Digital Impact: Spam Still Hurting E-Mail Business

Share this content:
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.


close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here