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Email ROI Steadily Dropping

Posted on 10.28.2007
Accoding to new estimates by the Direct Marketing Association, email return on investment (ROI) is down and will continue to drop. In 2005, email marketing returned $57.25 for every dollar spent. Last year that figure dropped to $51.58 and is predicted to fall this year to $48.56 and to $45.65 in 2008.

These figures can be explained in some part due to more companies sending non-revenue generating emails, such as order confirmations, which may help in the long run. As users become more accustomed to email marketing tactics, the key to success will lie in opt-in messages, transparency and targeting. As Richard Gibson, chair of benchmarking hub at the DMA Email Marketing Council explains, "Relevancy, segmentation, targeting and analysis are most definitely in the direction where email marketing has been headed for some time. Many suppliers or ESPs - email service providers - have the ability to work with the marketing function within a small company and show how their tools can be used effectively to increase response."
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