BUSINESS ON THE WEB: E-mail Still Rules the Roost

Do you wake up each morning to find your mailbox full–mostly
with offers, newsletters you’ve subscribed to, e-mail ads and more? Clearly,
you’re not alone. There’s a flood of e-mail across the planet, and it’s
the cheapest way for businesses to communicate.

Combined expenditure on e-mail marketing products, services
and e-mail advertising will increase from $1 billion at year-end 2000 to $4.6
billion by 2003, an increase of 360%, according to a new report by eMarketer.
The "E-mail marketing report" identifies e-mail as the current
dominant Internet application, used more frequently than the World Wide Web.

Though the report is US-focused, the data is of close
interest to business users of Internet in India and elsewhere in the world as
the Internet itself strongly remains US-based. Dataquest estimates that 94% of
e-mail transacted (sent or received) by Indian users travels through a US
server, just as over 95% of Indian Web access (by page views) is from US-based

The report projects that the volume of permission-based
commercial e-mail messages volume will reach 64 billion by year-end 2000,
accounting for 12% of total US e-mail. Americans currently receive an average of
13 permission e-mail messages per week, and will have received an average total
of 664 by year-end 2000. By 2003, the number of permission e-mails received per
week will rise to 31, including those from companies or Web sites with whom they
have relationships, opt-in lists, sponsored newsletters and discussion groups.

"Currently, the average e-mail user receives more than
twice as many e-mail messages as he or she sends out," according to
Geoffrey Ramsey, statsmaster eMarketer. "This is a result of the rapid
adoption of permission-based e-mail marketing and the wide transmission of
opt-in e-mail lists."

The report finds that 61% of medium to large-sized companies
in the US are currently implementing e-mail marketing into their business
strategies to market to prospects and customers. Among direct marketers, 62%
presently have e-mail marketing capability, and an additional 23% said they are
considering implementing e-mail marketing by year-end 2000.

E-mail Marketing

E-mail Advertising1794969271,5582,199
Other E-mail Marketing Product/Service2425891,1481,7072,359
Total E-mail Marketing4221,0842,0743,2654,558
Source: eMarketer, 2000

eMarketer’s 160-page eMail Marketing Report aggregates research data from
Forrester Research, Cyber Dialogue, ActivMedia Research, IMT Strategies, Gartner
Group, Jupiter Communications and Arthur Anderson. DQ


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