Electronic Publishing - Electronic Newsletters

ELECTRONIC NEWSLETTERS

Electronic newsletters, also known as online newsletters, gained in popularity during the late 1990s. As consumers began using the Internet regularly for things like gathering information and purchasing goods and services, many businesses began using online newsletters to provide information about their company and Web site, and to promote their products and services. Quite often, online newsletters serve the same purpose as their print counterparts. According to the February 2000 issue of BusinessWeek Online, "they remind customers you're there, spark repeat business, and help attract new clients."

While many companies make online newsletters available on their Web site, the most popular online newsletter delivery method is e-mail. Web surfers can sign up to receive newsletters, both free and fee-based, which are sent directly to their e-mail accounts. For example, CNET.com, a site covering the computer and technology industries, has more than 40 free online newsletters, all of which are sent to subscribers via e-mail. The Motley Fool, known for its witty investment advice, also offers members free newsletters including FoolWatch Weekly and Investing Basics. Both of these investment newsletters are sent to each subscriber's e-mail address on a weekly basis. In June of 2001, Japanese Prime Minister Junichiro Koizumi launched an online newsletter covering political and technological issues. Within two weeks, nearly 2 million readers had subscribed.

While some online newsletters are published simply to convey information, many are published to generate additional sales for the publisher. In fact, a 2001 study conducted by Opt-in News revealed that one out of three online newsletter publishers uses newsletters to generate advertising revenue. Advertising in online newsletters is growing in popularity, mainly because it is often more effective than placing a banner ad on a Web site. According to Forrester Research, ads in e-mailed newsletters had an average response rate of 18 percent in 2000, compared to a Web site banner ad response rate of less than one percent. As Internet use continues to rise, the number of online newsletters—including those offering information, as well as those containing advertising—will likely continue to grow. Forrester Research predicts that by 2002, businesses will transmit a total of 250 billion e-mail newsletters.