ESPs and consolidation

Earlier this week Bloomberg news reported that an anonymous source  told them Verizon was looking to acquire or investigate a partnership with AOL. It didn’t take long for the Verizon CEO to quash the acquisition rumors. Acquisitions and partnerships have always been around in technology, this is nothing new. But it made me think a little bit about the acquisitions and mergers in the ESP space.
The last 2 years have seen unexpected purchases of ESPs. Oracle bought Eloqua. Deluxe acquired Vertical Response. IBM has acquired a number of players in the email space, including parts of mail.com, SilverPop and Pivotal Veracity. eBay acquired e-Dialog. Salesforce acquired ExactTarget. Big companies seem to use the acquisition process to acquire the technology needed to send mail to and on behalf of their customers.
I’ve heard some people claim this is the beginning of the end of the stand alone ESP. I disagree. I think there is enough market demand to support stand alone ESPs. But the market is crowded and there are a lot of ESPs out there. There will be some consolidation. Some ESPs will be bought, either for their technology or their staff. Some ESPs will change and add more features. Some big companies will decide to install big appliances to run their own marketing in house.
Things will change but that’s what happen as a market matures. And the ESP market is maturing.
Who do you think will be bought next?

Related Posts

Does CAN SPAM apply to individual prospecting emails

Two different people on two different mailing lists asked very similar questions recently. Are people who send individual prospecting emails required to comply with CAN SPAM.
My opinion (not a lawyer, don’t play one on TV, didn’t stay at a Holiday Inn last night) is that CAN SPAM does not mention anything about volume, and any individual unsolicited email that has a “primary purpose” of advertising is required to include a physical postal address and a way to unsubscribe.
My other take on it is for individual prospecting emails failing to comply with CAN SPAM is like speeding. It’s illegal, and you can get in legal trouble by doing it, but everyone does it and few people get caught.

Read More

VerticalResponse acquired

The acquisition of email service providers continues. Last week Deluxe (yes, the check printing people) acquired Vertical Response. This appears to be positioning themselves to improve their collection of business services to include email marketing.

Read More

Gmail FBL update

Last week Gmail started contacting ESPs that signed up for their new FBL with more information on how to set up mailings to receive FBL emails.
One of the struggles some ESPs are having is the requirement for DKIM signing. Many of the bigger ESPs have clients that sign with their own domains. Gmail is telling these ESPs to insert a second DKIM signature to join the FBL.
There are a couple reasons this is not as simple or as doable as Gmail seems to think, and the challenges are technical as well as organizational.
The technical challenges are pretty simple. As of now, not all the bulk MTAs support multiple signatures. I’ve heard that multiple signatures are being tested by these MTA vendors, but they’re not in wide use. This makes it challenging for these ESPs to just turn on multiple signatures. For ESPs that are using open source software, there’s often a lot of customization in their signing infrastructure. Even if they have the capability to dual sign, if they’re not currently using that there is testing needed before turning it on.
None of the technical challenges are show stoppers, but they are certainly show delayers.
The organizational challenges are much more difficult to deal with. These are cases where the ESP customer doesn’t want the ESP to sign. The obvious situation is with large banks. They want everything in their infrastructure and headers pointing at the bank, not at their ESP. They don’t want to have that second signature in their email for multiple reasons. I can’t actually see an ESP effectively convincing the various stakeholders, including the marketing, security and legal staff, that allowing the ESP to inset a second signature is good practice. I’m not even sure it is good practice in those cases, except to get stats from Gmail.
Hopefully, Gmail will take feedback from the ESPs and change their FBL parameters to allow ESPs to get information about their customers who sign with their own domain.

Read More