Despite the ascent of Web 2.0, IMs, and text messaging, email marketing is still growing in importance in the marketing mix. And according to Datran Media Research (“The 2007 Email Marketing Survey”), 83% of the marketers who responded thought that email ROI will increase over last year. Statistics collected from a variety of additional sources indicate that email marketing still has a bright future.
The Direct Marketing Association’s 2006 Response Rate Trends Report finds that the highest direct marketing response rates result from telemarketing (2.6%) and email (2.45%). Email’s ROI index is 70% higher than any other method of direct-response marketing. The organization also estimates that marketers in the United States alone will spend $500 million on email marketing which is expected to generate almost $22 billion in sales.
Following are some statistics cited by Internet Retailer (2007) as a result of its monthly surveys:
- 18.7% of internet retailers indicated that email generates 1% to 2.5% of sales
- 37.4% of online merchants find that email generates between 2.51% and 15%
of revenues
- For 11% of online merchants, email drives more than 25% of total sales
- Nearly three-quarters (73%) of chain retailers, catalogers, virtual merchants, and consumer brand manufacturers report spending only 5% or less of their total marketing budgets on email marketing
Compared to other forms of online marketing, email delivers sales at an average cost per order of less than $7, compared to $71.89 for banner ads, $26.75 for paid search and $17.47 for affiliate programs. - Shop.org, State of Retailing Online 2007 report (Sept. 2007);
For additional email marketing statistics, you can visit the following websites:
http://www.emailstatcenter.com/
http://www.internetretailer.com/
http://www.the-dma.org/
http://www.mediapost.com/
