Thursday, 20 August 2009

Retention Email Spending Soars

The staple of online addressable marketing is far from washed-up. According to a recent Forester report, US Email Marketing Forecast 2009 - 2014 by David Daniels, spending on email marketing will more than double over the next 5 years. The growth will not be universal however and the report warns of the persistent waste inherent in the channel, estimating that delivery issues (emails that never actually arrive at their intended destination) will cost marketers in the region of $150MM by 2014.

Several nuggets emerge form the report:

  • The growth of social media will bolster e-mail because people need e-mail accounts to register for these sites
  • The number of active e-mail individuals—defined as people who log into one or more e-mail accounts at least monthly—will grow from 145 million in 2009 to 153 million in 2014
  • (Unsurprisingly) The biggest growth area for e-mail spending will be in transactional messaging. The firm projects transactional messaging to grow at a compound annual rate of 9.2%. Principally driven by marketers' desire to inject marketing offers in these messages
  • Retention email will represent three quarters of the increased spend and acquisition will remain secondary.

A low cost channel + a high value outcome (retention) = smart marketing...

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