Digital Impact: Spam Still Hurting E-Mail Business

Share this article:
Despite glimmers of hope in stemming the flow of spam, Digital Impact said its business continues to suffer from the flood of unsolicited commercial e-mail clogging inboxes.


The San Mateo, CA, e-mail service provider reported its fiscal first-quarter sales fell 5 percent from a year earlier, to $10.4 million. It lost $884,000 in the quarter compared with $293,000 a year earlier.


The company reported a decline in its acquisition services business, with e-mail renewal rates in the quarter falling to 70 percent from 80 percent.


"We believe we will more than make up for those losses in revenue [from e-mail] with the search engine marketing business of Marketleap," Digital Impact CEO William Park said yesterday during a conference call.


Yet for the rest of the year, Digital Impact expects the search business to have only a marginal effect on its financial results, adding $1.5 million in sales. It expects revenue will decline slightly next quarter before picking up for "modest" full-year sales growth.


Digital Impact said it expects prices for e-mail management will continue to decline, though not as quickly.


Park said marketers increasingly would look to Digital Impact for a range of services around acquiring and keeping customers, including search, Web site services and e-mail campaigns.


"We are optimistic because we are laying the foundation for growth," he said.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Hallmark Takes Baby Steps to a New Brand

Hallmark Takes Baby Steps to a New Brand

The company relied on digital to get its growing children's apparel brand off of the ground.

One Third of Americans' Social Media Time Is Spent on Facebook

One Third of Americans' Social Media Time Is ...

Pandora, meanwhile, attracts more user time but far fewer digital advertisng dollars, says a study.

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

Robert Thomson warns the EU that an antitrust deal with Google will lead to a decrease in competitive options for marketers and an increase in piracy.