E-mail Marketing Grows, Fueled by M&A Activity

E-mail marketing expenditures are expected to grow 41% through 2005, reaching $3.5 billion. E-mail company mergers and acquisitions will be key to e-mail growth, said a new report by the Winterberry Group, New York.

Today, permission-based commercial e-mail, which includes e-mail that is used both for prospecting and for customer-relationship management, accounts for 10% of 300 billion e-mail messages sent in the U.S. By 2005, e-mail will account for nearly 25%.

More than 200 companies are competing to provide e-mail services. Consolidation is underway, but slowing somewhat, said the report. There were some 15 major new rounds of financing, mergers and/or acquisitions through September 2001. There were 30 such deals in 2000.