In its second-largest acquisition, Amazon buys the company for $970 million.
Even though many retailers will still use HTML e-mails to save on production costs, video e-mails are becoming popular because of their high response rates.
Because of response rates that are at least double those of HTML-based messages, video e-mail is likely to become popular fast, marketers say. “Major advertisers love video e-mails already so they are here to stay,” says Paul Soltoff, CEO of St. Petersburg, Fla.-based DirectNet Advertising.net, which is planning to launch a video e-mail product and sniffer technology by the fourth quarter. “But both HTML and video will be used even five years from now because video e-mails require more production and a bigger budget to make.” HTML e-mails are faster to produce and can be expensive as well. DirectNet Advertising is working with computer technology firm Graham, N.C.-based ForeFront Technologies LLC for its new video product.