A new forecast by Forrester Research shows that the spending on email marketing in the U.S. will reach $2 billion by 2014.

 

A greater number of direct marketing professionals will prefer using email due to falling CPMs (cost per thousands), a high return on investment, and growing consumer use of social email accounts, Forrester (News - Alert) said. If this usage continues at the current rate, in next five years, consumers will receive more than 9,000 email marketing messages annually.

 

Forrester Research (News - Alert) Vice President and Principal Analyst David Daniels said the increase in usage of email will be a gross waste of funds. He noted that by 2014 direct marketers will ‘waste’ $144 million on emails that never reach their primary target.

 

Daniels advises smart direct marketing pros to alter their tactics to overcome inbox clutter and increase relevancy.

 

According to the report, retention emails (emails permitted by the recipients) will continue to replace paper communications and will account for more than a one-third of all marketing messages in consumers’ inboxes by 2014.

 

The majority of the businesses will continue deploying email marketing on a self-service basis. Forrester predicts the growing complexity associated with data integration and new tactics to increase relevancy will drive growth in use of email service providers.

 

Over the next five years, the industry will see a twofold increase in spending on ad-sponsored or ad-supported newsletters.

 

Daniels stressed that the use of email in social networks will be one of the biggest challenges for direct marketers. It is imperative for the marketers to bridge the gap between social and traditional inboxes with social sharing tools over the next five years.

 

The latest report by Forrester is currently available to their clients and can be purchased directly at the company’s Web site.

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