Email Marketing On the Rise, Direct Mail in Steep Decline
According to a study released yesterday by media research and consulting firm Borrell Associates, Direct mail spending will drop by as much as 39% during the next five years from $49.7 billion in 2008 to $29.8 billion in 2013.
Email is the #1 Choice
The Borell Associates study predicts email will continue to grow in importance as the preferred online advertising outlet. "e-mail advertising quietly moved to the No. 1 online ad category spot, surpassing all other forms of interactive advertising. Advertisers spent $12.1 billion last year on e-mail marketing, more than they spent on display/banner advertising or search advertising. We're predicting that e-mail will continue to distance itself from other online advertising formats over the next five years, growing to $15.7 billion and remaining the preferred channel among many marketers."
Local Email Advertising Will Lead The Growth
So where is the growth going to come from? Borell believes that "Most of the growth in e-mail marketing will be local. We're expecting local e-mail advertising to grow from $848 million in 2008, to $2 billion in 2013, as more small businesses abandon direct mail couponing and promotional offers and turn to a more measurable and less costly medium, e-mail.
Borell cautions "Those trying to latch onto this trend aren't likely to strike instant gold. Managing large e-mail marketing campaigns require database marketing expertise, a savvy sales force, adequate e-mail management software, familiarity with the rules and regulations and a lot of patience."
So just how exactly can a small, SOHO, or geographically targeted (local) business begin to use email to advertise to Consumers effectively?
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