The research firm said e-mail advertising revenue is projected to reach $1.26 billion in 2002, up from $948 million in 2001. By 2005, e-mail advertising revenue is expected to grow to $1.5 billion.
"Direct mail has reached its peak and will account for less than 50% of mail received by U.S. households by 2005, down from 65% in 2001," said Denise Garcia, research director for GartnerG2.
The study also found that e-mail campaigns are significantly less expensive to execute than traditional direct mail campaigns. Currently, e-mail costs range from $5 per thousand to $7 per thousand while direct mail ranges from $500 per thousand to $700 per thousand.