High School Confidential

How would you like to lose your single largest data source in one fell swoop?

That’s what student list marketers will face June 1 when the Shelby Amendment, which overrides provisions in the Driver’s Privacy Protection Act of 1994, takes effect. The measure requires that states obtain written permission from licensed drivers before making personal information available to third-party marketers.

All compilers will be hurt by the provision, but none more than American Student List (ASL) and Student Marketing Group Inc., which now derive 50% of their student names from state motor vehicle department files.

These firms use data from about 22 states – the others do not make it available – to compile students’ names, addresses and ages. Age is a critical factor when compiling student lists, especially in determining grade levels.

The compilers say they hold little hope that drivers will rush to sign up. “The consensus is that next to no people will opt in, and that the states will shut down the list rental business,” says Jan Stumacher, president of Student Marketing Group in Lynbrook, NY.

Paying the Price

The good news is that these firms have been preparing for June 1.

“We’re well on our way to replacing the DMV data,” says Don Damore, president of American Student List in Mineola, NY.

The replacement sources include questionnaires, student directories and school club rosters. In addition, the compilers will purchase data from outside sources, work with partners and gather information via the Internet.

The bad news is that this data will cost a lot more to acquire: roughly $2 to $3 per name compared with a high of 20 cents per name for the DMV data. And the true test for compilers will come during the next several years as the names culled from DMV sources become outdated, Stumacher says.

ASL’s list of college-bound high school students includes 3 million juniors and seniors who have all indicated an interest in continuing their education. To ensure accuracy, ASL combines age with regional variables, so it can determine cutoff dates for attending specific grade levels.

The firm relies on self-reported and overlay information to document a student’s desire to attend college, Damore says.

One unanticipated benefit of the new data sources has been the availability of lifestyle data not contained in DMV files. Mailers can now choose selects like sports affinity, language spoken, computer in the household, religious affiliation and career interest.

Just as some data sources are now limited, so too are the uses to which the data are put. Reacting to growing criticism from the privacy lobby, many marketers have started phasing out the use of a child’s name when marketing.

Children’s Privacy Act

In addition, marketers now have to cope with the Children’s Online Privacy Protection Act, which took effect April 21. The law requires that Web sites obtain “verifiable” parental consent before collecting personal data from children under age 13. The measure was created to protect children from disclosing personal information that could make them the targets of improper conduct.

As a result of the act, America Online, for example, is now prohibiting children under 13 from creating personal profiles in its membership directory. In addition, existing profiles of children under 13 were removed from the directory April 21.

Experian, the Orange, CA-based information services company, no longer offers the names of children under 18. And Harte-Hanks Direct Marketing in New York has a policy of not mailing to anyone in that age range, says Harriet Heyman, vice president and general manager of lists and data for Harte-Hanks.

Others Following Suit

Heyman believes that most compilers and list managers have followed suit with similar restrictions, although age limits vary from 12 to 18. For example, ASL just began phasing in a policy that all mail sent by clients to children under 12 must be addressed to the parent, Damore says. (At press time, Student Marketing had not enacted such a policy.)

In addition, copy has become less specific, even when sent to adults. For example, the fact that a child is in kindergarten or is 5 years old is used as a selection tool, but not promoted in the copy. “We’ve all gotten to be generalists,” Heyman says. “People have a heightened concern about security and how much is known about them. Privacy advocates’ voices have grown so loud that we’re very sensitive that we’re not fanning the flames.”

24/7 Media Inc. of New York, which markets a file of 20 million opt-in e-mail addresses, has a policy not to market directly to children under age 16, says Michael Rowsom, senior vice president and general manager. “The best way to reach kids is through their parents in this kind of direct response medium,” Rowsom says. “The parents are the people making the transaction and consumption decisions and we feel that’s the better way to market to that community.”

As the interest in student e-mail lists continues to grow, however, so does the volume of names. The college universe now consists of 14 million students, 68% of whom own personal computers, compared with 61% last year, according to Student Monitor, a research firm for the college student market in Ridgewood, NJ.

Meanwhile, the traditional student list marketers also have e-mail lists. Student Marketing is not offering its file, but it will make it available if a mailer requests it. Both firms face stiff competition from firms that specialize in e-mail lists.

Myriad E-Mail Lists

For example, 24/7 Media provides a number of student e-mail files, Rowsom says. Its most popular, FastWeb, identifies 2.4 million high school and college students as well as parents who have tapped FastWeb.com for its information on scholarship and financial aid programs. The file rents at $200 to $225 per 1,000 names and offers selects such as school year, hobbies, gender and career objective. On the market for less than a year, the file has achieved triple-digit revenue growth, Rowsom says.

In addition to offering managed files, 24/7 Media compiles student lists using self-reported data from online partners. And it has created a separate file that sorts students by university domain.

NetCreations Inc. of New York has compiled 29 files of college students, with 163,000 e-mail addresses, by partnering with more than 250 Web sites that collect information on students. For example, the site FunnyGreetings.com has compiled the names of about 8,000 college students, and MailBits.com offers almost 90,000, says Michael Szerencsy, business development manager at NetCreations.

$90 Billion on the Line

With the spending power of college students estimated at $90 billion, it is no mystery why marketers are blanketing students with ads.

Take Gillette Co. For the past 10 years ASL has supplied Gillette with the names of 18-year-old males, who are sent a “Happy Birthday” gift boxthat includes a full-size razor, a can of shaving gel, a dollar-off coupon for cartridges and a welcome letter.

Jeff Reilly, Gillette’s product manager for male shaving in North America, says the company sends the package to 1.3 million young men each year – or an estimated 75% of the universe. Reilly adds that the program pays back after one year and that the net conversion rate of 40% is the highest of any of the company’s sampling programs. “Once we get the razor into peoples’ hands, the program is incredibly successful,” he says.

The ASL file also has been tapped for a very different reason – one that should impress even the toughest privacy advocates.

For the past 10 years, ASL has worked closely with the National Center for Missing and Exploited Children in Alexandria, VA, helping to find more than 35 children. Most recently it helped find two sisters abducted in Oklahoma in 1987 by their non-custodial mother, says Damore. At the time of their abduction, the girls were 3 and 5. Just last month they were located in Kansas and reunited with their father after 13 years.