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Effectiveness of E-mail Marketing in Korea: What Types of E-mail Ads Are Being Read?
Unformatted Document Text:  Effectiveness of E-mail Marketing 1 Effectiveness of E-mail Marketing in Korea: What Types of E-mail Ads Are Being Read? In the broadest terms, e-mail marketing refers to an advertising/marketing message embedded into an e-mail communication. The advertising/marketing message can take many forms within the e-mail. These modes of communication usually include text-based messages, HTML graphics and texts, and rich media mails. As the rate at which consumers click on internet banner advertising to seek more information (i.e., click-through rate) has diminished substantially in recent years, e-mail marketing has emerged as an attractive alternative for marketers. The click-through rate for internet banner advertisements currently is estimated to be 0.5%, while marketing emails typically experience a 15% click-through rate (Flint, 2001). It should come as little wonder then that given these click though figures spending on and use of e-mail marketing is expected to increase dramatically in the near future. It is estimated that by the year 2003 advertising expenditure on e-mail marketing will reach $4.6 billion, an increase of 360% over year 2000 figures (Flint, 2001). In addition, by the year 2003 e-mail marketing is expected to account for 15% of all online advertising activities, as opposed 3% in 2000 (Flint, 2001). E-mail marketing also has several advantages over typical internet banner advertising. First, consumers clearly prefer advertising through e-mail (i.e., e-mail marketing) as is demonstrated from current click-through rates. Second, unlike banner ads, e-mail ads can be designed to deliver customized marketing messages. Third, e-mail ads are delivered directly to a consumer’s mailbox, bypassing the problem of opportunity exposure usually associated with mass media advertising. Fourth, e-mail ads can be directed at highly targeted audience segments. Fifth, e-mail advertising requires low out-of-pocket expenditure. Finally, e-mail can be used to maintain personalized relationship with individual customers, since, unlike banner ads, e-mail can be used as a two-way communication channel. This characteristic makes e-mail marketing an especially appeal form of marketing communication as it provided a means for customer relationship management (CRM).

Authors: Won, Woo-Hyun., Lee, Jiyoung. and Lee, Joo-Hyun.
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Effectiveness of E-mail Marketing 1
Effectiveness of E-mail Marketing in Korea: What Types of E-mail Ads Are Being Read?
In the broadest terms, e-mail marketing refers to an advertising/marketing message embedded into
an e-mail communication. The advertising/marketing message can take many forms within the e-mail.
These modes of communication usually include text-based messages, HTML graphics and texts, and rich
media mails.
As the rate at which consumers click on internet banner advertising to seek more
information (i.e., click-through rate) has diminished substantially in recent years, e-mail marketing has
emerged as an attractive alternative for marketers. The click-through rate for internet banner
advertisements currently is estimated to be 0.5%, while marketing emails typically experience a 15%
click-through rate (Flint, 2001).
It should come as little wonder then that given these click though figures spending on and
use of e-mail marketing is expected to increase dramatically in the near future. It is estimated that by the
year 2003 advertising expenditure on e-mail marketing will reach $4.6 billion, an increase of 360% over
year 2000 figures (Flint, 2001). In addition, by the year 2003 e-mail marketing is expected to account for
15% of all online advertising activities, as opposed 3% in 2000 (Flint, 2001).
E-mail marketing also has several advantages over typical internet banner advertising.
First, consumers clearly prefer advertising through e-mail (i.e., e-mail marketing) as is demonstrated from
current click-through rates. Second, unlike banner ads, e-mail ads can be designed to deliver customized
marketing messages. Third, e-mail ads are delivered directly to a consumer’s mailbox, bypassing the
problem of opportunity exposure usually associated with mass media advertising. Fourth, e-mail ads can
be directed at highly targeted audience segments. Fifth, e-mail advertising requires low out-of-pocket
expenditure. Finally, e-mail can be used to maintain personalized relationship with individual customers,
since, unlike banner ads, e-mail can be used as a two-way communication channel. This characteristic
makes e-mail marketing an especially appeal form of marketing communication as it provided a means for
customer relationship management (CRM).


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