---

---

Email Marketing's Effectiveness

Email marketing’s ROI in 2008 was $45.06 for every dollar spent on it, according to the DMA’s report “The Power of Direct Marketing,” which analyzed direct marketing activity across major industries.


However, compared to other media, the ROI of email marketing has been in a faster decline than other advertising avenues. This decline could be attributed to the maturation of this method. But also to how companies are investing more on emails that are not focused on generating revenue, like order confirmations, or the failure that companies have experienced by using “rented” databases.

Despite these issues, advertisers and retailers do not want to reduce their media budget for email marketing, because they recognize the ROI is going to be affected by the relevance of the messages sent and the segmentation done on the databases, and also the low cost compared to other online marketing strategies.


Typically in any recession, there is tremendous pressure on marketers to do more with less. According to MarketingSherpa, 24 percent of B2B and 34 percent of B2C marketers reported budget cuts this year. Not surprising given its remarkably high return on investment, email marketing increases during tough economic times.

Also, in email’s favor is its measurability. Marketers can quickly and effectively measure who is responding to messages, which promotions work best and so much more.

Next article will include the 5 email strategies.