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.
The most effective form of e-mail marketing is permission-based, which gets a reader response of between 6 and 8 per cent, Gartner reported on Tuesday. Non-permission-based e-mail marketing, commonly known as spam, receives a response rate of 1 per cent, about the same as direct postal mail campaigns, Gartner said.
But e-mail marketing campaigns can be put together in seven to ten business days, compared with four to six weeks to complete a direct mail campaign. 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 $US5 to $7 per 1000 addresses, while direct mail costs range from $500 to $700 per 1000 addresses, Gartner said.
E-mail will account for 50 per cent of mail received by US households by 2005, up from 35 per cent today, threatening the $US196.8 billion direct mail market, Gartner said.