Email Continues to Deliver a Robust Return on Investment
If companies are in any doubt about where to target their marketing budget, the Direct Marketing Association's recently-released report "The Power of Direct Marketing" holds the answer. In 2011, direct marketing sales will grow by 7.1 percent, outstripping overall U.S. sales which will grow at 5.1 percent.
Email marketing continues to surpass every other channel, with a return on investment of $40.56 for every dollar spent on it. In comparison, the DMA reports that the ROI from search is $22.24, internet display advertising is $19.72, mobile is $10.51, and catalogs is a paltry $7.30.
The DMA estimates that commercial email will drive $63.1 billion in sales in 2011, an increase of $5.3 billion over 2010. By 2012, sales driven by commercial email are expected to reach $67.8 billion, with growth to $82.2 billion predicted by 2016.
Sales generated by non-email internet marketing continue to rise. In 2011, sales driven by search, social networking, and other forms of internet advertising are expected to reach $576 billion, compared to $630.5 billion sales from direct mail, according to the DMA. By 2012, internet marketing is expected to generate $651.8 billion sales, compared to $642.4 billion from direct mail. The DMA predicts that this trend will continue, with the gap between internet marketing and direct mail continuing to grow in favor of the internet.
The bulk of internet sales are driven by search, with this channel driving $309.7 billion sales in 2011. However, the anticipated growth of mobile is worthy of note. Although the DMA report suggests that ROI from mobile is only $10.51 for every dollar spent in 2011, projections for the future look positive. In 2012, mobile is expected to return $11.37 for every dollar spent and by 2016 this figure is predicted to rise to $12.45, according to the DMA.