Why Email Shouldn’t Be Ignored

In recent months other digital marketing channels have stolen much of the limelight. According to a recent report from the Winterberry Group (see graphic below), display and social represent almost 40% of the digital marketing spend while email is hugely underrepresented with just 10% of the pie. A recent online ad campaign ratings study [1] by Nielsen may help to change digital marketers’ opinions about email and its effectiveness as a consumer messaging channel. The study found that reach among online ad campaigns’ desired audiences ranged widely from 2% percent to 36%. These are not exceptional numbers by any means, especially with precision being key for online marketing success. Email, on the other hand, is still a reliable and effective marketing channel, and at the individual level has the ability to reach 100%. In fact, according to the Direct Marketing Association [2], email ranks number one in ROI, with a $39.40 return on every dollar invested. That more than doubles online display advertising with an ROI of $19.72: $1. Yes, email is underrepresented, and in the coming months its share is expected to grow as more digital marketers shift their spend from other digital channels. What Makes Email Marketing So Attractive? Email is Easily Integrated – Email messaging doesn’t work in isolation. In the age of “big data,” the more relevant data you can collect from your customers, from across all digital channels (email, mobile, social & the web) the better. What you learn about your customers in one channel can be leveraged to provide better messaging in another channel. Email can also be easily and effectively integrated with social media to encourage social sharing increasing the reach of your message. Email is Mobile – In 2013 we saw mobile email penetration push over the 50% mark. During this time Inbox Marketer’s behavioural email data has shown major shifts in device usage and consumption patterns, underscoring the need for new strategies in the design and development of mobile optimized email. In 2014 mobile momentum has continued and smart marketers have leveraged the data in front of them to create more targeted digital messaging optimized for their customers’ devices. Email is Targeted - Email marketing through segmentation and dynamic personalization is one of the most targeted messaging channels available to marketers. Preference centres have increased in popularity and have proven themselves as an effective way to capture and retain customer information. This information can then be leveraged to deliver highly personalized messaging which results in significantly increased rates of engagement. Email is Effective – In a survey [3] of US and UK web users, email ranked among the top outreach channels at each stage of the purchase process, from introduction, to final prepurchase assessment, to post-purchase follow-up. Additionally, research [4] conducted by McKinsey & Co. in early 2014 showed that email is 40 times more effective at acquiring new customers than Twitter or Facebook. Email has always been a highly effective medium for customer retention and monetization. Email is incredible at keeping your brand and products/services in front of prospects and customers building loyalty and growing revenue over the long term. The fact that it dwarfs social for acquiring new customers just confirms its strength as a digital messaging channel. Email’s Share to Grow In 2014 it is expected that most marketers will see their digital marketing budgets grow. Email marketing as a tried, true, and relatively cheap messaging channel is likely to see its share of the marketing spend increase. Digital marketers are expected to shift spend from other digital channels to email. Do you expect to increase your email spend in 2014 and beyond? Please let us know in the comments section below. [1] http://www.nielsen.com/ca/en/insights/news/2014/first-online-ad-insights-will-help-canadian-marketers-yield-bett.html [2] http://thedma.org/ [3] http://www.emarketer.com/Article/Which-Tactics-Work-Best-Email-Marketers/1010020 [4] http://www.mckinsey.com/Insights/Marketing_Sales/Why_marketers_should_keep_sending_you_emails