U.S. SMALL BUSINESSES BOOST MARKETING EFFORTS IN RESPONSE TO ECONOMIC UNCERTAINTY

Constant Contact Annual Small Business Holiday Survey Shows
More Businesses Plan Heavier Promotional Push Earlier

Waltham, MA - October 27, 2008

With the critical holiday buying season on the horizon, it's no surprise that small businesses are concerned about the uncertain state of the economy. Rather than accept the dire predictions of lower sales, most small businesses will bolster their holiday sales efforts with aggressive marketing plans, according to Constant Contact's 4th Annual Small Business Holiday Outlook. Of those businesses surveyed, 76 percent are planning holiday promotions and last minute shopping offers, up from 62 percent in 2007, and more than half (53 percent) will begin marketing earlier this year. Constant Contact®, Inc. (NasdaqGM: CTCT) is a leading provider of email marketing and online surveys for small organizations.

The majority of responders (63 percent) have already begun their holiday marketing campaigns in a bid to entice customers to shop early and avoid the rush, and most will focus on a combination of promotional and last minute shopping offers.

"There's no question the economy is a cause for concern, especially for U.S. small businesses that rely heavily on holiday sales. However, in true entrepreneurial fashion, small businesses are fighting back," said Gail Goodman, CEO of Constant Contact. "Small businesses recognize the value of focusing their marketing efforts to enhance communication with their loyal customers, as well as to attract new business. Email marketing and online surveys are catalysts to the success of small businesses in any economic environment, but they can make the critical difference in trying times. History shows that small businesses have led the way to better economic times in the past, and we are confident that today's small businesses will do so again."

Email Marketing Most Effective
Small businesses tend to use a mix of marketing methods, but the majority (60 percent) say they rely on email marketing most for the holiday season, far surpassing all other marketing methods including direct mail (28 percent), flyers (27 percent) and advertising (21 percent). Additionally, 41 percent identified email marketing as having the greatest impact on holiday sales followed by both direct mail and advertising, which garnered just 11 percent each.

"Our overall marketing strategy has always included email marketing to our existing customers, as they are most likely to shop with us again. Dollar for dollar, it is by far our best method of communication," said Megan Murphy, co-founder of online retailer Bella of Cape Cod. "We have tried traditional advertising in our local newspapers, but felt it was ineffective and over-priced. Email marketing is the most cost effective and easiest way to market to our customers."

Economic concerns reflected in holiday sales outlook
In a significant drop from last year, only 25 percent of surveyed businesses rate their level of confidence in the economy as "excellent" or "good" versus 54 percent in 2007. This shift is reflected in businesses' holiday sales outlook, which shows just 33 percent anticipate strong holiday sales this year down considerably from last year's 63 percent. This number does not include the 41 percent who are unsure what to expect, further illustrating the uncertainty small businesses are facing over the coming months.

Eighty-six percent of small businesses report concern that the economy will harm their holiday sales. Other significant concerns are high energy/fuel costs (23 percent) and credit availability (34 percent). These concerns are evident in small businesses' sales projections, seasonal hiring, reward and marketing plans, with stark differences in these areas noted versus trends established over the previous three years.

Small business exhibits caution in face of economic uncertainty
The economic concerns are also impacting small businesses' seasonal and 2009 hiring plans. A sure sign of the times, just 16 percent plan to add seasonal staff to meet holiday demands, a decrease of three percentage points from last year. Likewise, only 28 percent plan to increase staff levels in 2009 down from 37 percent in 2007.

In another departure from last year's results, businesses planning to give holiday bonuses this year fell by seven percentage points (35 percent versus 42 percent in 2007). Conversely, surveyed businesses are evenly split between those planning a holiday party and those who are not. Businesses planning parties this year represent an increase of two percentage points over last year's results (48 percent).

Sample questions and results include the following (percentages based on numbers of respondents to a particular question and some questions allowed multiple selections where applicable):

What types of marketing do you employ for the holidays? (Check all that apply)

Email Marketing	60%
Direct Mail	27%
Flyers	27%
Advertising (TV, Radio, newspaper)	21%
Online Marketing/Banner Ads	20%
Other	8%

Are you planning any promotions and/or last minute shopping offers for the December holidays?

Yes, Promotional Offers	38%
Yes, Promotional Offers and Last Minute Shopping Promotions	31%
Yes, Last Minute Shopping Promotions	7%
No	24%

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

Yes	53%
No	47%

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

Yes	32%
No	27%
Unsure	41%

How important are the December holidays to your annual revenues?

Extremely Important	29%
Very Important	20%
Important	18%
Moderately Important	18%
Not Important	15%

The 2008 U.S. Small Business Holiday Outlook survey was conducted through targeted online distribution to U.S. small business owners, who are current customers of Constant Contact. Results from more than 2,000 respondents were recorded. This survey was conducted from September 23, 2008 through October 10, 2008.

About Constant Contact, Inc.
Launched in 1998, Constant Contact, Inc. is a leading provider of email marketing and online survey tools for small organizations, including small businesses, associations, and nonprofits. To learn more, please visit www.constantcontact.com or call (781) 472-8100.

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions 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 Constant Contact's control. Constant Contact's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, the Company's ability to attract new customers and retain existing customers, the Company's dependence on the market for email marketing services for small businesses, nonprofits, and associations, general economic conditions and economic conditions specifically affecting the markets in which the Company operates, adverse regulatory or legal developments, the Company's ability to continue to promote and maintain its brand in a cost-effective manner, the Company's ability to compete effectively, the continued growth and acceptance of email as a communications tool, the Company's ability to develop and introduce new products or enhancements to existing products, the Company's ability to manage growth, the Company's ability to attract and retain key personnel, the Company's ability to protect its intellectual property and other proprietary rights, and other risks detailed in Constant Contact's Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 filed with the Securities Exchange Commission ("SEC") on August 13, 2008, as well as other documents that may be filed by the Company from time to time with the SEC. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Constant Contact's views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its views to change. Constant Contact undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Constant Contact's views as of any date subsequent to the date of this press release.

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Lisa Dilg
PerkettPR for Constant Contact
(313) 399-0892
constantcontact@perkettpr.com

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Rosalind Morville Constant Contact 339-222-5772 rmorville@constantcontact.com