E-mail marketing thrives despite social network use

Twitter, Facebook and similar sites open new venues, but quantity of direct messages grows.

By Arlene Satchell
Sun Sentinel
Posted: Sunday, Mar. 14, 2010

Social networking Web sites such as Facebook and Twitter are providing businesses with new ways to market their products to existing and future customers.

But as businesses rush to "friend" and "tweet" their way into consumers' hearts, is e-mail marketing being trumped by social media?

Some industry experts contend that e-mail adoption and use remains strong with businesses and consumers alike.

"E-mail is still the central hub for how people want information to be pushed to them," said Karen Talavera, a digital marketing expert in Lake Worth, Fla.

According to Forrester Research, 90 percent of online Americans currently use e-mail as a mainstream communication channel.

"It's very simple to use and cost-effective," said Jude Diaz of Wealthwise Technologies, a Florida investment advisory firm that has been using Constant Contact's e-mail marketing service. "You see a lot of nice results with minimal efforts."

In November, gym owner Gregory Drew sent a promotional offer to 4,134 women in the Boca Raton, Fla., area. He used a geographically targeted e-mail marketing platform from CityTwist.

The e-mail campaign cost him about $250, but his return on investment was $10,400 in revenue - the value of 26 new memberships.

"It's worked better than any other form of marketing I've used," Drew said. "I've had 10 times the results."



By 2014, consumers are forecast to receive an average of more than 9,000 e-mail marketing messages annually in their primary in-boxes, according to Forrester. Spending on e-mail marketing is also expected to climb to $2 billion that year, up from $1.2 billion in 2009.

To distinguish their messages from spam, e-mail marketers should adhere to standards established by the federal CAN-SPAM Act, which regulates commercial e-mail, Talavera said.

For example, the standards stipulate providing an unsubscribe option and sender information, such as business name and address with each message.

CityTwist has had success in the downturn with its geo-targeted e-mail marketing technology and has had to hire more staff to meet growing demand.

For 5 cents per e-mail, businesses can send e-mails with discounts or special offers to residents in a specific zip code or a targeted radius of their locations using CityTwist's software.

Talavara said e-mail marketing's low cost compared with other forms of direct marketing is helping to drive adoption in the economic downturn.

Starting at $15 a month, a business with a database of 500 or fewer e-mail addresses can send customized messages using Constant Contact's e-mail marketing system.

Tracking tools that show how many e-mails were opened, forwarded or not delivered are provided, said Lisa Sparks, a Constant Contact executive.


Read more: Charlotteobserver.com