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E-mail
usage high, marketing spending low
Computers & BusinessWorld News
Carlos Torres
Miami
Florida, USA
More than one-half of US e-mail marketing
executives get 20% or less of their firm's e-mail
budgets, according to StrongMail Systems and
JupiterResearch’s “Maturation of Email:
Controlling Messaging Chaos Through
Centralization” report.
E-mail marketers appear to get shortchanged when
it comes to e-mail budgets, especially
considering the medium's wide usage.
JupiterResearch found more than one-quarter of
the e-mail that consumers received in their
inboxes was marketing. But there are reasons why
e-mail spending growth will stay moderate in the
short term.
"The key reason is cost," said David
Hallerman, eMarketer senior analyst.
"Because e-mail is a low-cost medium, even
relatively large increases in the number of
commercial e-mails will not be reflected in large
spending increases."
E-mail marketing spending comprises payments to
e-mail service providers, list rental and the
costs of in-house e-mail. E-mail advertising, on
the other hand, is defined as ads running in
third-party e-mail newsletters.
eMarketer predicts that US e-mail marketing
spending will reach $1.65 billion in 2011, up
from nearly $1.5 billion in 2007. In essence, the
annual growth rate will slow from 5.6% in 2006 to
1.5% in 2011.
Moderate e-mail marketing spending growth belies
actual usage of the tactic. More than seven in 10
marketers surveyed by Datran Media in December
2006 planned to use more e-mail in 2007 than
2006, while only 4.3% said they would reduce
their e-mail marketing.
Moreover, nearly every interactive marketer uses
e-mail, according to Forrester Research.
E-mail marketers may not need more than one-fifth
of a company's e-mail budget to get the job done.
More than one-half of US marketers in a March
2007 MarketingSherpa study said that e-mail
marketing produced the best ROI of any marketing
tactic. Only search engine optimization was more
highly regarded for ROI. |
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