The study, produced by the Direct Marketing Association (DMA) UK and containing data from leading UK Email Service Providers (ESPs), reveals that year on year email volumes have increased by 53 per cent. In contrast, direct mail volumes have decreased, although expenditure has continued to rise in the medium.

While the report undoubtedly highlights the growth and effectiveness of email marketing - with bounce back rates dropping by 4 per cent in the first quarter – it also reflects the improved targeting of direct mail. So will email inevitably follow suit?

Matt Potter, head of client development at CheetahMail, says: "We would expect to see a corresponding drop in email volumes over time. Email was once seen as an 'also ran' channel for marketers but is fast becoming a fundamental requirement.

"With this comes both responsibility and higher visibility. The focus will now be on making campaigns more successful. This will mean that money should be aimed at effective creative, better targeting, automation and quality of recipients. With more time, effort and investment realised against each campaign the results should be higher but the volumes are potentially going to be lower." However, 100 per cent of respondents to the DMA report believe that volumes are set to carry on growing by, on average, a third. Over 40 per cent of respondents also believe that the success of email marketing campaigns is down to targeting, while 33 per cent believe it is due to the offer and 35 per cent think it's the creative.

While email marketing is clearly a highly valuable tool, Volker Wiewer, chief executive of eCircle, says marketers shouldn't get complacent. He states: "We cannot become a victim of our own success. We are still a young industry that evolves every day, but as email providers we need to take the permission concept seriously and employ rigorous legal restrictions for those who don't before we are all implicated by Government legislation."

Precision Marketing – 28/08/07