Online Advertising

e-Mail marketing

Opt-in e-mail advertising | Permission marketing

E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every e-mail sent to a potential or current customer could be considered e-mail marketing. However, the term is usually used to refer to:

• Sending e-mails with the purpose of enhancing the relationship of a merchant with its current or old customers and to encourage customer loyalty and repeat business.
• Sending e-mails with the purpose of acquiring new customers or convincing old customers to buy something immediately.
• Adding advertisements in e-mails sent by other companies to their customers.

Researchers estimate that as of 2004 the E-mail Marketing industry's revenues has surpassed the $1 billion/yr mark.

The Good

E-mail marketing is popular with companies because:

• It is extremely cheap. Compared to direct mailing or printed newsletters the costs are negligible. The advertiser does not need to pay for production, paper, printing or postage.
• It is instant, as opposed to a mailed advertisement, an e-mail arrives in a few seconds or minutes.
• It lets the advertiser "push" the message to its audience, as opposed to a website that waits for customers to come in.
• It is easy to track. An advertiser can track bounce-backs, positive or negative responses, click-throughs, rise in sales.
• Advertisers can reach substantial numbers of e-mail subscribers who have opted in (consented) to receive e-mail communications on subjects of interest to them
• It has been proven successful when well done.
• When most people switch on their computer the first thing they do is check their e-mail.
• Specific types of interaction with messages can trigger other messages to be automatically delivered.

The Bad

Many companies use e-mail marketing to communicate with existing customers, but many other companies send unsolicited commercial e-mail, also known as spam.

Illicit e-mail marketing antedates legitimate e-mail marketing, since on the early Internet it was not permitted to use the medium for commercial purposes. As a result, marketers attempting to establish themselves as legitimate businesses in e-mail marketing have had an uphill battle, hampered also by criminal spam operations billing themselves as legitimate.

It is frequently difficult for observers to distinguish between legitimate and spam e-mail marketing. First off, spammers attempt to represent themselves as legitimate operators, obfuscating the issue. Second, direct-marketing political groups such as the U.S. Direct Marketing Association (DMA) have pressured legislatures to legalize activities which many Internet operators consider to be spamming, such as the sending of "opt-out" unsolicited commercial e-mail. Third, the sheer volume of spam e-mail has led some users to mistake legitimate commercial e-mail (for instance, a mailing list to which the user subscribed) for spam