The use of e-mail as a marketing tool has become ubiquitous and widespread almost a dozen years after it was first introduced. Its future should be bright.
eMarketer estimates that e-mail advertising spending will grow from $338 million in 2006 to $616 million in 2011 — a six-year increase of 82%. Comparatively, total Internet ad spending will grow twice as fast during the same period. So why is the e-mail ad growth rate lagging?
"E-mail advertising spending only represents a part of e-mail marketing expenditures," says David Hallerman, eMarketer senior analyst and author of the new report, E-Mail Marketing: Getting Through to Customers.
As defined by the Interactive Advertising Bureau (IAB), e-mail advertising consists of "banner ads, links or advertiser sponsorships that appear in e-mail newsletters, e-mail marketing campaigns and other commercial e-mail communications."
In fact, eMarketer estimates show a slightly declining share for e-mail advertising in the booming Internet ad spending market, dropping from 1.9% share in 2007 down to a 1.4% slice in 2011.
"But even e-mail marketing, a much larger enterprise, will rise from only $1,425 million in 2006 to $1,650 million in 2011," Mr. Hallerman said.
"In that instance," Mr. Hallerman said, "the six-year increase is only 16%."
What is holding the entire e-mail marketing sector back from larger spending growth?
"One key factor is how e-mail is typically perceived and implemented," Mr. Hallerman said. "Most companies typically see e-mail marketing as a low-cost medium."
To get the whole picture of e-mail marketing trends, read the new eMarketer report, E-Mail Marketing: Getting Through to Customers, today.