Though the money marketers spend on it is a pittance compared with other channels, e-mail delivers the highest return on investment by a wide margin, according to the Direct Marketing Association.
E-mail returned a whopping $57.25 for every dollar spent on it in 2005, the DMA reported in its Power of Direct economic impact study released last month. In contrast, print catalogs generated $7.09 and non-e-mail Internet marketing produced $22.52.
“What this says is that e-mail is a highly profitable means of communicating, much more so than a catalog or any other form of communicating with your customers,” said Jay Schwedelson, corporate vice president of list firm Worldata.
What’s more, marketers are expected to sink significantly more into e-mail next year. However, the channel’s share of the average CMO’s budget is still barely a rounding error.
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