Email marketing hits record high

woman_on_computerEmail marketing volumes are continuing to smash all records as companies move away from using the technique as a cheap way of promoting seasonal offers to wake up to its ROI and effectiveness in boosting income.
According to the “DMA’s H2 2012 National email benchmarking” report, that overall volumes across the second half of 2012 were up 25% compared to the same period in the previous year.
But while volumes have risen for the third successive year, the report’s authors identify a new set of emerging trends that have accelerated growth.
In Q1 2012 nearly half (47%) of email service providers attributed growth to seasonality, compared to just one in five (20%) who cited effectiveness/ROI as the main driver. However, by Q4 2012 less than one in five (17%) cited seasonality but more than two in five (42%) attributed growth to effectiveness / ROI.
Dela Quist, chief executive of Alchemy Worx, which sponsored the report, the move shows an ever-growing sophistication within email marketing.
He said: “The continued growth demonstrates a substantial and established trend that shows no signs of slowing down, an ever-increasing dependence on email. The rise in revenues generated from email has been driven by a number of factors, including higher send frequencies, growing databases and more complex segmentation.
“The report shows that increased email volumes need not mean lower rates of engagement and marketers are becoming increasingly adept at generating more revenue without alienating the customers on their database.”
In other findings, the report also revealed that ESPs are managing significantly more email addresses, with list sizes increasing by 36% from Q1 to Q4 2012. Average monthly contact rates from brands to email addresses on their contact lists rose by 7% in H2 2012 from 2.1 in H2 2011 to 2.2 emails per person. Average unique open rates in Q4 2012 rose 14% compared to open rates in Q1 2012.

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