Email marketing, a trend in its naïve stage and soon catching up, is driven by rising popularity of social media marketing and global internet reach and penetration. Businesses of all types, irrespective of their size and area of operations, are increasingly adopting to email marketing for the conceived benefits it provides.
Email marketing market size which was at USD 1.5 billion in the year 2010, is growing at a healthy CAGR of 20%, and is expected to reach market size of USD 6.5 billion by year 2018. The growth in the email marketing market is attributed to rising number of email marketing and hosting service providers and growing number of internet users. Some of the leading service providers are iContact, Mailigen, Campaigner, Pinpointe, Constant Contact, GetRespnse, Vertical Response and many more.
It is estimated that out of the world population of 6.9 billion, almost 2.27 billion people have access to internet, which is a hopping increase of 628.1% from the year 2000, when the number of internet users were limited to 3.60 million individuals. Internet growth has also seen a market penetration of 32.7% for the same period, which means that there is still a huge unexplored market with tremendous potential. Though the Asian market has highest number of internet users - approximately 1.1 billion with 26.3% penetration, the North American market has the highest penetration levels, approximately 78.7%, having 0.3 billion users. The estimate shows that there is still huge potential in the unexplored segments of these markets.
Another factor supporting the growth of the email marketing market is the rising number of mobile users, which has opened a new gateway of mobile marketing. Now, people are able to check mails while on the go, and have access to vast information at their finger tips. With smart phones, the opportunities available have become abundant, and can be converted to great strengths.
However, the email marketing market growth is facing challenges from sectors and companies in the unorganized sectors. Moreover developing markets require niche marketing, and email marketing becomes a non-viable option here. Also, with changing technology and rise in number of internet safety issues, individuals are resisting from viewing or reading unsolicited mails. The stringent regulations and privacy issues too have a negative impact on email marketing, and users are reluctant to respond to such mails.
Even the big three email providers, Gmail, Yahoo! and Windows Live Hotmail, which together account for 1 billion email accounts, are developing newer solutions to make the Web a safe place, free of cyber crimes. They are constantly working on tracking and reducing vulnerable emails.
Also, the rising efforts from Web search engines such as Google, and email service providers towards safeguarding their users from spams and abusive mails, is found to have a negative impact on email marketing, which has now opened up opportunities in other social media marketing sectors. Importance and efficiency of social media is a challenge for email marketing companies, which would spur the growth of innovative web and email design solutions.