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Email: The Highest ROI Of Any Marketing Channel
Once again, commercial email marketing reigns supreme as the best channel for marketers. According to this year’s Direct Marketing Association’s Power of Direct economic impact study, email returns higher ROI than search, display, social networking and mobile.
Email is bringing in Rs 30.56 for every rupee spent on it. This is compared to catalogs’ ROI of Rs 7.30, search’s return of Rs 22.24, Internet display advertising’s return of Rs 19.72 and mobile’s return of Rs 10.51.

The only bad news for email marketers is that email ROI is dropping off year to year, coming down from its high of Rs 45.23 in 2006 to Rs 39.62 in 2009, then down to its current Rs 30.56. And it’s estimated that it’ll continue downward to around Rs 30 in 2016.

Even so, it’ll still be a while before the rising channels overtake email. Social networking is currently at Rs 12.90, up from RS 12.71 last year. Mobile marketing ROI is also rising. From its current Rs 10.51 it is expected to rise to Rs 11.37 in 2012 and Rs 12.45 in 2016.

The experts expects digital channels to continue to increase their share of the marketing budget from 19% in 2011 to 21% in 2012. The total spend on digital marketing has many folds since 2006.

So why does email continue its dominance?
Email is the only channel where recipients raise their hand and request marketing content. Users give permission for marketers to contact them, and that relationship produces results. And Email is one on one conversation, when you are reading an Email you are only reading an Email, whereas a banner comes up when you are actually doing something else.

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