Like all new techniques to minimize unsolicited email and phishing, the effect of AOL and Yahoo charging for a higher level of service will be determined by the market. Bronto thinks that this new service will appeal primarily to two groups: financial institutions sending bills, receipts and statements; and large direct marketers sending advertisements.
Financial institutions will find it appealing because the recipient receives validation that the email is in fact, coming from the sender. This mitigates the level of phishing rampant in this industry. Large direct marketers will find it appealing because they have larger advertising budgets and are well-seasoned in calculating the return on investment on their campaigns. This additional cost would simply plug into their existing analysis.
The new tiered service is a positive for email marketing in the long run since it validates the value of email as a marketing channel. Validation evidenced by tiering has touched many industries -shipping (ground versus Fed Ex), internet services (dial-up versus broadband) and air travel (coach versus first class). In all cases, the fact that one was willing to pay more for a higher level of service was a validation of the medium’s value.
-Joe Colopy, CEO,
Bronto
