Leading business ASP (Application Solution Provider), Candor Technologies has stated that the latest eMarketer`s E-Mail Marketing Report shows promise for its newly launched 1-to-1 E-Communications hosted application service, E-ddition.com (www.e-ddition.com).
The report forecasts that $2.1 billion will be spent on e-mail marketing by the end of this year. This is a 110% increase from the $1.1 billion spent on e-mail marketing in 2000.
One of the reasons for the increase is that e-mail marketing seems to produce better quantifiable results than banner ads. eMarketer (www.emarketer.com) cites an average 3.2% click-through rate for opt-in e-mail versus only 0.3% for banner ads.
E-mail marketing also has proven itself cheaper than traditional direct marketing methods, such as direct snail mail and telemarketing. The average cost per e-mail message in the US is less than $.01, compared to between $1 and $3 for telemarketing and $.75 to $2.00 for direct mail.
Candor`s managing director, Wido Schnabel says, "E-Mail is more target-effective, customisable and flexible than any other medium. It is for this reason that this particular segment is experiencing rapid adoption and escalated growth."
Jonathan Jackson, a senior analyst at eMarketer says, "E-mail direct marketing, when done correctly, can overcome the limitations of traditional direct marketing by offering limitless targeting ability at pennies per e-mail and allowing marketers to have a one-to-one conversation with each of their customers."
The low costs have also made e-mail marketing more attractive to small businesses. According to the Kelsey Group (www.kelseygroup.com), annual spending by US small businesses on localised e-mail marketing will exceed $2.2 billion by 2005. The firm`s research also found that 42% of small businesses will use e-mail for some form of marketing by 2005, with promotional coupons as the leading entry-level method.
Schnabel concludes, "E-ddition.com provides the automated update of press releases/newsletters (web publishing) on a company`s Web site, an e-newsletter and a full e-mail subscription (opt-in/opt-out) service using a single, Web-based solution. We believe that the report mirrors our strategic forecast of not only gaining a significant market share locally but globally as well."
Also among the findings of eMarketer`s report:
* E-mail users outnumber Web users by 10% - 96.6 million to 87.9 million
* More than 1 billion e-mail messages are sent daily in the US
* 80% of e-mail marketing messages are responded to within 48 hours, compared to 6 to 8 weeks for traditional direct marketing methods
* 85% of responses to an e-mail offer are received within the first 48 hours
Share
Editorial contacts