Subscribe to industry newsletters

Advertise on Bizcommunity

Manufacturing Indaba 2018

Email marketing continues to drive the best ROI in 2013

According to the UK's DMA Email Marketing Council's 2013 Report, leading marketers are optimistic about email marketing budgets, with more than half saying that they were "confident that expenditure on email marketing will increase this year".
The council published ROI figures for the first time, with respondents noticing an average ROI of £21.48 (R301.46) for every £1 pound spent in 2012. Email marketing's performance is in direct relation to its ever-improving, superior techniques, which defy the old-fashioned notion of 'one size fits all' but rather delivers targeted messages to the customer.

Chair of DMA Email Marketing Council's Email Benchmarking Hub and Chief Executive at Alchemy Worx, said, "The report characterises 2012 as the year where email has defied market trends and carried the load in terms of delivering revenue. This is equally true for our clients, who closed 2012 up on budgets and targets for email but down in other channels. The result of these successes, as the report reveals, is that marketers will be investing even more effort in email in 2013."

There is always room for improvement, however. Nearly 90% of businesses said email marketing was 'very important' or 'important', and yet the DMA also reports that over a third of businesses are unable to calculate ROI from email marketing.

A lack of internal resources (54%) and budget (38%) were also a part of the main constraints which prevent companies from achieving marketing goals.

Despite the limitations, budget allocations for email marketing increased in 2012 by 15%, with over half of marketers expecting another increase in 2013. This is due to a third of the respondents accounting email marketing for 50% - or more - of all digital business revenue.

In addition, eConsultancy's marketing budget report shows that 63% of marketers increased their budget in 2012, with 31% remaining the same and just 6% who said that they would decrease budget.

Why increase budget in 2013? Some stats on email's contribution to digital revenue:

Marketers are now using email for a variety of reasons, other than straightforward monetary objectives, such as engagement, brand awareness and acquirement. Online channels are being integrated with email to build relationships with customers as well as increase ROI.

Click and conversion rates are the goals which sit at the top of every marketers list and for this reason, there is an indication that marketing spend on habitual media will decrease and be placed on integrated email marketing.

These continued insights into email marketing are already winning senior brand managers over. In a report in 2012, Dela Quist, CEO of Alchemy Worx, commented, "While some marketers seem to be concerned about inbox overload, the average consumer is not. Savvy marketers know "inbox overload" is a myth and understand that when compared to search, there is very little competition in the consumer inbox. These insights into the positive way consumers view promotional email also explain why email is still the primary driver of commerce on the web."

Digital Fire's press office

Digital Fire
Digital Fire is an email marketing and digital media specialist based in Cape Town. Digital Fire specializes in full service opt-in email marketing, email data rental, email database management and digital media consultancy. We provide cutting edge digital marketing and advertising solutions for our clients in the South African marketplace and internationally in the United Kingdom, Europe and the United States.