The rise of cross-channel campaigns is sparking major growth in the UK email marketing industry, which witnessed a 15.5% surge in 2011 to be worth £388m, according to a new study.
The valuation, featured in Econsultancy’s Email Marketing Platforms Buyer’s Guide 2012, includes revenue earned by email service providers (ESPs), money spent on agency services (in addition to ESP revenues), and the cost of internal staff resources relating specifically to email.
According to the report, there are no signs that increased use of social media is sounding the death knell for email, as the two channels continue to reinforce each other. In fact, it shows that email is seen as an essential element of a wider campaign.
Although inbox functionality and user behaviour are evolving, email continues to grow because it is cost-effective, inherently measurable and delivers high return-on-investment. With efforts to reduce spam, sending marketing emails is seen as less intrusive than other channels, given that consumers are used to communicating with companies via email.
Econsultancy research manager Aliya Zaidi said: “There have been plenty of exciting new developments in the email world in the last year, which are driving growth in the industry. The demand for increased relevance will be the key battleground for email, due to the rise of the priority inbox and grey-mail filters.
“The growth of social media and greater volume of emails means companies can simply no longer afford to ignore email tactics that will increase the effectiveness of their campaigns, including personalisation, targeting, and segmentation.”
The research also highlighted the importance of adapting email for different devices, given that consumers increasingly check their emails while on the move, using mobile and tablet devices.
Zaidi added: “The rise of new devices present both opportunities and challenges for email marketers. On one hand, email is now everywhere; marketers have the ability to reach customers anywhere, at any time, and be highly relevant and targeted.
“However, companies need to adapt their messages to optimise the mobile and touchscreen experience, which only a minority of marketers are currently doing.”
