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Survey shows e-mail marketing on increase
Thursday, June 27 2002
by Ciaran Buckley


The results of DoubleClick's new Marketing Spending Index survey show that e-mail
newsletters are gathering market share and gaining acceptance among consumers.

The index is a bi-annual survey conducted among marketing executives to track
trends and acceptance of both off-line and on-line marketing tools. The survey
also tracks the usage, spending, and perceived effectiveness and revenue impact
of various marketing tools. 



Fifty percent of respondents to the survey expected 2002 marketing budgets to
increase from 2001 levels, while 27 percent said budgets would stay the same and
23 percent anticipated that they would decline. 



E-mail budgets in particular were expected to increase, with 61 percent of
respondents expecting their e-mail marketing budgets to grow over the next 12
months. They expected a 17 percent increase in e-mail budgets, while on-line
marketing should grow by 9 percent and direct response TV by 18 percent. 



"This is consistent with what we've seen," said Mark Tarbatt, managing
director of Generator, a Dublin-based interactive advertising agency. "We've
seen a significant increase in the amount of revenue we've generated from
e-mail."



E-mail marketing was ranked consistently highly by respondents for achieving all
marketing objectives, including lead generation, information dissemination,
retention, building awareness, generating immediate sales and upselling.



Andrew O'Shaughnessy, managing director of e-mail marketing company Newsweaver,
pointed out that e-mail newsletters conform to the required criteria of
marketers. "They allow marketers to build a relationship with their customers
and ascertain their preferences," he told ElectricNews.net. "It provides
information that businesses can turn into revenues, it allows them to cut costs
and keeps them at the top of their customers' mind."



The growth in e-mail advertising also reflects a growing sophistication among
marketers. "E-mail newsletters are no longer plain text, they include HTML and
richer media. HTML also allows companies to track the people who've read the
newsletter, or even a particular article," said Tarbatt. "Companies are also
becoming more sensitive to spam and are more likely to include opt-in and opt-out
features in their e-mail newsletters."



The DoubleClick survey found that on-line advertising was the third most commonly
used form of advertising, behind print and direct mail, and slightly ahead of TV,
radio and e-mail. Respondents said they used on-line advertising primarily for
building brand awareness and acquiring new leads. It is used to a lesser degree
for driving immediate sales and providing company information.  



The index found that traditional media such as TV, print and radio were expected
to experience a small decrease in relative spending, while telemarketing, direct
mail and catalogue marketing were expected to see the largest relative decline.



The survey was conducted among 190 chief marketing officers, vice presidents of
marketing, advertising managers and brand managers. Respondents all had budgetary
responsibility for a company or brand with gross revenue of more than USD50
million and a total marketing budget during 2001 of more than USD1 million.