email-growth

The Fastest Growing and Most Valuable Email Marketing Companies

  |  December 29, 2013   |  Comments

A fresh look at the email-related companies making a splash in the private sector and public markets.

I wrote last year about "Email's Place in the Emerging Entrepreneurial Economy" and with the 2013 Inc. 5000 list just released, I thought it would be good to take a fresh look at the email-related companies making a splash in the private sector and public markets.

While much of the economy continues to sputter, the median growth rate of 2013 Inc. 5000 companies is an impressive 142 percent. The companies on this year's list report have created over 520,000 jobs in the past three years, and aggregate revenue among the honorees reached $241 billion.

"Not all the companies in the Inc. 500 | 5000 are in glamorous industries, but in their fields they are as famous as household name companies simply by virtue of being great at what they do. They are the hidden champions of job growth and innovation, the real muscle of the American economy," said Inc. Editor Eric Schurenberg in a prepared statement.

Email has always been about doing the dirty work of digital, being the unsung hero, and not minding the spotlight wandering over to less productive yet sexier marketing tools. Email's role in the economy is indisputable and 2013 was a banner year.

The blog Email Expert compiled a list of email-related companies that made the Inc. 5000 of which I have referenced in this column. I took out their top one and number 15 on the Inc. 5000 list, LivingSocial, as it certainly leverages email in a significant fashion but is not an email company from my view. I view an email marketing company as one that primarily sells email marketing products and/or services.

This leaves us with 11 companies that cover a wide range of the email marketing ecosystem. (Disclosure: my company, BrightWave Marketing, is on the list.)

  1. Sailthru - New York, NY #30
  2. LiveIntent - New York, NY #71
  3. Act-On Software - Beaverton, OR #172
  4. Marketo - San Mateo, CA #367
  5. Bronto Software - Durham, NC #1702
  6. BrightWave Marketing #1762
  7. Net Atlantic #2097
  8. Infusionsoft - Chandler, AZ #2296
  9. ClickMail Marketing - San Mateo, CA #2304
  10. Message Systems - Columbia, MD #3194
  11. Delivra - Indianapolis, IN #4592

These 11 companies had approximately $186.8 million in combined 2012 revenue and created approximately 955 jobs during the previous three years (according to Inc. statistics). Not bad - not bad at all.

The following are four publicly held companies that rely on selling email marketing in a significant fashion. Marketo, as a marketing automation company, places a large emphasis on email and from my opinion, email is the central marketing piece to marketing automation, so therefore I included it. It is also the one company included in the Inc. 5000 list that is now publicly traded. There are several large email companies that are smaller subsidiaries of their parent company and they are not included since they don't break out email-specific revenue in their filings.

Constant Contact. The small business software company has a market cap of $596 million and 1,162 employees.

Lyris. The company has 162 employees with a market cap of almost $17 million.

Marketo. Riding the marketing automation wave, the company has a $1.3 billion market cap and 339 employees.

Responsys. The company has a $721 million market cap with 996 employees. This is an impressive increase from last year on both fronts.

(Market caps are as of September 3, 2013 and public company data from Yahoo Finance).

Notably ExactTarget is no longer on the list due to being acquired by Salesforce.com. I would expect the publicly traded companies list to look much different next year with acquisitions continually reshaping the landscape and also the possibility of several email companies going public in the next year.

The employees, partners, clients, and vendors who work with these 15 companies all play varying roles in the continued growth of the email marketing sector. It is as thriving as ever and these 15 companies should be proud in the greater role they play in job creation, driving ROI for clients, and overall positive impact in each of their communities.

Image on home page via Shutterstock.

As 2013 comes to a close, we're pleased to share our top email columns of the year. This article was originally published September 5, 2013.

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ABOUT THE AUTHOR

Simms Jenkins

Simms Jenkins is CEO of BrightWave Marketing, North America's leading email marketing-focused digital agency. The award-winning firm specializes in elevating email marketing and digital messaging programs that drive revenue, cut costs, and build relationships. Jenkins has led BrightWave Marketing in establishing a world-class client list including Affiliated Computer Service (A Xerox Company), Chick-fil-A, Cox Business, Phillips66, Porsche, and Southern Company. The agency was recently ranked among the fastest growing private companies by Inc. Magazine.

Jenkins was awarded the prestigious AMY 2010 Marketer of the Year from the American Marketing Association for being the top agency marketer and the Email Marketer of the Year at the Tech Marketing Awards held by the Technology Association of Georgia. Jenkins is regarded as one of the leading experts in the email marketing industry and is regularly cited by the media as such and called upon by the financial community to provide market insight and consulting.

Jenkins is the author of two definitive and highly regarded books on email marketing; The New Inbox (published in April 2013 by ClickZ/Incisive Media) and The Truth About Email Marketing (published by Pearson's Financial Times Press in 2008). Jenkins is currently the Email Marketing Best Practices Columnist for ClickZ, the largest resource of interactive marketing news and commentary in the world, online or off. His industry articles have been called one of the top 21 information sources for email marketers.

He has been featured in Fortune Magazine, The Wall Street Journal, Adweek, Bloomberg TV, Wired Magazine, and scores of other leading publications and media outlets. Jenkins is a regular speaker at major digital industry and general business conferences.

Additionally, Jenkins is the creator of EmailStatCenter.com and SocialStatCenter.com, the leading authorities on email and social media metrics. Prior to founding BrightWave Marketing, Jenkins headed the CRM group at Cox Interactive Media.

Jenkins serves on the eMarketing Association's Board of Advisors among other civic and professional boards. He is also a mentor at Flashpoint, a Georgia Tech-based startup accelerator program. Jenkins is a graduate of Denison University in Granville, Ohio and resides in Atlanta's Buckhead neighborhood with his wife and three children.

Follow and connect with Simms on Twitter, LinkedIn, Facebook, The BrightWave Blog, and his book websites at NewInboxBook.com and SimmsJenkins.com.

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