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Trends in Marketing ROI

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  Trends in Marketing Return-On-Investment

John WanamakerJohn Wanamaker reportedly once said "Half of my advertising dollars are wasted. I just don't know which half."

This is a classic challenge faced by all companies. Here are some recent findings which you should find interesting:

According to an October 2008 report from the Direct Marketing Association, "the return on investment from e-mail far surpasses other channels."  E-mail’s ROI in 2008 was $45.06 for every dollar spent on it, compared to $15.55 for non-catalog direct marketing, and $7.28 for catalog marketing. Surprisingly, email marketing only receives 0.4% of direct marketers' budgets.

This may be an area for you to be competitive in this troubled economy. If email marketing's ROI is clear, and others aren't investing heavily in it, now may be a good time to strike.

More interesting statistics come from MarketingSherpa's "Email in the Downturn: Looking Ahead to 2009."
  • 44% of B-to-B companies have either cut marketing budgets or a cut is planned.
  • The same applies to 51% of B-to-C companies, and a staggering 70% of large organizations.
  • For 2009, 69% of those companies surveyed will either spend "considerably more", "somewhat more", or "no real change" in ONLINE spending.
I'm sure you've heard the stories of companies that marketed aggressively during a downturn while their competitors hunkered down. More interesting stats:
  • Of the 1700+ companies surveyed, 83% are reducing radio/TV ads; 60% reducing print ads; 57% reducing event marketing; 52% reducing direct mail; and so on.
  • At the same time, 48% of those same companies will INCREASE emailing to house lists; 48% will increase spending on Web 2.0; and 27% will increase spending on paid search on Google, Yahoo!, etc.
Click here for a copy of MarketingSherpa's PowerPoint "Email in the Downturn: Looking Ahead to 2009."
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