Email marketing spend on the up

email marketing spend on the up emailMore than half of UK client marketers are planning to increase their 2014 email expenditure after ROI for the channel reached record levels in 2013, according to a new DMA study.
Of a panel of 128 senior B2B and B2C client-side email marketers interviewed for the DMA’s annual National Client Email Report, 56% expect to see increased marketing budget allocation to email in 2014.
Optimism for the channel’s outlook this year has been underpinned by a 16% leap in average ROI from £21.48 in 2012 to nearly £25 (£24.93) in 2013 for every £1 spent on email. This rises to an average of £30.52 for B2C.
The report’s authors have attributed a heightened focus on better-targeted campaigns to the increase. There has been a strong emphasis on list segmentation, as the percentage of marketers segmenting campaigns for six+ audiences rose from 29% in 2011 to 38% in 2013.
The number of marketers not using segmentation techniques dropped from 19% in 2011 to 11% in 2013. Segmented emails accounted for 60% of all email revenue in 2013, compared to 55% in 2012. As a result the percentage of revenue marketers attribute to targeted email has also risen from 30% of total revenue in 2012 to 39% in 2013.
Increased social activity has also made a big impact on email ROI as it has increased levels of brand engagement with consumers and helped to drive a rise in the acquisition of new email addresses.
James Bunting, chair of the DMA Email Marketing Council’s benchmarking hub, commented: “Email will be grabbing the headlines once again, as it has delivered a 16% increase in ROI in 2013. From a marketer’s point of view automation of emails is not only highly efficient but also it gives them the time to actually ‘market’ when it comes to email. I’m sure we’ll see this trend continuing into 2014.”
In other findings, the report highlights a shift in emphasis of the business objectives of email. Retention having been the primary focus of email campaigns in 2012, declined from 78% to 62% in 2013. Instead 72% of marketers cited engagement to be the driving force behind email marketing programmes in 2013, a 2% increase since 2012.
B2B marketers also found regular newsletters to be the most prevalent type of message (58%), closely followed by welcome messages (40%) and thank you messages (33%). Breaking news alerts (20%), first purchase offers (20%) and purchase confirmation emails (20%) were the most widespread type of email message among B2C marketers. The frequency of contact made with individual email addresses declined in 2013. Contacts received no more than three emails per month, while four emails were sent to each contact in 2012.

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