a pointer in the right direction — take it with a grain of salt either way.
01.09.2013
Quikboy
Great generalizations… /s
Lol. I’ve found Hotmail and Yahoo! users to be very similar. They have the most users combined than any other e-mail service period, and represent a wide variety of demographics. And yes, some tech-savvy people actually prefer one of these over GMail or AOL. I happen to be a heavy Outlook.com user (which is where Hotmail’s tech and brand is transitioning to) and love it. Also, some tech-savvy people are more aware of what the ToS for each and every one of these services offer and find GMail doesn’t suit their preferences.
GMail – Not as many tech-savvy users as it used to be. There’s plenty of young and old people using it, but it’s particular popular with people that use Google’s services a lot. I know several that swear by it, and others that hate it.
Hotmail users love to use Messenger (which will now be Skype), use a lot of Microsoft services (Xbox, SkyDrive, etc.), and represent a wide variety of demographics than just this 30+ club you claim. I made a Hotmail account before I used AOL, and I’m 21 right now.
AOL – People that still use AIM for chatting and don’t care too much about e-mail features.
Yahoo! – People particularly in Asian countries or people who happen to have a lot of friends on Y! Messenger. Or maybe they like the way the web-client version looks.
Comcast (or any ISP-based) – people that wanted a free e-mail and it was the most easiet to set-up for them. My dad uses it and he has problems time to time that I wish he’d using something else that’s better.
These are also my observations as well, though I have a very wide circle of friends and acquaintances and am very kept up with web trends. Take it with a grain of salt as well.
01.09.2013
caiDOTio
Great post. Thank you for sharing these insights.
01.09.2013
John McCabe
Don’t agree at all with Thomas. In our market it’s all gmail and second would be hotmail. I’m on gmail as is everyone I know and we are not techies.
Surely there is an anomaly in that the older demographic , supposedly on aol , are less likely to buy online anyway!
More research I think is needed, and by them there will be some new variable in the equation.
01.09.2013
ShavonnahTiera
I wouldn’t be surprised if this data was skewed a bit. I for one have a hotmail and yahoo account just to send all of my deals/junk/social mail and use gmail for productivity.
01.09.2013
Quikboy
Yay for more anecdotal accounts. I’ve heard people use ANY service as their “deals/junk/social” mail, and a separate service for productivity.
Yes, people actually use non-Gmail accounts for productive and semi-professional ways. I use Outlook.com personally for that. I also use an old Hotmail address (which is becoming Outlook.com) for the deals/junk/social stuff. I also use it for their SkyDrive and Messenger and formerly Zune services. I kept a Yahoo! e-mail for Yahoo! Answers and Flickr purposes, and used to ages ago for Y! Messenger. I only keep a Gmail account for access Google Docs that I need to edit from time-to-time and was pretty much forced to when YouTube required a Google account.
Everyone’s account usage is different and it’s hard to quantify or estimate demographic patterns from e-mail services. It’s best to be attentive to users of all the main e-mail services rather than trying to judge someone on the basis of the letters after the @ symbol.
01.09.2013
Quikboy
I wonder if they looked into e-mail aggregation and forwarding. I hear some people forward all incoming e-mail accounts from one service to a completely different service, for whatever that may be.
Maybe some people prefer certain e-mail providers and open up a stage e-mail address to give some kind of appearance to the sender. Whether it’s to appear more professional, it’s an old e-mail account, or whatever, I’m quite sure there are lots of people that aggregate and forward all e-mails from one service to another service.
01.09.2013
David
Use with caution!
About 7 years ago one client of mine found the exact same – that AOL email addresses had a higher $ per name on their lists across all acquisition channels compared to other @domain.com email addresses.
The following months, marketers at that client put their efforts into acquiring more AOL names, marketing more on AOL, and discounted many other valuable acquisition channels, etc.
This is of course a very dangerous assumption, like the one some years back that made Tuesday a popular day to market new things “because people were more receptive” (based on an apocryphal story about a study IBM did in the 1970s).
While it may be true that as an average across all lists AOL have higher $ per name, at this client their revenue increased across all customers when I had them do some proper segmentation and split testing rather than simply emailing the same offer to the whole list. Averages, as we know, hide a lot of useful data.
AOL subscribers because of their demographic http://www.quantcast.com/aol.com may have more to spend than other ISP subscribers but there’s more revenue in every list by properly testing different approaches.
Establishing a better relationship with customers delivers more revenue, not whether they use AOL.
Good research. Caveat Analystae :-) I fully expect this will become a study of urban legend and fully viral quite soon.
01.09.2013
John MailChimp
David, you’re absolutely right. These are high level, literally global, results. When you’ve got ecommerce, demographic, etc. data on your own subscribers, then you should use your data over high-level results, conventional wisdom, magic spells, whatever because there are unique individuals behind those addresses!
01.09.2013
Alex
Extensive research, gd job.. thanks for sharing..
01.10.2013
house in kathmandu
really important research.
01.10.2013
Geoff Rennison
Great guys. Thanks.
01.10.2013
Mike Minh
Looks a bit like statistics for sake of statistics. Global results have to be normalised for earning power of each country. The amount of goods you can buy for 20,000 Vietnamese Dong or 1 US$ varies by country, as does the percentage of weekly average income. I am afraid economics/statistics is a little bit more complex than just throwing some figures in a spreadsheet. Two decimal digits suggest a precision which this kind of data can’t have.
Nice idea, seriously, but it didn’t work.
01.10.2013
John MailChimp
Hey Mike. The data set was too big for a spreadsheet. We used PostgreSQL!
As for the economics, we’re merely saying that globally, for recipients of email marketing material, two email addresses receiving the same material from the same sender *on average* spend differently based on their domain. Since the comparisons were all inter-account and then aggregated, there are plenty of problems with the analysis, but I’m not sure buying power is one of them; we’re not directly comparing a Vietnamese address spending in Dong buying a tshirt versus a US address spending in dollars buying a TV.
Rather, what I find problematic is the idea that one user might be selling shirts and another might be selling TVs. In the former case, we might see a gmail address spend $100 and an AOL address spend $150. In the latter case, we might see a gmail address spend $1000, and an AOL address spend $800. This data would be converted into records like [Gmail, AOL, 150%] and [Gmail, AOL, 80%] before being aggregated at a global level. The absolute cost of the goods is lost.
Of course, the advantage of doing the analysis this way is that it avoids currency conversion from account to account in the global analysis. Also, an argument can be made that the absolute cost of goods *should* be ignored, because we want to treat all these contexts (TVs, shirts, etc.) the same.
01.10.2013
Noelle
Great research, the analysis makes sense to me. Enjoyed the comments, too!
01.10.2013
Ja Stone
While this thought mightn’t apply to AOL, I wonder how many people (like me) have a throw away email that they use for purchases? I use Gmail for ‘real’ email and a Hotmail address (ok addresses) for purchases and other emails that I likely don’t want and won’t read
01.10.2013
Jeanne Johansen
Great information for me who is just starting out in this web business.
01.10.2013
RMC
I think you should also take junk email accounts into account. I make all purchases using my hotmail email address because I don’t want spam coming into the email accounts I use for school, business, and personal email. I like gmail and my Stouffer Communications email accounts better, so I use those for everything else.
01.11.2013
congtynamtrung
Love it
Great Guys
01.12.2013
Gailygirl
Thomas Spear great observation. Yes, Quickboy pretty general but very interesting, especially for us running a business. Not sure what I like better the stats or the comments. lol.
01.12.2013
Stefan Sivad
Hi John,
Good stuff. I’m trying to find out the revenue per user for Gmail, Yahoo Mail, AOL mail, etc. Can you point me in the right direction?
Thanks!
01.31.2013
John MailChimp
Hi Stefan, I might not be understanding your question entirely, but if you’re looking to pull some of this information you’d need to have ecommerce360 integrated with your site and MailChimp to start. The following blog post: http://eepurl.com/uPLgX gives a really nice overview of how ecommerce360 can work, what information it tracks, and how you can pull that data. This article: http://eepurl.com/pbSev shows the plugins that are available for different ecommerce platforms and if one isn’t available you can always code one using the API.
02.01.2013
Andy Francis e-style
We run tonnes of analysis mostly for luxury e-commerce clients and would agree that Hotmail users spend more, surely this has to be a demographic thing but would like some geographical stats thrown in too.
02.19.2013
Thương Hoàng Thị
While this thought mightn’t apply to AOL, I wonder how many people (like me) have a throw away email that they use for purchases? I use Gmail for ‘real’ email and a Hotmail address (ok addresses) for purchases and other emails that I likely don’t want and won’t read
03.07.2013
Alain
When aged 15, my grand daughter told me that going to GMAIL was not an option for her, because when young people ask each other for their email address they just give the first part of it, being understood that the domain was Hotmail.
Is this generalized? I do not know, but a scientific analysis of the above hypothesis is in order.
10.29.2013