E-Mail Marketing to Reach $2 Billion by 2014
According to a recent forecast made by Forrester Research, e-mail marketing spending in the U.S. will reach $2 billion by 2014, reflecting a compound annual growth rate (CAGR) of nearly 11 percent from $1.2 billion in 2009.
The factors that are expected to drive this increase include lower CPMs (cost per thousands), higher returns on investment and the growing use of social e-mail accounts by consumers.
The report also expects consumers to receive more than 9,000 e-mail marketing messages annually by 2014.
This doesn’t mean that many of them will get into consumers’ actual inboxes, which could be a costly drawback.
By 2014, “direct marketers will waste $144 million on e-mails that never reach their primary target,” according to David Daniels, vice president and principal analyst at Forrester Research.
This will be due to “inadequate list hygiene and mailing practices, as well as overzealous ISPs that lump good messages in with bad ones,” according to the report.
Marketers can work against this wasted spending by “adopting sender- and message-level authentication as well as reputation services to thwart the imperfect spam-protection heuristics that drive false positives.”
“Successful direct marketing pros will alter their tactics to overcome inbox clutter and increase relevancy,” he added.
Retention e-mail, defined as e-mail that recipients have voluntarily chosen to receive, is expected to continue to replace paper-based correspondence and will account for more than one-third of all marketing messages that reach consumers’ inboxes by 2014, according to Forrester Research. These e-mails will account for three-quarters of spending by e-mail marketers.
More marketers will choose to use e-mail service providers, driven by the “growing complexity associated with data integration and new tactics to increase relevancy,” according to a press release by the company.
Also, spending on ad-sponsored or ad-supported newsletters will double during the next five years, as traditional print-based publishers continue to see declining circulation numbers and advertising revenue.
Forrester also expects the number of active e-mail users (those who log into one or more e-mail account at least once a month) will grow to 153 million in 2014, from 145 million this year.
Spending on transactional e-mail messages will grow at a healthy 9.2 percent CAGR.
Sources:</strong
http://directmag.com/0615-e-mail-spending-forrester/
http://www.marketingpilgrim.com/2009/06/dont-waste-money-on-email-marketing.html
http://www.webpronews.com/topnews/2009/06/15/email-marketing-is-going-to-keep-growing
