Email marketers need to focus more dynamic content and personalization as volumes increase reports the latest National Email Benchmarking Survey from the British Direct Marketing Association.
According to the DMA Email Marketing Council the number of emails sent in Quarter three 2006 stands at over one billion – a year on year increase of 37 per cent.
The report demonstrates that marketers are increasingly looking to individualization – dynamic content and personalization - to generate better open, click-through and conversion rates.
Richard Gibson, chair of the DMA Email Marketing Council’s Benchmarking Hub, said, “Email marketing is without a doubt becoming more sophisticated.
“The increased focus on dynamic content moves email marketing away from simple messaging without segmentation into messages which can vary depending on data held at an individual level.”
Enhanced deliverability is also apparent. ESPs are reporting some very high delivery rates with three quarters of those surveyed achieving delivery rates of over 91 per cent.
This falls in line with the drop in ‘fail rates’ (the non-delivered mail divided by number of emails sent) from 9 per cent and 7 per cent for acquisition and retention to around 3 per cent for both.
Gibson added, “With inbox delivery still proving to be one of the biggest challenges for ESPs, this is an area where they can demonstrate real business benefit.
“As more and more clients adopt some of the deliverability best practice standards such as sender ID, domain key registration and use of spam-checking tools, we should see deliverability rates hold, or maybe improve in the next few reports. The rewards will be significant for those who get this right.”
Return on investment continues to be the biggest driver of email marketing activity. However, 40 per cent view the combination of its speed, ROI, value for money and it being the preferred channel of customers as the reason for email’s growth.
While the DMA National Client Email Marketing Survey (conducted in Quarter 2, 2006) illustrates agreement on the fact the email marketing is set to grow, ESPs and clients are of a different opinion as to where the budget is coming from.
Clients report that budget for email marketing is newly created while ESPs believe that the increase in email spend comes from direct mail.
Gibson concluded, “Despite ESP perception that email is increasing at the expense of other channels, it is clear from other industry research that this isn’t necessarily the case.
“Email marketing in isolation can be very effective but the trend seems to be towards increasingly integrated campaigns to maximize the effectiveness of each channel used.”