Firms Yet To Reap Big Benefits From Email Marketing
The increasing number of people using email for communication and various other activities is having a significant impact on the growth of the market for email marketing across the world and in the coming years, even though it sees organizations still have room for growth in their email targeting and marketing automation initiatives.
According to a new research report by Transparency Market Research (TMR), the worldwide market for email marketing is estimated to expand at a CAGR of 19.60% during the period from 2017 to 2025, rising from USD 4.5 billion in 2016 to US$22.16 bn by the end of the forecast period. [Read the full report here]
Software has surfaced as the key component in email marketing and is projected to remain so throughout the forecast period, owing to the increasing uptake of white label software, third-party standard software, and web-based application software across the world. The global market for email marketing demonstrates a fragmented and competitive due to the presence of a number of well-established players, namely, IBM, Microsoft Corp., Zoho Corp., Epsilon, and Responsys Inc., providing solution and services across various end-use industries. These companies, together, held just about 44% of the overall market in 2016.
The study said that most marketers are still using email as an advertising channel with a focus volume instead of quality. To take things to the next level, brands must put their customer’s needs and desires at the forefront of their email communications strategy. The goal is to create the ultimate customer experience in the inbox – one that generates the highest ROI.
A new research from GetResponse also shows a limited use of marketing automation attributed to budget constraints. The Email Marketing Excellence Report 2017, study suggests that rewards of email personalization have yet to be reaped by a majority of email marketers, with more than 50% of respondents indicating they do not incorporate any type of targeting or segmentation into their email campaigns. Only a fifth of email marketers polled by GetResponse use some form of rules-based personalization in their campaigns, such as dynamic content, while 29% of respondents use 2-5 customer data points to personalize campaigns. A majority of respondents also asserted that they do not proactively test their email marketing in any way.
Rising Awareness to Boost Adoption
According to a TMR analyst, the number of email users is constantly rising at a healthy pace and is expected to reach one-third of the global population by 2019, making emails the most productive medium for advertisement and marketing over the forecast period.
Apart from this, the growing awareness among people about the benefits of email marketing, such as it provides a comparatively higher RoI rate than any other form of digital marketing, will also reflect positively on its adoption in the near future. However, the dearth of niche marketing options and the rising concerns over privacy issues among consumers may hamper the growth of this market, stated the report.
The GetResponse study also mentioned that the coming years can be positive for email marketers, as the report showed 27% of email marketers test subject lines and 20% test alternative offers, but only 17% of marketers asserted that they continuously test and optimize their email marketing programs.
As per the study, small enterprises to report higher adoption of email marketing strategy and this is expected to surge over the forecast period, owing to the increasing application of convenient email marketing tool to target various groups of users for branding their products, solutions, and services. The small scale enterprises in the retail/ecommerce business are anticipated to contribute the most to the global market for email marketing in the near future, said the TMR report.
Not surprisingly, a group of email marketers selected email as the most effective digital marketing channel, according to GetResponse’s report. Yet, the results of the study suggest that email marketers might see even better performance by incorporating more data-driven strategies into their campaigns. Perhaps that’s why the majority of email marketers, especially in the SMB segment will plan to increase their email budgets inthe next 5 years.
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