Commercial e-mail is on the rise and direct mail is on the decline, said a new study by GartnerG2.
E-mail advertising revenue is projected to reach $1.26 billion in 2002. That’s up from $948 million in 2001. By 2005, revenue is forecast to total $1.5 billion.
Direct mail, however, has reached its peak and will account for less than 50% of mail received by households by 2005. That’s down from 65% in 2001, according to the study.
“Direct mail has reached its peak,” said Denise Garcia, research director for GartnerG2, in a statement. “As e-mail use and trust increases, consumers will become more comfortable accepting advertisements through their computer.”
Two reasons mentioned for e-mail’s increasing supremacy? It is faster and cheaper.
E-mail costs range from $5 to $7 per thousand, while direct mail costs range from $500 to $700 per thousand, according to the study. Response time to a direct mail campaign takes an average of three to six weeks, versus three days for e-mail. Response rates to both channels hover at around 1%, according to GartnerG2.
Stamford, CT-based GartnerG2 is a research service from consulting firm Gartner Inc.
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