Email spending set to increase this year

Expenditure on email marketing platforms is expected to grow by over one fifth this year, according to industry forecasts.

E-consultancy ’s 2008 Email Marketing Platforms Buyer’s Guide predicts that spending on email marketing will increase by 24 per cent, with the sector reaching a worth of £274 million by the end of the year.

The report also stated that although the actual cost of delivering email has dropped, businesses are beginning to invest more money on email marketing because of the channel’s profitability.

Linus Gregoriadis, head of research at E-consultancy told Precision Marketing: “Despite the general economic downturn, email service providers will continue to prosper. In turbulent times, it makes more financial sense than ever for companies to focus on marketing to their own customers and prospects.”

He also said that companies are continuing to invest in strategic email services “over and above the basic broadcast of email”.

Email now accounts for 23 per cent of all digital marketing budgets, according to E-consultancy’s Email Marketing Industry Census.