Return on Investment – ROI for Internet and Email Marketing Forumla

ROI formula

Every time someone tells me [again] how email is about to be killed off by some trendy new communication tool; I just point them to the most recent analysis of return on investment – ROI for Internet and Email marketing.

According to the latest Power of Direct Economic Impact Study by the Direct Marketing Association; Internet marketing as a whole is forecast to overshadow Direct Mail for the first time next year with a projected $651.8 billion in sales compared to a projected $642.4 billion for Direct Mail. An expected milestone perhaps, but a milestone nonetheless.

What about Return on Investment – ROI for Email Marketing?

The return on investment (ROI) for email marketing continues to fade, but still dominates other Internet marketing investments. In 2006, email marketing enjoyed an average return on investment (ROI) of $52.23 for every dollar spent. This year, the average return on investment for email marketing fell (somewhat sharply) by $12 to $40.56 for every dollar spent. Still, great bang for your buck, isn’t it? I don’t know too many banks (or bookies) offering anything close to that.

Still, compared to to the return on investment (ROI) for search marketing of $22.24 per dollar spent; email marketing is still the MVP of the Internet Marketing League and returning Captain of the International Marketing All-Star Team.

I was actually surprised to see that the return on investment – ROI for mobile marketing was as low as $10.51 for each dollar spent. Considering the high delivery rates of mobile messaging, I thought it would be higher for some reason.

The return on investment (ROI) for social networking is s l o w l y raising year after year. In 2011, the return on investment (ROI) for social networking is $12.71 and in 2012 it is expected to increase only by $0.19 to $12.90 and only up another $0.50 to $13.43 by 2016.

I wonder how that humble long-range forecast for ROI will affect spending in social networking by Internet marketing departments? I guess they call it social for a reason. In fairness, it is hard to measure the influence of friends on purchasing decisions, so I don’t think it is as clear cut as these figures reveal for social networking.

So there you have it.

Email marketing still offers the best return on investment (ROI) value of Internet marketing.

In terms of ROI, email marketing is the craps or blackjack table of the Internet casino.

Return on Investment (ROI) for Email Marketing is like Blackjack of Internet Marketing

…and speaking of Casinos, Forbes provides a nice overview of the best bets for your money in a casino.

Interested? Start measuring your own ROI with our email marketing software. It’s a great investment.

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