I'm too young to remember Hotmail launch but GMAIL did market. Their marketing investments were
1. Free Storage an order of magnitude larger that anything anyone provided at that time which was an unbeatable proposition. I'd say they ate the costs of storage as marketing investment.
2. Viral invitation format -> exclusively perception
> Free Storage an order of magnitude larger that anything anyone provided at that time which was an unbeatable proposition
Gmail's free storage was two orders of magnitude better than the competition. Nearly three orders of magnitude bigger than Hotmail. They launched with a gigabyte against Hotmail's 2 MB and Yahoo's 6 MB.
We're so used to not worrying about email storage anymore that it's easy to forget just how small they used to be.