Marketing and ROI

25 July 2007

eMarketer reports that direct mail and e-mail had the highest return on investment of any target marketing method in 2006, according to Harte-Hanks’ “Target Marketing Priorities Analysis: 2007 Key Trends” study.

More than 70% of B2C marketers said direct mail brought them a high ROI, while more than 45% said e-mail did (respondents were allowed multiple responses).

A Pitney-Bowes study cited in an April 2007 press release also found mail and e-mail effective for communicating new product information, which could be construed as an indicator of high ROI.

eMarketer Senior Analyst David Hallerman said, “Trackable direct response marketing methods typically have a higher ROI just because of that direct step, when it works, from marketing to conversion.”

“On the other hand, newspaper/print ads and TV ads show much lower ROI, not only because they’re more difficult to track but also because the primary intent is typically different… the brand’s mindshare, not the direct conversion.”

eMarketer Senior Analyst Lisa E. Phillips added, “It depends on the product being marketed. Direct mail works very well for financial services, especially credit cards, investments and insurance. CPG companies do well if they send coupons.”

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