Email effectiveness ‘falling’

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Email has been a stalwart advertising method since the dawn of the internet, but a new study suggests its time could be waning.

According to data released by the US Direct Marketing Association, there are still good returns on investment provided by email marketing, but these are falling.

The figures show that by the end of 2007, some £244 million will have been spent by internet marketers on email – driving sales of £11.2 billion.

That equates to around £36 for every £1 spent, which while still impressive reflects a drop from £38 for each £1 in 2006 and £42 in 2005.

Predictions from the DMA suggest that this trend will continue next year, with a spend of £288 million pushing nearly £13 billion – equal to around £34 for every £1 spent.

Despite this decline in returns from email marketing, the US DMA said it could stand up against most other Web Marketing channels as the average non-email online return on investment was found to be £15.30 for every pound spent in 2007.

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