Study: E-mail marketing proves irresistible

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By David Legard

(IDG) -- E-mail marketing campaigns are faster, cheaper and more effective than direct mail campaigns and will ultimately supersede them, according to a study from market research company Gartner Inc.

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The most effective form of e-mail marketing is permission-based, which gets a reader response of between 6 percent and 8 percent, Gartner reported Tuesday. Non permission-based e-mail marketing, commonly known as spam, receives a response rate of 1 percent, about the same as direct postal mail campaigns, Gartner said.

But e-mail marketing campaigns can be put together in seven to 10 business days, compared with four to six weeks to complete a direct mail campaigns. Replies arrive in three days compared to an average of three to six weeks for a postal mail campaign.

E-mail campaigns are 100 times cheaper, with the cost ranging from US$5 to $7 per 1,000 addresses while direct mail costs range from $500 to $700 per 1,000 addresses, Gartner said.

E-mail will account for 50 percent of mail received by U.S. households by 2005, up from 35 percent today, threatening the $196.8 billion direct mail market, Gartner said.