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False Positives Waste Big Bucks: Study
2004-01-28

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DARIEN, Conn. -- More aggressive email filtering and blocking by ISPs, coupled with higher volumes of permission-based email, will push up the cost of having legitimate email wrongly blocked from $230 million in 2003 to $419 million by 2008, a new Jupiter Research study says.

The study said the false-positive rate actually is expected to go down, from 17 percent now to under 10 percent by 2008, as ISPs shift to identity-verification systems to detect spammers.

However, the study projects marketers will spend more on retention and sponsored email campaigns over the years, resulting in more wasted spending.

The study also found more consumers opted in to receive email marketing but also reported getting more spam. The study found recipients reported a 26-percent increase in receiving junk email, but that permission-based marketing grew by 36 percent at the same time.

"The increase in email volume and the fact that consumers are spending less time in their in-box is creating a consumer attention deficit to permission-based email marketing," Research Director David Daniels said. "Despite the year-over-year increase in permission email, consumers only perceive an increase in spam."

Based on the study findings, the Jupiter Research report said companies should invest in identity-based trust and bonded-sender programs to improve delivery rates.