E-marketing set for major revenue hike

The UK e-mail marketing industry’s revenues will rise by 25 per cent in 2005 to hit &£148m, according to research by E-consultancy.

But the amount spent by marketers on e-mail marketing is likely to be far higher than this, as the study only includes revenues for e-mail solutions providers – it does not cover money spent in house as part of a client company’s marketing budget.

E-consultancy says that the e-mail solutions industry has consolidated significantly in recent months, as the market has become very crowded, and adds that a further wave of mergers and acquisitions is likely, particularly as US providers move into the UK and Europe.

There has been some pressure on prices in the industry, a result of the commoditisation of basic e-mail services such as delivery, and some companies have struggled to make a profit in spite of overall market growth, according to the study. As a result, many of the leading players are focusing on value-added services in order to increase revenues and differentiate themselves from the competition.

Companies have reported a positive start to 2005, with strong spending from arange of different industries. Increasingly, marketers are considering e-mail as a solution that can add significant value, rather than being the cheapest option.Industries such as media and publishing; e-commerce; retail; travel and leisure; and financial services have major budgets for e-mail marketing.

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