Email stays hot through yearend, report agencies

NASDAQ and online ad slump be damned, email marketing continues to tear up the track as the year comes to an end.

PennMedia.com, the internet's largest email newsletter network, reported this week that its subscriber base is nearing 50 million and revenues are up 700 percent from last year.

And other companies are reporting optimistic developments in the category as well, such as Responsys.com's announcement of a strategic alliance with Cohn & Wolfe, a leading international public relations firm. Cohn & Wolfe will use the Responsys platform to deploy online direct marketing campaigns for its marketing communications clients in a variety of industry sectors.

PennMedia's growth has been particularly impressive for the amount of advertising it has been able to attract. "The growth in our newsletter network provides some insight into how consumers are using the internet," said Jaffer Ali, PennMedia's President and CEO. "They are becoming tired of surfing and prefer to find information on the topics that most interest them in their email inboxes every morning."

While some of the company's growth can be attributed to the addition of new newsletters, a number of the network's more popular newsletters have experienced growth rates that outpace even that of PennMedia. For example, the circulation for a "freebies" newsletter is currently more than 1 million, which represents an increase of nearly 4,900 percent since January.

"We founded PennMedia with the philosophy that following the consumer's lead would be our path to profitably on the internet," added Ali. "Keeping focused on this path enabled us to be profitable in our fourth month of operation and continually grow the network without requiring any additional funding."





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