SPAM IS SHRINKING WHILE EMAIL MARKETING IS GROWING MODESTLY

JupiterResearch: US Email marketing spending will grow from $885 million in 2005 to $1.1 billion by 2010, and the volume of spam messages per consumer will decrease by 13% a year during this same period. , The overall growth of the market will be marked by growth in spending on retention, acquisition and transactional email. Filtering improvements made by Internet service providers are credited with the expected decline in spam. The average active email consumer will see a drop from 3,253 pieces of spam in 2005 to 1,640 pieces of spam in 2010.

ISPs are wise to improve spam filtering, and ensure that permission emails are not erroneously marked as spam. Consumers have a plethora of providers to choose from and will stray from those who do not effectively filter messages.

Email delivery rates have stabilized at an average of approximately 88% and are expected to surpass 90% over the next few years. By 2010, the cost of incorrectly blocked email will drop to $92 million from a high of $107 million in 2006.

The next five years will see a more organized email marketing arena. Delivery rates will rise because of marketers' efforts to improve list management practices. And the greater control by ISPs over spam will mean a lot less waste. Email Marketing Forecast 2005 to 2010

Publ 20060202