Email marketing is well alive and brings in more revenue than most types of marketing. There are, of course, the naysayers that call for the abolishment of email marketing, but those are people who have never truly tried it.
In certain industries, email marketing is still the best way to achieve excellent ROI. For example, there is a study that says that email marketing has a 122% ROI compared to the 29% ROI of social media ads, 25% for direct mail, and 24% for paid search.
122% compared to the rest is pretty impressive, if we take into consideration that people use social media and paid searches more than email marketing.
There are, of course, other case studies for ROI from email marketing. These studies don’t go below the 70% mark, and some even reach numbers of up to 4,000%! But what does this actually tells us? It tells us that even the lowest case study has a bigger ROI than other medians. Based on this, we can safely assume that you should invest more in email marketing, according to this website.
How Much Should You Invest In Email Marketing?
We are going to base our investment points on examples from large companies that heavily invest in this way of advertisement.
According to thechecker.co, an eCommerce company with an 80% ROI has spent just around 13% of its annual budget on email marketing. That 13 % achieved an 80% return of their investment, which accounted for 30% of their total sales.
Around 70% of businesses worldwide invest money in email marketing. And although the sums vary from company to company, nearly every recorded statistic results in a larger ROI than 80%.
Out of all the companies that participate in email marketing, 45% send daily emails while 55% send weekly.
Netflix, the most popular movie and TV show streaming platform in the world, invests a lot in email marketing. Since every user signs up with their email, Netflix asks them whether or not they want to receive special offers. Netflix has reported their email campaigns to be hugely successful, by giving inactive users special offers to come back for another month.
So based on all this, what are the deciding factors that determine how much you should invest in email marketing?
Your annual revenue should be the starting point. Nearly 84% of all businesses participating in email marketing invest between 1% and 20% of their total revenue.
You can also base your calculations on the total percentage of the overall revenue generated online. As email marketing is online it could be wise to spend from the revenue generated in online sales.
Other factors such as your industry, the product/service you’re selling, and your overall digital marketing goals should also be put into the mix. If you don’t really have any special plans to grow digitally, then you shouldn’t really invest that much money.
On average, mid-sized businesses spend anything between $50 and $1,500 annually on email marketing. Furthermore, active mid-sized businesses that employ an agency spend between $200 and $500 every month for their email marketing campaigns.
Regardless of how much you’re planning to spend, you should first come up with an effective strategy that will work in accordance with your goals.