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EMail on the Marketing Fast-Track

October 19, 2000

An Internet research organization has projected the use of e-mail for marketing and advertising to grow at the rate of $1 billion annually--to more than $4.5 billion by 2003. As if e-mail users didn't notice it already on their desktops, e-mail sales messages--solicited or not--are on a high-growth, fast track.

"Combined expenditures of e-mail marketing products, services and email advertising will increase 360% by 2003, says eMarketer, Inc.

The company released it eMail Marketing Report Wednesday, and identifies e-mail "as the current dominant internet application, used more frequently than the World Wide Web."

The company also estimates that permission-based commercial e-mail message volume will reach 64 billion by year-end 2000, accounting for 12 percent of total U.S. e-mail.

"Americans currently receive an average of 12.8 permission e-mail messages per week, and will have received an average total of 664 by year-end 2000. By 2003, the number of permission e-mails received per week will rise to 31, including those from companies/websites with whom they have relationships, opt-in lists, sponsored newsletters and discussion groups" said the researchers.

eMarketer's Geoffrey Ramsey said today's average e-mail users receive more than twice the number than they send. "This is a result of the rapid adoption of permission-based e-mail marketing and the wide transmission of opt-in e-mail lists," he said.

The report also found that 61 percent of medium to large-sized companies in the U.S. are currently implementing e-mail marketing into their business strategies to market towards prospects and/or customers. Among direct marketers, 62 percent presently have e-mail marketing capability, and an additional 23 percent said they are considering implementing e-mail marketing by the end of this year.

Other key findings of the eMail Marketing Report:

  • By year-end 2000, there will be 96.6 million e-mail users aged 14 and older
  • 43.8 percent of the total population of adults and teens.
  • U.S. companies are projected to spend $496 million on e-mail advertising by year-end 2000, a 177 percent increase from 1999.
  • Revenues from retention e-mail are predicted to grow to $2.4 billion by 2003, a 300 percent increase from year-end 2000.
  • Permission-based commercial e-mail message volume will increase 60% by year-end 2000 to 64 billion, accounting for 12 percent of total volume.
  • Spam (or unsolicited e-mail) accounts for 10 percent of total e-mail volume in the U.S.

eMarketer's eMail Marketing Report aggregated research data from leading firms such as Forrester Research, Cyber Dialogue, ActivMedia Research, IMT Strategies, Gartner Group, Jupiter Communications, Arthur Anderson, among others.

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