Research findings Fiona Robson, managing director, Rocketseed Anthony Wilkey, strategic client director, Emailvision

#dmaemail

17th May 2012

• Fiona Robson

– Managing Director

– DMA Email Council

– DMA Email Benchmarking Hub

• Anthony Wilkey

– Product Marketing Manager

– DMA Email Benchmarking Hub

DMA Benchmarking Hub

2011: a great year for email

Email in 2011

Report Overview

• Strategic importance of email

• Email marketing budgets

• Barriers to success

• ROI – revenue and relationship

• 2011 key metrics

• Concerns

• Contact strategies

• Segmentation

Strategic value of email

Importance of email

• 90.9%: “Very Important” or “Important”

• Significant increase YOY for B2B

• Recognition for direct response but also longer-term impacts of email marketing

• 62% of marketers satisfied with their email marketing programme

Email:% of marketing budget

Email expenditure

• <10% of total spend for almost half of respondents

• 30% or more of marketing budget for 1/3 of respondents

• 63% expect to increase expenditure

• Increased spend linked with plans for advanced email marketing tactics

• Expected increase in spend in 2011 did not happen

• Is email so cost effective that businesses think investment is not needed?

Barriers to success

Barriers to success

• Internal Resources are the biggest barrier

• In 2010 Budget was top issue (37% vs 26%)

• Lack of data is less of a concern (28% vs 22%)

• In B2B responsibility for email marketing more likely with Senior Staff

• 15% cite lack of involvement of senior staff as a barrier

Email:contribution to revenue

The value of email

• Reported Revenues from email marketing are “disproportionately large”

• For almost half – drives 30%+ of revenue

• 2011 sees an increase in those who can measure revenue from email (61% vs 55%)

– 79% B2C vs 44% B2B

• Increased focus on revenue vs tracking

• Increased awareness of longer-term, brand, relationship impacts

ROI of Email in the Marketing Mix

ROI in the Marketing Mix

• Email marketing is rated as best marketing tactic for ROI

• Newsletters & limited time offers contribute the most to revenue

• Findings concur with other recent surveys: – DMA US estimated Email Marketing’s ROI at

$40.56 for each $1

Relationship in the marketing mix

Relationship in the Marketing Mix• Email marketing is the clear winner, cited by

72% of respondents

• This is exactly double those citing “social networking sites”

• Opens up new value possibilities beyond direct response

• Email as a vehicle for both distributing and creating content

• Complementary channel to social media, requiring an integrated approach

Performance Trends

Performance Outlook

Performance

• Positive trends

• Optimistic outlook

• Stay focussed

• Importance of testing

Satisfaction

Primary Concerns

Satisfaction and Concerns

• Broadly optimistic outlook

• Significant drop in overall concern

• Key challenges– effectively engaging senior management

– highlighting the true value of email

– data and resource management

Contact Frequency

Contact Frequency

Contact Frequency

• Move beyond deliverability

• Mailing volumes remain low

• Focus on contact strategy

• Testing opportunity

Segmentation

Segmentation

• Definition of segmentation changing

• Progress towards personalisation

• Growth of multi-channel

• Emergence of mobile marketing

Conclusions

• Overall email trends and sentiment are positive and improving

• New channels present an opportunity• Investment in email remains relatively

low• Critical to highlight the value of email to

secure additional resources and optimise programmes