Email Marketing Shows Strong Growth as Marketers Focus on Customer Retention

UK email marketing to grow by 15% in 2009, according to Econsultancy.

London, United Kingdom, September 26, 2009 --( The UK market for email marketing platforms and services will grow by an estimated 15% in 2009 to a value of £292 million, according to research published this week by Econsultancy.

The market is continuing to flourish as companies focus on areas of marketing which deliver proven return on investment, according to Econsultancy's Email Marketing Platforms Buyer's Guide 2009.

The estimate is based on a revised valuation for 2008. Before the full impact of the recession had been felt, Econsultancy estimated that the market would grow by 24% to a value of £274 million by the end of 2008.

Although email marketing has proved relatively resilient to cuts in marketing budgets, Econsultancy said that the market actually grew by 15% in 2008 to a value of £254 million, and will show the same level of growth (15%) this year.

Econsultancy's Research Director, Linus Gregoriadis, said: "As an industry, email marketing continues to flourish because it is inherently accountable and more measurable than other areas of marketing, providing a high return on investment at a relatively low cost. Many companies are diverting budget from direct mail to email marketing."

According to the Econsultancy / Adestra Email Marketing Industry Census 2009, on average, companies are spending 14% of their digital marketing budgets on email marketing.

Apart from basic broadcast of email, services offered by email service providers and agencies include: measurement and analytics, personalisation, segmentation, automated campaigns, campaign optimisation, email data provision, strategy and planning, design and copywriting, dynamic content solutions and behavioural response marketing.

Econsultancy's valuation includes revenue earned by email service providers (ESPs), money spent on agency services and the cost of internal staff resources relating specifically to email.

Gregoriadis added: "During the recession, the focus has been very much on building relationships and selling to existing and prospective customers. Aside from just basic broadcast of email, companies are continuing to invest in additional email services, including measurement and analytics, segmentation and personalisation.

"However, our research has also found that the lack of a strategic approach is holding back some marketers from optimising their email communication and preventing them from getting the best return on their investment."

Key market trends in 2009
* Email service providers reap benefits of focus on channels driving return on investment
* Segmentation and behavioural targeting become established as best practice
* Marketers attempt to connect email with social media
* Lack of strategy holds back email marketers

About this report
Their 2009 Email Marketing Platforms Buyer's Guide assesses the UK marketplace for email services from the perspective of the buyer.
The report contains an overview of market trends and profiles of those companies offering email marketing platforms and email-related services.
Which vendors / email platforms are featured in the buyer's guide?
Adestra, Communicator Corp, CommuniGator, Database Group, dotMailer, eCircle, e-Dialog, Emailcenter, Emailvision, Epsilon, ExactTarget, Experian CheetahMail, Lyris, MailPerformance, Mailtrack, Newsweaver, Pure360, RedEye, Responsys, Shift Click, Silverpop, smartFOCUS, SpinnakerPro, StrongMail.

Report URL
A free market research report is available to journalists and bloggers. Please email for details.

Media contacts:
Linus Gregoriadis, Research Director, Econsultancy
(e: linus AT t: 0207 269 1465)
Aliya Zaidi, Senior Research Analyst, Econsultancy
(e: aliya.zaidi AT t: 0207 269 1466)

About Econsultancy
Econsultancy is the leading source of independent advice and insight on digital marketing and e-commerce.
Our reports, events, online resources and training programmes help a community of over 80,000 registered marketers make better decisions, build business cases, find the best suppliers, look smart in meetings and accelerate their careers.
Econsultancy is an award-winning online publisher of reports covering best practice, user experience benchmarking, market data, trends and innovation, and supplier selection aimed at internet professionals that want practical advice on all aspects of e-business.

Linus Gregoriadis
020 7681 4051