Viral Marketing - International case "Hotmail.com" (PART II)

The NEW Hotmail - Next generation in personal email


Hotmail is the best example of most successful viral marketing strategy over full life cycle. In 1996, a new product, free web based email was launched by Sabeer Bhatia and Jack Smith. 'Viral Marketing' catalyst was involved that would exponentially increase the rate of flow of information; nothing to do with virus but the growth is rapid like virus growth through word-of-mouth.

Impact and results of viral marketing strategy over hotmail growth can be summarized as: most important is that Hotmail grew a subscriber base more rapidly than any other company in the world.

Now, Hotmail is the largest email provider in the world. Exponential growth of subscribers; unprecedented source of personal information as almost subscribers filled up demographic and psychographic profile.

Also, with expense close to $500K spent on branding, marketing, advertising and promotion, very less was spent in comparison to nearly 12 million users. It is not just spending money, but spending money in a smart way will work. Hotmail became email king at reduced cost, less expense using viral marketing catalyst. Hotmail viral message (free email services) was involuntary and spread through word-of-mouth.

source: Ezine articles, SPD4290vm