The ROI for e-mail marketing was $57.25 for every dollar spent. The ROI of all non-e-mail-related online marketing was $22.52, less than half. And yet marketers only spent around $300 million on e-mail marketing efforts, compared to $12 billion for non-e-mail-related marketing--$12 billion to get a return that is less than half of what can be achieved in e-mail.
We also know that the return on e-mail is much higher for companies that segment their e-mail marketing offers, so the $57.25 is really just a drop in the bucket compared to what the ROI potential is for e-mail.
We also know that, especially for retail, e-mail is considered the largest demand-generating medium for online retailers.
So where is the disconnect: e-mail provides over twice the ROI, but companies now invest only 02.5% of what they put into other Internet marketing channels? Someone is getting taken for a ride.
Innucopia is Amy McMorrow Hunter's website and blog. Innucopia means 'cornucopia of innovation.'
Wednesday, November 01, 2006
Amazing statistics reported in the DMA's latest research report on direct marketing (available here), in the words of Bill McCloskey, CEO of Email Data Source:
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