63 Percent of U.S. Small Business Owners Optimistic About 2007 Holiday Season, According to Latest Constant Contact Survey.

Small businesses embrace email marketing to promote holiday season offerings

WALTHAM, Mass. -- Despite modest consumer spending predictions1, small businesses have a jolly outlook for the 2007 holiday season, according to Constant Contact's 3rd Annual 2007 Small Business Holiday Outlook. The survey of more than 2,000 U.S. small business owners shows that the majority of respondents (53 percent) are concerned about competition from large retailers; yet they're still optimistic, with 63 percent of them anticipating strong sales this holiday season. Constant Contact([R]), Inc. (NasdaqGM: CTCT) is a leading provider of email marketing and online surveys for small organizations.

U.S. small business owner's confidence in this year's upcoming holiday sales season is supported by their planned use of online marketing methods. According to the survey, 86 percent of small businesses will use email marketing to promote their holiday season offerings and 38 percent of them will use other online methods including banner ads and paid search, to generate attention. Surveyed businesses noted that email marketing has the greatest impact on driving holiday sales (35 percent).

"In light of modest sales predictions, this optimism from small business owners is great news for the upcoming holiday season and the U.S. economy overall," said Gail Goodman, CEO, Constant Contact. "Although the David versus Goliath scenario is especially evident during the holiday season, the increased adoption of online marketing tools is helping small businesses feel confident as they pursue a greater share of consumers' holiday spend."

Small businesses looking to bridge the gap and compete more effectively against large retailers are planning to begin their holiday marketing efforts several months in advance. According to the survey, 42 percent of respondents will begin their marketing earlier than they did last year, with as many as 63 percent of them beginning their promotions before Halloween.

While most small businesses surveyed anticipate a lucrative holiday season and have an overall positive outlook (54 percent) on the U.S. economy, most of them have no plans to increase staff during or after the holidays. In fact, 81 percent plan to keep the same level of staff through the holidays while more than 60 percent plan to maintain their current staffing levels in 2008.

The full survey can be viewed here: Constant Contact's 2007 Holiday Outlook. Sample questions and results include the following:

Do you anticipate a strong holiday season in sales for your business?

Yes  63%
No   37%

How concerned are you that competition from large retailers will hurt your holiday sales?

I'm very concerned        10%
I'm moderately concerned  20%
I'm slightly concerned    23%
I'm not concerned         47%

Are you planning any promotional offers for the December holidays?

Yes  63%
No   37%

What marketing methods will you use to promote your holiday season offerings? (check all that apply)

Email marketing                   86%
Online marketing                  38%
Direct mail                       29%
Flyers                            30%
Advertising (TV/radio/newspaper)  26%
Other                             79%

Will you begin marketing for this holiday season earlier than you did last year?

Yes  42%
No   58%

When do you typically begin your holiday marketing efforts?

Three months or more before Christmas   33%
Two months or more before Christmas     30%
One month before Christmas              11%
Less than one month before Christmas    2%
I do not do holiday-specific marketing  24%

(a)The 2007 Small Business Holiday Outlook survey was conducted from September 17 - October 1, 2007 through targeted online distribution to U.S. small businesses who are current customers of Constant Contact. Results were recorded from more than 2,000 respondents.

About Constant Contact, Inc.

Constant Contact, Inc. is a leading provider of email marketing and online survey tools for small organizations, including small businesses, associations, and nonprofits. Launched in 1998, Constant Contact has more than 130,000 customers worldwide today. To learn more, please visit www.constantcontact.com or call [phone].

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of our management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including those factors contained in our final prospectus dated October 2, 2007 for our initial public offering as well as other documents that may be filed by us from time to time with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

1 Resources:

National Retail Federation, 2007 Holiday Consumer Intentions and Actions Survey. October 16, 2007.

Retail Forward, TNS Retail Forward Holiday Forecast, September 2007.

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