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Email & Newsletter Marketing - Still Relevant?

Email and newsletter marketing is one of the most successful Internet marketing strategies ever. However, with the advent of SEO (search engine optimization), PPC, and social media marketing, you might wonder if it is still as effective as it used to be.

There are several new and existing internet-based businesses that have realized the relevance of email and newsletter marketing has gone down. So here's something to cheer you up - according to several studies, more than 76% of internet users and consumers prefer receiving permission-based advertising and marketing communications including newsletters and product mailers through email.

Email Marketing is a Must Have For E-Commerce

According to a research by Forrester Research Inc., e-commerce spending in the U.S in 2012 was $231 billion and is expected to hit around $262 billion in 2013. The research also indicates that e-commerce sales in the U.S were $225.5 billion in 2012, which is an increase of 15.8% ($194.7 billion) since 2011.

Do you know what has driven this high amount of e-commerce sales? Interestingly, email and newsletter marketing has played an important role in driving these numbers up.

A research was conducted by Epsilon Email Marketing Research Center in the US and UK e-commerce markets and the results were astonishing. The report states that "open and clicks" of promotional emails and newsletters have remained stable with the click-through averaging 5.1%. The report also states that there has been a 73% yearly growth in total number of triggered messages delivered. The report highlighted that the highest click rate is 18.5% and the concerned sector is consumer products followed by 14.7% in retail apparel.

These statistics hint at the fact that email and newsletter marketing is not dead but is still a vital marketing tool for business.

Email and Newsletter Marketing shows rising ROI

One of the important questions that most businesses ask is what is the return on investment in email and newsletter marketing? A report created by DMA (Direct Marketing Association) has revealed that the average ROI per $1 in ad spending for commercial email was $38 in 2010 and is expected to be around $42 by 2014.

One of the aspects that drive high ROI for email marketing is the fact that the cost of sending bulk email is much cheaper as compared to other online advertising options like PPC.

In Consumers Mailbox

Another benefit of promotional emails and product newsletters or mailers is that they can be directly mailed to an existing customer or a potential consumer. It is considered a more personal mode of internet marketing as compared to banners and product websites.

Additional benefits of email and newsletter marketing include:

  • Global reach: You can send emails to users anywhere across the world Fast response: As compared to direct mail, the response time is shorter.
  • Anywhere Access: Newsletters and promotional emails can be accessed from smart mobile phones as well, as a result, shortening the response time even more and further increasing the ROI.
  • Targeted Audience: Email and newsletter marketing can be targeted based on various factors like age, geographical location, gender, income etc.

With these advantages email marketing is still one of most important business marketing tools and should remain relevant for quite some time.

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