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e-Dialog | News & Events | Press Release
     

FOR IMMEDIATE RELEASE

e-Dialog POV on Industry Consolidation

LEXINGTON, Mass., March 29, 2005 — e-Mail marketing is here to stay. Companies are getting smarter at leveraging e-mail marketing to increase customer loyalty and profits, and they are demanding higher levels of sophistication in the development and deployment of these campaigns. The excitement about e-mail marketing, however, is behind a wave of industry consolidation. Companies some thought to be e-mail service provider (ESP) industry leaders, Digital Impact, DoubleClick, PostFuture, YesMail and @Once, are being bought or broken up.

Industry watchers and companies employing the services of ESPs may be asking, “why is this happening?” and “is the industry in trouble?” In fact, it is just the opposite. Industry consolidation is both healthy and necessary. For quite some time, there have been too many players in this space and, as a result, supply has been larger than demand and buyers of these services have benefited as prices were driven down. Consequently, many ESP’s have had a difficult time maintaining profitability and finding sustainable success. As the dust settles, the industry will benefit as only the higher quality providers executing strategic e-mail marketing programs that achieve consistently great results for their clients survive. These benefits make this industry consolidation a vital, strategic element of this stimulating scene.

As the CEO of the leading provider of advanced e-mail marketing technologies, products, strategies and services for permission-based e-mail marketers, I’d like to share with you our view on how e-Dialog sees this industry consolidation shaking out. We believe that the industry will break down into two distinct vendor segments with two definite leaders in each: those that offer value-added e-mail marketing services and solutions with both full-service and collaborative self-service account structures, and those who sell off-the-shelf tools.

e-Dialog is considered one of the most successful value-added ESP’s by measure of sustained profitability and growth. Being sensitive to the impact of industry consolidation on marketing organizations, e-Dialog addressed this issue by continually investing in our integrated suite of services, technology and tools, and our people in order to help our clients around the world enhance their e-mail marketing operations. By adhering to our principles that e-mail and the data supporting it is a valuable medium that delivers important communications and that every client has unique needs, we will survive and thrive in this competitive environment. With an untouchable track record and promising future, e-Dialog has no intentions of being acquired and is completely committed to our long term success and, more importantly, that of our clients.

John Rizzi, Chairman & CEO
e-Dialog

About e-Dialog
Established in 1997, e-Dialog is a proven provider of advanced e-mail marketing technologies, products, strategies and services for permission-based e-mail marketers. The NFL, BMG Music Service, American Eagle Outfitters, TJX, Tesco, Reuters, Cendant and SmartBargains are just a few of the 60 top marketers that rely on e-Dialog’s flexible solutions to efficiently turn complex customer data into actionable and relevant e-mail campaigns that produce unbeatable results. JupiterResearch ranked e-Dialog a leading e-mail marketing service provider in 2004 based on its value and market suitability, and highlighted its reporting, analytics and deliverability features as strong and comprehensive. With offices in Lexington, Mass., and London, England, e-Dialog is a privately-held company whose investors include Flagship Ventures and Commonwealth Capital. For more information, visit www.e-Dialog.com or contact Arthur Sweetser at 781-372-3353.

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Media Contact:
Jean Borgman
(508) 451-5944
r.borgmanjr@comcast.net