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ROI and measurability driving email marketing growth in UK - report

29th Oct 2010
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The UK email marketing sector will grow by 15% to £336 million this year because it provides a high return on investment at a relatively low cost and is more measurable than other forms of marketing activity.

These are the key findings of a report entitled ‘Email Marketing Platform Buyer’s Guide 2010’ published by digital consultancy Econsultancy. The study also revealed that marketers were becoming more strategic in their approach to the channel. Rather than use it simply as a customer acquisition tool, they were now starting to employ it as a means of creating long-term relationships in order to increase sales and boost retention rates.

Econsultancy’s research manager Aliya Zaidi said: "Another trend is the increased understanding of the need to integrate email with other types of data. Within a multichannel world, email is becoming a more strategic tool for building customer relationships."

She added that the rise of social media had not had a negative impact on the email marketing sector because the two were, in fact, complementary.

"The ability to distribute and share content is built into email and this supports social media activity. Many email service providers are now offering services and technology related to social media," Zaidi said.

The firm’s evaluation of the size of the market included the money spent on email service providers, agency services and the cost of internal staff resources relating directly to email marketing.

An earlier survey undertaken by Econsultancy in conjunction with email marketing agency Adestra found that the average company now spends 17% of its digital marketing budget on email marketing, up from 14% in 2009. Just over half spend at least £10,000 per year on the channel.

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