What Is Email Marketing?

Let’s think of email marketing as a strategic use of emails to reach a specific audience. You can use email marketing to build awareness, drive customer loyalty, and achieve various business objectives. 

It’s more than just a digital postman. It’s a brand-building maestro. According to Statista research, in the year 2020, the worldwide email marketing market held a valuation of 7.5 billion U.S. dollars, and estimations indicate a projected surge to 17.9 billion by 2027. The anticipated compound annual growth rate (CAGR) for this timeframe is forecasted to reach 13.3 percent. 

Interested in email marketing statistics? Check the 2024 research: Email Marketing Statistics [2024]

Why use email marketing?

Digital communication is built on email marketing. If you want to engage your target audience and build a lasting relationship with your customers, email marketing should definitely be in your toolkit. And your email campaigns are a  personalized and non-intrusive channel to deliver content, send out promotion alerts, and share other valuable information.

Here is why email marketing matters:

• It’s a cost-effective way to reach a large audience for a business of any size. 
• You get to talk to customers on a global scale, breaking through borders and time zones.
• It brings you valuable marketing insights in the form of open rates, click-through rates, and conversion rates.
• As email campaigns are pesonalized by nature and deliver tailored content, they let you build brand loyalty.
• With email automation tools, you can create drip campaigns, set up automated responses, and personalized workflows. This can help you save time while keeping interactions with subscribers relevant.
• When done right, email campaigns often result in high conversion rates. The two main factors that lead to high conversion are compelling calls-to-action (CTA) and personalized content.

To learn more about the benefits of email marketing check out this article: Top 7 Benefits of Email Marketing.

Email marketing is a powerful tool. But it’s not without downsides. Here’s what you should be on the lookout for when designing your email campaign:

Spam risk: You will be dealing with a constant challenge of emails being marked as spam. This can happen if your emails are not properly optimized or if your readers think that your content is irrelevant or excessive.

Overwhelmed subscribers: If you send out too many emails, your subscribers may develop email fatigue. They may become disinterested, unsubscribe, or mark content as spam.

Technical challenges: Email campaigns may run into technical difficulties like formatting errors, inconsistent display across email clients, or possible deliverability concerns.

Data privacy concerns: We live in the era of heightened privacy concerns. Mishandling or misusing customer data  can lead to legal and reputational issues. Compliance with data protection laws like GDPR is crucial.

Limited visual appeal: Emails often have less visual appeal than other marketing platforms. Your capacity to develop highly interactive or visually captivating information may be hampered by design constraints.

Dependency on user behavior: User actions, such as opening emails and clicking links, play a very important role in the success of email marketing efforts. Deliverability might be impacted by things like email client settings and spam filters.

Changing algorithms: Email platforms and providers may alter algorithms, affecting the visibility and delivery of emails. Keeping an eye on industry changes is crucial to adapting strategies accordingly.

To avoid the most common email marketing mistakes, check out this article: 7 Crucial Email Marketing Mistakes You Must Avoid in 2024

How Much Does Email Marketing Cost?

The cost of email marketing can vary widely. It depends on factors such as the size of your business, the complexity of campaigns, and the email marketing platform you choose. 

Generally, businesses can expect to pay anywhere from $9 to $1,000 or more per month for email marketing services. 

• Entry-level plans for small businesses typically start at around $9 to $20 per month, providing basic features and support. 
• For mid-sized businesses with more extensive needs, plans can range from $50 to $300 per month. 
• Larger companies  with advanced automation, segmentation, and analytics requirements may invest $500 to $1,000 or more monthly. 

Additionally, costs can increase as your email list grows – a lot of providers set up their pricing plans based on the number of subscribers.

Keep in mind that the prices we mention here are just for general overview. If you are considering email marketing, you will need to carefully evaluate your needs as a business and then select a pricing plan that best matches your goals and budget

According to a 2021 survey, the average return on investment (ROI) for email marketing was reported to be around $42 for every $1 spent, underlining its cost-effectiveness and potential for high returns.

Email Marketing Types

Here are the key types of email marketing:

Take the time to explore each email marketing type. By using them strategically, you may be able to better tailor your campaign to your goals: driving sales, building relationships, or informing your audience.

Related article: Types of Email Marketing Explained [2024]

The Basic Principles of Email Marketing

Here are several effective tips to help you maximize your email marketing campaign:

Stay human: Email marketing is popular—which also means it is competitive. Use email to speak directly to your readers. Use their name, and let them see the human side of your brand. 

Use engaging titles, but don’t bait and switch: As you probably already know, using interesting subject titles is essential for higher open rates. With that said, your subject titles should be on topic and not spammy. If your readers feel duped, they’re likely to unsubscribe or mark your message as spam – and this will impact deliverability.  

Keep messages short: Most people read emails on their phones. So, your copy should be brief and to the point. If you have more to share, add a link to a blog post or landing page.

Include CTAs at the top and bottom: On landing pages, CTAs are always included above the fold—use the same strategy with email by including strong CTAs after the first paragraph and again at the end. 

Ask permission and deliver on your promises: Never buy email lists—that is illegal in most cases and won’t deliver ROI. If you offer a deal or great content, make sure to deliver high-quality content or offers. Using lead magnets is a win-win: you get contact info and subscribers get cool freebies, naturally growing your email list with interested audience.

Check out this article for more details: How to Do Email Marketing in 2024: A Step-by-Step Guide

Email Marketing Laws and Regulations

Email marketing is regulated by several laws. They protect consumer privacy and ensure fair and ethical practices.

CAN-SPAM Act (Controlling the Assault of Non-Solicited Pornography and Marketing):

Enforced by the Federal Trade Commission (FTC) in the United States.

• Requires commercial emails to include accurate header information, a clear opt-out mechanism, and the sender’s physical address.
• Prohibits deceptive subject lines and the use of false or misleading information.

GDPR (General Data Protection Regulation):

• Enforced by the European Union (EU) and applies to businesses handling the personal data of EU citizens.
• Requires explicit consent for collecting and processing personal data.
• Gives individuals the right to access, correct, or delete their personal information.
• Imposes strict penalties for non-compliance.

CASL (Canadian Anti-Spam Legislation):

• Enforced by the Canadian Radio-television and Telecommunications Commission (CRTC).
• Requires consent for sending commercial electronic messages (CEMs).
• Mandates clear identification of the sender and an easy opt-out mechanism.

Australia’s Spam Act:

• Enforced by the Australian Communications and Media Authority (ACMA).
• Requires consent for sending commercial electronic messages.
• Mandates accurate sender information and a visible unsubscribe option.

Privacy and Electronic Communications Regulations (PECR):

• Applies in the United Kingdom and is separate from GDPR.
• Requires consent for using cookies and similar technologies.
• Regulates electronic marketing, including email marketing, with rules on consent and opt-out mechanisms.

California Consumer Privacy Act (CCPA):

• Applies to businesses collecting personal information from California residents.
• Gives consumers the right to know what personal information is collected and the right to opt-out of the sale of their information.

So, how do you ensure compliance with the regulations in your country? Here’s a quick roadmap:

• Obtain explicit consent before sending commercial emails.
• Provide a clear and easy-to-use opt-out mechanism.
• Include accurate sender information and a physical address.
• Regularly update and maintain their email lists to reflect user preferences.

If you choose to not comply with these regulations, you may end up paying heavy fines and damaging your business’s reputation. This is why it’s important to keep yourself informed and adjust your practices to align with the related regulations. 

Be aware of the fact that in February 2024 Google and Yahoo set new standards for sending bulk emails: Google & Yahoo’s Updated Guidelines for Bulk Email Campaigns [February, 2024]

To Sum Up

Email marketing is a strategic use of email to reach YOUR audience. If you do it correctly, it can be a great way to make more people aware of your brand and help you build a community around your product or service.

Email marketing is a quickly growing market, expected to increase from a valuation of $7.5 billion in 2020 to $17.9 billion by 2027. Keep up with the current trends!

There are different types of email marketing — each serving a specific purpose. Find what suits your goals and use it wisely.

Be aware of and fully comply with the data protection regulations in your country.