Finding Better ROI with Email Marketing & Display Ads. Marketing has been a concept as old as our civilization. The 1960’s became a saturation point for markets since their size remained same. Which led to a need for a competition which gave birth to marketing as a concept. Return on investment or in short ROI is the total profit that you get when you invest in some business. In this post, we are discussing and comparing the ROI of email marketing and display ads. Before plunging into any solid stance let us clear ourselves with few details
Origin of Email Marketing?
In 1971, when Ray Tomlinson sent his first email, never did anyone think that it would become a day to day affair. Emails have revolutionized the way we communicate. With the advent of the internet, everybody who has access to it checks his/her mailbox at least once a day. Gary Thuerk, who was Marketing Manager at Digital Equipment Corp started the email ad revolution. When he was given the task of promoting the company’s T-series of VAX system. He used email as the way to spread information on the product to interested customers. Now, this modern trend, as well as necessity, has been easily exploited by the marketing people through email marketing. Email marketing means directly sending any commercial ad in the form of a message to a niche population. Who is likely to be interested in the ad. Email marketing can be used to target various goals like garnering better relationships with the customers, making new customers, building brand awareness, gaining the trust of your clients, introducing a new product in the market, etc.
There are Two Types of Email Marketing:
- Transaction Emails: This kind of email can be sent if the customer is involved in some transaction with the company. Transaction emails generally include order confirmation email, order status email, reorder email, etc.
- Direct Emails: These emails are sent by the company directly to a list of customers for promotional purpose.
Advantages: Email Marketing is a very popular way for companies to do marketing because of the following reasons:
- With direct email marketing, you could focus on sending emails to customers from specific geographies.
- Email ads are cost-efficient and thus most suitable for small business.
- An organization using email ads get to utilize information gathered from analyzing customer behavior and response from the customer.
- Email ads can convey a detailed review of the product, video links, pictures, product brochure, etc. in a single mail.
- You could buy email lists from different organizations and use them as per need.
What is Display Ad Marketing?
Display ads are advertisements that come on websites in the form of texts, images, short videos, audio and flash places ads on websites that are relevant to your selling. It’s often done by re-targeting i.e. when a user visits your site which then would set a cookie, and now you can target specific ads on them. The primary target audience is the site visitors. Google has brought in the accent of display ad revolution.
Advantages of Display Ads.
- Messages can be easily conveyed in few words.
- Display ads are useful for promoting products which are everyday necessities.
- Payment has to be done only if someone clicks the ad.
Comparison of Email Marketing Against Display Ads.
Returns via email marketing can be precisely tracked. While tracking returns of display ads can be a confusing process. Before investing hugely on multimedia or creative content, emails act as the best way to check the effectiveness of these ads. Statistics gathered by Hub stop say that there are almost zero chance of people to click on ads which keep flashing on their screen. It was found that 50% of the ads clicked were accidental in nature. When marketing emails became spams, companies started realizing the need for implementation of timely triggered emails. Rather than jam-packing users inbox with ads.
As recipients, power over controlling their inbox increased, advertising via emails became more precise. In the past few years, this ability to send messages across a network has evolved as the most cost-effective way of direct marketing. It has been found out that display and is more of a meddling menace. Especially when you are trying to read some important thing on a website and takes up space in the webpage.
However, customers have better control over marketing emails as they can be either sent to spam or deleted. Using paid search to get email lists have added power to email ads. You could now get email ids of people who are specifically looking for your product or similar products. A study by Smart insights found that a combination of both display ads and email ads could improve advertising reach by 13% compared with just using display ads and increase web traffic by a factor of 4.
According to Sismek, North America has the least number of digital ad clicks which clearly shows why email marketing is better in settings like the US. You could Email list USA making marketing easy with targeted email lists.
Display ads have become a weak branding strategy after people started recognizing an ad instantly. And they knowing the motive behind it while email marketing can give a more meaningful experience to customers without forcing anyone to look at their products. The old saying which tells “old is gold’ is applicable in marketing too. Email marketing still is the leader regarding the return of investment.
To conclude, both these marketing techniques are unique in its own ways, but at the end of the day email marketing comes out as the leader in terms of cost-effectiveness and user experience.