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Email marketing in US profitable despite spam: study

Indiantelevision.com Team

(11 October 2004 2:00 pm)

MUMBAI: Despite the crippling nature of spam, and the sometimes overwhelming impact of escalating e-mail volume, e-mail marketing in the US remains highly profitable, most notably when used for customer retention.

Research and Markets has released an E-Mail
Marketing report for this year. The study has noted that in the US 88 per cent of adult Internet users have personal e-mail accounts. Further, 46 per cent of them have e-mail access at work. Added together,
the report estimates that 147 million people across the US use e-mail almost every day.

Research from Quris further indicates that loyal e-mail subscribers -- that is, the 40 per cent of customers "who would go out of their way to patronise a company whose permission e-mail programmes they like" -- make more purchases and spend more online than those customers who do not feel the same loyalty.

The report notes that while building a robust permission-based list is the key first step, the
quality of marketing e-mail contents might be the most important signifier as to whether or not the messages produce profits.

DoubleClick research released earlier this year had focussed on the average e-mail revenues for retail and catalog companies -- two of the biggest players in e-mail marketing. In this case, while revenues per
e-mail peaked at $0.30 during Q2 2003, they remained relatively stable at$0.26 per e-mail during the second half of 2003.

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