Email Volume Continues To Grow; Direct Marketers Cite Cost-Effectiveness
CAMBRIDGE, Mass. – Spending on email marketing in the US will balloon to $2 billion by 2014 — a nearly 11 percent compound annual growth rate — according to a new forecast by Forrester Research Inc. (Nasdaq: FORR). Falling CPMs (cost per thousands), a high return on investment, and growing consumer use of social email accounts will fuel the use of email by Direct Marketing professionals. In five years, consumers will be deluged with more than 9,000 email marketing messages annually. The top-line, five-year forecast is available to Forrester RoleView™ clients; subscribers to Forrester’s ForecastView receive more detailed forecast data.
“By 2014 direct marketers will waste $144 million on emails that never reach their primary target,” said Forrester Research Vice President and Principal Analyst David Daniels. “Successful Direct Marketing pros will alter their tactics to overcome inbox clutter and increase relevancy.”
The report notes some of the growth areas shaping the future of email marketing:
* Retention email — email that recipients have blessed with their permission — will continue to replace paper communications and will make up the largest share of marketing messages. Retention emails will account for more than a one-third of all marketing messages in consumers’ inboxes by 2014, representing increased competition for marketers.
* While the bulk of the market will continue to deploy email marketing on a self-service basis, the growing complexity associated with data integration and new tactics to increase relevancy will drive healthy growth in use of email service providers.
* Spending on ad-sponsored or ad-supported newsletters will double over the next five years as traditional print publishers face falling circulation and ad revenue.
“The use of email in social networks will be one of the biggest challenges for direct marketers,” said Daniels. “Over the next five years, marketers must bridge the gap between social and traditional inboxes with social sharing tools.”
The Forrester report “US Email Marketing Forecast 2009 To 2014” is currently available to Forrester clients and can be purchased directly at http://www.forrester.com/go?docid=53620.
About ForecastView
ForecastView is a syndicated subscription service that provides access to up to 40 forecasts across North America and Western Europe. Clients receive detailed forecast data and important market metrics that they will not get through research reports alone. In addition, they also have unlimited Inquiries with a forecast analyst. Forrester analysts employ a unique methodology that includes deep, consumer demand-side data along with supply-side metrics from proprietary company and industry sources. ForecastView forecasts provide insights into the development of online, mobile, and emerging technology markets. More information about ForecastView is available at http://www.forrester.com/consumerdata/forecastview.
About Forrester Research
Forrester Research, Inc. (Nasdaq: FORR) is an independent research company that provides pragmatic and forward-thinking advice to global leaders in business and technology. Forrester works with professionals in 19 key roles at major companies providing proprietary research, consumer insight, consulting, events, and peer-to-peer executive programs. For more than 25 years, Forrester has been making IT, marketing, and technology industry leaders successful every day. For more information, visit www.forrester.com.
