Email: The Highest ROI Of Any Marketing Channel

October 24th, 2011 | By Adam Holden-Bache | No Comments

Email Return on Investment ROIOne again, commercial email marketing reigns supreme as the best channel for marketers. According to this year’s Direct Marketing Association’s Power of Direct economic impact study, email returns higher ROI than search, display, social networking and mobile.

Email is bringing in $40.56 for every dollar spent on it. This is compared to catalogs’ ROI of $7.30, search’s return of $22.24, Internet display advertising’s return of $19.72 and mobile’s return of $10.51.

The only bad news for email marketers is that email ROI is dropping off year to year, coming down from it’s high of $52.23 in 2006 to $43.62 in 2009, then down to its current $40.56. And it’s estimated that it’ll continue downward to around $35.02 in 2016.

Even so, it’ll still be a while before the rising channels overtake email. Social networking is currently at $12.90, up from $12.71 last year. Mobile marketing ROI is also rising. From it’s current $10.51 it is expected to rise to $11.37 in 2012 and $12.45 in 2016.

From a sales perspective, email will deliver $63.1 billion in sales this year, up from $57.8 billion last year. That should rise to around $67.8 billion in 2012 and $82.2 billion in 2016.

The DMA expects digital channels to continue to increase their share of the marketing budget from 19% in 2011 to 21% in 2012.  The total spend on digital marketing has grown by $14.5 billion since 2006.

So why does email continue it’s dominance?

Email is the only channel where recipients raise their hand and request marketing content. Users give permission for marketers to contact them, and that relationship produces results.

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