Arnaud Le Lann is concerned about which works best.

Some weeks ago, I was in a meeting with a B2B mailer who operates in many European countries, and we were talking about the next email strategies to adopt.

During this meeting, my contact told me how he had done some data tests using a database available on a CD from an online store – and which are sold totally legally.

Of course, the results of these tests weren’t as good as the ones conducted using standard response ‘legal’ lists, but they weren’t that bad, either! And, by adding costs figures versus response and ROI, it was absolutely clear that these black market lists were really profitable, given the fact that their cost is close to zero.

I asked my contact why he had decided to use such databases, and wasn’t he aware of the legal situation in his different European markets. 

His answers to these two questions were linked: yes, he was absolutely aware of the legal situation (and of the penalty risks, too) and, yes, because of these legal situations, he had decided to test this dubious data, because local laws in some countries had driven the market to a blocked situation for lists: no new data sources available, few possibilities and mostly too expensive ones.

So, calculations were quickly added up: cost of ‘legal’ lists were in any case lower than the amount of a possible fine. The risk of being sued was worth it, and was then proven to be.

Parallel market

By looking into this sort of parallel lists market, one can find dozens of suppliers, all around the globe, selling more or less the same data source, under different names, and at different costs (rarely exceeding  €1,000 in total, but for several million records). And this seems to be a flourishing activity, as some new ones are appearing here and there all the time.

Actually, stricter rules are resulting in more grey data being sold, and used, meaning less control. Laws are aimed at protecting individuals but, as data from unknown origins is made more and more available (totally legally) and very cheaply, some advertisers use this underground channel, because it seems to be the more logical way for them to reach profitability. 

Furthermore, there are lists available on peer-to-peer websites, which can be downloaded for free, almost instantly.

The situation for the data industry is becoming increasingly similar to the one faced by the musical and video industry some years ago: data has a copyright, the same as music, but technology and the Internet make it ever easier to find, use and store it.

Restrictive laws are apparently not the solution to fight this and to protect our businesses we certainly need more and more innovation, ideas and content. 

But we know that even by innovating constantly, this is not enough to stay ahead. 

So, what’s the solution? Would we have to create a sort of iTunes for data, where all available lists worldwide would be included and directly picked and loaded by users? 

Consider this idea carefully and think about our business model in say, 20 years . . . and you might realise this doesn’t sound as strange as you first thought . . . 

Arnaud Le Lann is managing director of Euroleads, the French partner within the Lists4Europe network. Email: alelann@euroleads.fr