Email marketing can be described as a direct marketing channel intended to send a message to a group of email users that have some common trait. In a broad sense, every email that is sent to a current or potential customer can be regarded as email marketing. The email marketing channel is used to request businesses, press sales, or donations, and send ads aimed at building brand awareness, loyalty, or trust.The email marketing market stood at US$1.5 bn in 2010 and is expected to be worth US$6.5 bn by 2018, rising at a phenomenal 20% CAGR from 2012 to 2018.

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Increasing Internet Penetration Stimulates Email Marketing Market

Email marketing is gaining popularity due to a few favorable aspects that are the backbone of these services. First and foremost, the increasing reach of the internet across distant corners of the globe has proved favorable for this channel to be looked upon as a mainstream marketing medium. Hence, businesses of all types, regardless of their size, are increasingly using email marketing. Businesses have recognized the advantage of reaching a large consumer base using this medium, which is economical in terms of both cost and time.

As per statistics of census.gov, an accredited agency that records population data, the world population is currently 7.3 billion. Of this, it is estimated that almost 2.27 billion people have access to the internet, which is a phenomenal 628.1% increase from the number of people that had access to the internet in 2000. In absolute numbers, 3.6 million people had access to the internet in 2000. This magnitude presents hope for further expansion of internet accessibility across the world, thus providing strong growth prospects for the email marketing market.

Use of Smartphones Allows Email Marketing on the Go

On the basis of regional differentiation, Asia has the highest number of internet users – approximately 1.2 billion – and has a 26.3% internet penetration. North America accounts for the highest internet penetration level, which is 78.7%, with 0.3 billion users. Thus, these regions present huge growth potential for internet penetration and its related services, such as email marketing.

In recent times, the burgeoning number of mobile users has become an important factor that has supported growth of the email marketing market, by means of the mobile marketing gateway. This is because the use of smartphones enables users to have access to email irrespective of time and location constraints. In addition to this, the rising use of smartphones has also added to mobile marketing capabilities, and can be converted into considerable commercial gains.

Internet Information Theft Malpractices Detrimental for Email Marketing Market

However, growth of the email marketing market has been challenged by the unorganized industry sectors, such as family-run businesses, especially in developing economies. Furthermore, developing markets require customer-centric marketing, which matches the cultural and social norms of these markets. Thus, email marketing is not an effective solution for these markets, which hampers the global market for email marketing.

In addition, internet malpractices such as hacking of personal information and streaming of inappropriate content have been reasons for individuals to refrain from viewing or reading mails from unidentified senders. This has created negative publicity for messages sent with a marketing intent, which in turn has impacted growth of the email marketing market.

To counter the misuse of free mail services, the three big email providers – Yahoo, Gmail, and Windows Live Hotmail are developing newer solutions that can track such mails and safeguard users from spam and abusive content.

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