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Article

Title: E-mail Tops in ROI

Author: Magill, Ken Article Type: Product Analysis
Source: DIRECT, v18 n13 p10(1) Publication Date: Nov 2006
  ISSN: 1046-4174
URL of Publication: http://www.directmag.com

Email is the most effective marketing tool as it brings the highest return of investment compared to other channels. The study conducted by the Direct Marketing Association (DMA) shows that email delivered $57.25 for every dollar invested on it in 2005. Print catalog returned $7.09, while web-based but non-email marketing resulted in ROI of $22.52. This takes email to the top of the list of marketing communication tools. Investment in email is expected to increase by 24.4 percent in 2006, up from $300 million in 2005. The money invested into print catalogs is higher at $18.9 billion in 2005, and should increase to $20 billion in 2006. The downside, however, is that the ROI from email is projected to decline to $51.45 in 2006 and that figure would continue to fall in the coming years. This should warn marketers not to totally focus on email and do away with print catalog or other media they use. ROI from other Internet-related marketing is also expected to drop, whereas print catalogs ROI is showing improvements. U.S. sales from commercial email efforts are pegged at $16.5 billion in 2005, and should increase to $18.5 billion in 2006. Commercial emails are those that have been created to immediately sell products or services, but they do not include emails considered as spam according to the federal Can Spam Act.

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