The most effective form of e-mail marketing is permission-based, which gets a reader response of between 6% and 8%, Gartner reported yesterday. Non permission-based e-mail marketing, commonly known as spam, receives a response rate of 1%, 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 $5 to $7 per 1,000 addresses while direct mail costs range from $500 (£352) to $700 per 1,000 addresses, Gartner said.
E-mail will account for 50% of mail received by US households by 2005, up from 35% today, threatening the $196.8bn (£138.4bn) direct mail market, Gartner said.