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For those of you who are on the prawl for a under-valued internet company, with more potential than YESM, MAIL, XMCM combined and trading on Nasdaq all you have to do to get excited is READ THE FOLLOWING: (COMTEX) B: POPMAIL.COM, INC. ELABORATES ON PLANS AND PROGRESS IN BUI B: POPMAIL.COM, INC. ELABORATES ON PLANS AND PROGRESS IN BUILDING PERMISSION- BASED EMAIL MARKETING COMPANY MINNEAPOLIS, Oct 13, 1999 /PRNewswire via COMTEX/ -- PopMail.com (Nasdaq: POPM) today announced the launching of PopMail Network Services, a suite of "permission" and "affinity" marketing email communication services targeted at businesses in the broadcast, media, sports, and entertainment industries. The goal of the network is to permit companies to build closer relationships with their customers, lower marketing and communication expenses, and generate revenue using electronic and traditional commerce. The Network was created through the combination of two proprietary email services: * ENEWSNOTIFIER(TM) (ENN) - a "permission marketing" email service that allows companies to collect preference and demographics information from their constituents and then send out targeted, personalized and customized messages. * Popmail(TM) - an affinity email service that allows companies to offer free web-based email boxes on their home pages. Constituents sign up for a personal email address that contains the company name. Companies benefit from the affinity with their customers, higher traffic to their web site as members retrieve their email and the ability to send targeted email messages to selected registrants. Separately, these are the number one services in their industries. Together, they represent over 600 organizations in broadcast, entertainment and sports, including over 500 radio stations, over 80 television stations, and more than 30 professional sports teams. The business objective of Popmail.com is to be the leading permission- and affinity-based email marketing Network. "Companies in these verticals have customers with a high affinity towards their products and services. Customers avidly desire to know more about their favorite team, radio station, upcoming broadcast, or publication" said Stephen King, CEO of PopMail.com. "Combining these email services allows companies to cut through the clutter and inefficiencies of traditional marketing and begin promoting and branding more effectively and efficiently to their viewers, listeners, fans, and customers on the topics and items that are of interest to them. "The PopMail.com Network will use email much like a personalized television channel. Email, like TV, is a distribution channel for delivering marketing messages to consumers. Those email messages may be text, graphic, audio, video or a combination, including full-blown television commercials. The messages can be delivered to people who want to receive them and who can view the messages at their leisure. Delivery via email is instant and inexpensive." PopMail(TM) PopMail, developed by Dallas-based PopMail.com, is the nation's leading branded "affinity" email product for radio stations and their listeners. PopMail email accounts are free to listeners and each listener's email address is branded with the station's call letters or logo (e.g. joe@kluvmail.com.). PopMail.com receives set up fees and hosting fees for PopMail(TM) King commented, "Through PopMail, stations can, for the first time, identify and contact listeners directly and individually. Since email users must go to the station Web site to access their email account, PopMail greatly increases traffic on station sites. "PopMail.com helps its business clients turn customers into 'members'. PopMail.com's clients gain permission to send personalized marketing messages to their members. The members receive only the messages they request from a source they trust. PopMail.com's clients can deliver these tailored marketing messages at a fraction of the client's cost of maintaining its own in-house email management." Pending Merger with ROI Interactive The network announcement is the first major strategic initiative since PopMail.com entered into a definitive agreement to acquire Dallas-based ROI Interactive and to jointly operate PopMail.com and ROI under the name PopMail.com. ROI is a leading permission-based email marketer in the fields of television and sports. ROI was founded in June 1998 and has been profitable since inception. TV stations and sports teams use ENN to notify viewers and fans of upcoming TV news stories, games, available tickets, and merchandise of particular interest to the member. "The acquisition of ROI is PopMail.com's first step toward building a vertically integrated, dominant business-to-business permission- and affinity- based, email marketing Network," continued King. "PopMail will receive licensing fees and hosting fees for ENEWSNOTIFIER." Gary Schneider, CEO of ROI Interactive, said, "ROI is an excellent strategic and management fit with PopMail.com and expands substantially the Company's presence as a leading permission- and affinity-based email marketer in its planned verticals. "ROI believes that the key for businesses that use the Internet as a communication tool will be to get "permission" from the on-line user to communicate, build brand loyalty, and sell products and services," Schneider added. "Once this permission is obtained, the long term revenue generation potential of each user/subscriber becomes very attractive." The PopMail Network Strategy The Company outlined their strategic objectives over the coming months. In presenting these goals Stephen King noted, "PopMail.com has an aggressive strategy to build a vertically and horizontally integrated email Network focusing on the broadcast, media, sports, and entertainment industries." The Company's strategies include: 1) Growing and strengthening the Company's leadership positions in: * Television and radio * Professional sports (MLB, NHL, NBA, NFL, minor leagues) * Colleges, universities, and in other sports verticals * Media and entertainment 2) Continued investment in research and technology * Integrate ecommerce functionality into the PopMail Network Services * Introduce enhanced versions of the PopMail Network Services * Introduce multi-lingual versions of the Popmail Network Services * Integrate the two PopMail Network Services onto one platform and one integrated database 3) Marketing and Management * Develop the PopMail Network portal that integrates the local Affiliates * Develop attractive strategic partnerships to enhance the Network, (financial services, travel and leisure, cable network platforms, etc.) * Develop additional streams of revenue across our Popmail.com Network through "PopMail Plus" * Initiate aggressive advertising, promotion, and public relations campaigns * Recruit outstanding members of the management team to steward the business Strategic Growth Objectives The Company also intends to pursue growth through mergers, acquisitions, joint ventures, and strategic alliances. Candidate companies will include: 1) Merger and Acquisition: * Permission marketing and affinity-based email companies that meet certain criteria for growing and/or enhancing our Member databases, services, and revenues * Email marketers in other verticals once we have reached dominance in our stated verticals * Email marketing companies that provide applications that enhance our services, such as tracking methodology, member research, and ecommerce 2) Strategic Relationships and Joint Ventures: * Companies providing web services for broadcast, media, sports, and entertainment * Companies that enhance our Network and network services The Company intends to secure lines of credit and additional capital to fund these strategic growth initiatives. The Private Securities Litigation Reform Act of 1995 provides a "safe- harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contains statements that are forward-looking, such as statements relating to plans for future growth. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include, but are not limited to, completion of definitive purchase agreements, shareholder approval, those relating to development activities, dependence on existing management, leverage and debt service, domestic or global economic conditions, and changes in customer preferences and attitudes. For more information, review the Company's filings with the Securities and Exchange Commission. Popmail.com - Background Information Client Use of PopMail.com Products Professional sports teams use PopMail.com's ENEWSNOTIFIER(TM) (ENN) and PopMail(TM) to build relationships with their fans, generate e-commerce revenue, and decrease marketing expenses. The success of ENN for the Dallas Stars and the Texas Rangers was profiled recently in the June 7 edition of Sports Illustrated, and the July issue of The Wall Street Journal Interactive Edition. Both publications reported that the Stars sold 300 last-minute seats for their first play-off in 20 minutes through "e-deals," the Stars' name for ENN. The Stars have been using "e-deals" to communicate with and market to fans since February 1999. Brian Byrnes, Assistant VP of Ticket Sales for the Stars, calculates that ENN generated $100,000 in additional ticket sales over the last eight regular season games of the 1999 season; ticket sales that would not have occurred without ENN. "There were a couple of games towards the end of the year when we thought the sellout streak (of 49 games) was in jeopardy, but notices sent out using e-deals saved it," said Byrnes. The Texas Rangers launched "Inside Pitch," the team's ENN service, at the beginning of the baseball season and have signed up over 7,000 fans who want to be notified about ticket availability, merchandise specials, and promotions. Television and radio stations currently use ENN to notify members of upcoming programs (like news reports or shows on specific subjects) and events (like severe weather warnings or concerts) on topics selected and requested by the member. PopMail.com has long-term agreements with over 500 radio stations in 38 of the top 40 markets, 80 television stations in all of the top 10 markets, 25 professional sports teams and a number of other clients in the media and entertainment industries. Popmail.com and ROI currently have a client list that includes CBS Radio, Chancellor Media, Susquehanna Media, ABC O&O television stations, A.H. Belo, Hearst, LIN Television, Scripps Howard, Cosmos, Granite Broadcasting, Benedek Broadcasting, Dallas Stars, Anaheim Angels and the Boston Celtics and numerous others. The PopMail.com Network coverage currently extends to 48 of 50 states. Permission Marketing Terms Interruption marketing - unsolicited advertising messages that are inserted into the midst of a program, game or music the consumer wants to hear or see. Due to the great clutter of messages and the "time drought" of consumers, most unsolicited commercial messages are ignored Opt-in email - currently is being used by most email marketers to drive customers to their sites to sign up to be notified about promotions, discounts and specials from a retail category or broad interest areas. These opt-in lists often contain no preference or demographic information. In addition, they are frequently resold to be used for mass emailings ("spam"). Spam - email of uncertain origin. Spam is interruption marketing via email. To date, Internet direct marketing practices have focused primarily on mass mailing of promotional email messages. Although this method is a low cost direct marketing vehicle, the unsolicited and untargeted nature of spam mailings has resulted in negative consumer reaction, the recent introduction of regulatory legislation and very low response rates. The limitations of traditional direct mail and the negative issues associated with spam have created the need for a cost-effective way to do direct marketing over the Internet. Preference marketing - a middle ground approach. The consumer receives messages related to his/her preferences but the consumer does not request the messages. Many preference-marketing companies mistakenly call themselves permission marketers. Permission marketing - the consumer asks to receive particular marketing messages and is sent only the messages he or she requests. If these messages also come from source the consumer trusts and has affinity for (like a sports team) then the consumer qualifies as a "Member." Research has demonstrated that consumers with little affinity for a product or company are unlikely to respond to that company's unsolicited commercial messages. Affinity - the "bumper sticker effect." Consumers want a sense of belonging to the extent they wear their favorite teams logo on hats and T- shirts. They can achieve this sense of belonging by having their name paired with their favorite team on their personal email address. Member - a consumer who (1) has an affinity for a PopMail.com client (e.g. a sports fan for their local team or music lover for their radio station) and (2) has asked the client to send messages to him/her via email. A member is different than a "subscriber" and far more valuable. PopMail CEO Stephen King commented on some marketing trends behind these terms, "Competition in the overall email product marketplace comes from "opt- in" email marketing companies. These companies primarily sell, rent or lease email lists for one-time use. The subscriber signs up on the seller's web site only, not the client's, for categories, not knowing who they will receive email from. None of these companies provide both the true permission and affinity marketing services that PopMail.com does. Nor do they offer a custom feature set found in our services." | ||||||||||||
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