The amount of research supporting the effectiveness of online marketing is staggering yet many business owners are still unconvinced or just inadequately informed. If you are seriously looking for reasons to justify spending marketing dollars online, here are a few facts and trends to ponder:
Although most marketers allocate minuscule amounts of their budgets to their email efforts, the channel continues to deliver substantial returns on every dollar spent. According to the Direct Marketing Association, marketers spent $500 million on email in 2007 to capture an astronomical $23 billion in sales – yes, $23 billion in sales; that's not a typo.
The DMA forecasts:
- During 2008 marketers will spend $600 million on email to drive $27 billion in sales; and
- Email delivered $48.56 in sales for every dollar spent in 2007. A substantial return is also predicted for 2008; $45.65 for every dollar spent. More from the DMA is available here.)
The results are in. The success of online marketing is supported by reliable research reports and marketing pros have taken notice. In McKinsey's July 2007 global survey of marketers, more respondents used email than any other form of digital advertising. Some people still don't understand the value but those that do are moving online across the spectrum of marketing activities, from building awareness to after-sales service. They see online tools as an important and effective component of their marketing strategies.
McKinsey survey of marketing executives reports that: Continue reading