E-mail Marketing Spending to Jump to $6.1 Billion by 2008: Report

Spending on e-mail marketing in the United States will rise from $2.1 billion in 2003 to $6.1 billion in 2008, according to a report from JupiterResearch.

Three critical factors will drive the market, according to the report: the dramatic cost reductions of e-mail marketing, the growth of sponsored and acquisition e-mail campaigns and the ever-increasing challenges presented by spam.

Consumer retention campaigns will continue to account for the lion’s share of non-spam e-mail marketing spending in the near term, according to the report, which noted that marketers will need to closely manage their campaigns to get the full benefits of online direct marketing.

“Smart marketers have to manage their lists, test mailings against control groups and adopt behavioral targeting to get the biggest payoff,” said David Daniels, a research director at JupiterResearch, in a statement.

Acquisition e-mail marketing spending in the U.S. will climb steadily from $720 million in 2003 to $1.8 billion in 2008.

According to the report, over the course of 2003, the average U.S. online consumer received 3,920 unwanted commercial e-mail messages. This number will grow to reach 6,395 by the end of 2008.

But, the volume of messages sent by legitimate marketers, rather than spam, is the largest barrier to reaching consumers, noted Jupiter. Sponsored e-mail messages in the U.S. will grow at nearly twice the compound annual rate (19%) of total message volume (11%) between 2003 and 2008.