The study into the UK email specialist agency sector predicted that most e-marketing specialists anticipate strong growth this year. Market revenues are expected to soar from £120 million in 2004 to £148 million in 2005 - a growth of 25 per cent.
Chris Lake, editor at E-consultancy, said downward pricing is largely responsible. "Tough price competition has forced down the cost of sending emails via a specialist. Although prices are coming down the amount of client activity is increasing as new companies appoint email specialists and older ones ramp up their email strategy."
The study claims companies are choosing outsourced solutions, rather than in-house tools, because these may be dated. Email specialists are also moving towards value-added services, such as creative strategy, measurement and analytics.
"Those who blast out emails aren't going to do as well as those who take an e-CRM approach. There is still a lot to be learned from offline DM techniques."
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