Hi! Thanks for the question.
It seems that based on trends and studies, email marketing is
contributing more to the bottom line than direct mail.
Email marketing costs ten percent of traditional direct mail
campaigns. According to GartnerG2, email campaigns cost an average of
$5 - $7 per thousand compared to $500 - $700 to reach the same number
of people through traditional mail
A Forrester Research survey showed that 46% of recipients read email
Forty percent of email marketing campaigns achieve a conversion rate
between one to five percent, more than double the effectiveness of
traditional direct mail campaigns. Eighty-three percent of post-sale,
targeted emails elicit an action on the part of the recipient, ranging
from additional purchases to subscribing to a related newsletter.
Email Marketing Quick Stats and Facts
Passaic Parc's Robert Rosenthal says on average the email ROI was
nearly four times higher than direct mail returns.
He notes direct mail lists generally have better selectivity, but
email list selectivity improves every month. Email response rates may
be dropping, but response rates are dropping in other media, too. He
attributes part of the success of the email campaigns to treating
email as a conceptual medium, not merely sending "text mail and
pictures to death.
Email or Direct Mail: Which Has Better ROI?
The high cost of direct mail and the broad-based nature of
traditional media such as TV and radio ads have forced marketers to
focus on customer acquisition, according to Forrester. E-mail,
however, changes the economics of the marketing equation by
eliminating postage, paper, and printing costs that account for 60
percent of direct mail's response. The low cost of e-mail means that
promoting lower-cost items and communicating with less frequent buyers
can be profitable.
Let the E-Mail Marketing Onslaught Begin
Of study respondents, 76% reported they are planning to increase
their email marketing volume in 2003, while 12% reported they will
decrease outbound email volume (see Figure 3). This indicates a strong
expectation among companies conducting email marketing campaigns of a
steady increase in the number of email subscribers, customers, online
members and readers they will reach though 2003.
Email Marketing Trends 2003 A study by Arial Software
2003 "direct mail" "email marketing" response rate
I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
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Google Answers Researcher
Clarification of Answer by
08 Sep 2003 16:34 PDT
Hi again jpron-ga!
It seems that online marketing does indeed make more money for
companies than direct mail.
Online marketing does not only have a high clickthrough rate but has
higher conversion rates as well.
"Compared to traditional direct mail campaigns, the results of e-mail
campaigns offer a very compelling contrast. A successful targeted
e-mail campaign will, in most cases, generate conversion rates in the
high single digits (8-9%); whereas with direct mail, marketers are
doing cartwheels if they achieve a 1-2% conversion. What's more,
e-mail campaigns are much less expensive to execute, ultimately
resulting in an exponentially more efficient ROI."
"ROI: Making the Digital Space Work Harder and Smarter"
Online marketing using "search Engine Optimization" contribute more to
Conversion rate (promotion recipient to sale)
"Search Engine Optimization" = 3.9%
Direct Mail = 1.0 to 2.0%
"Search Engine Marketing: Can You Afford Not To?"
"Since deploying the first e-mail campaign two years ago, the company
has learned that conducting one monthly e-mail campaign costs less
than four direct-mail campaigns every year and is more effective,
because the frequency of communication with e-mail grew four times
greater than with direct-mail pieces. E-mail also has enabled the
collection of customers' mailing addresses, which Binford says always
had posed a challenge for the shoe chain previously. "Our e-mail
campaign was an opportunity to prompt the customer to update her
information," she says."
"Sales also jumped, and response rates to in-store campaigns climbed
to 50% to 70%. Nine West measures campaign results by monitoring
click-through rates, looking at purchase conversion and examining open
rates. The company found that click-through rates totaled 18% during
the first six months of deployment, and Web sales saw a 20% to 40%
rise. Since spring 2001, the Web site has received a steady 28% to 30%
click-through rate. Prospecting campaigns also have met with positive
results. A recent one generated the highest click-through rate the
store has ever received, a huge purchase conversion and many e-mail
signups. "Our e-mails are seeing four and a half times the
click-through than the industry standard," Binford adds."
"Targeted e-mail messaging is sure fit for Nine West"
I hope that the clarification enhances my original answer.