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SMEs Beginning to See the Potential of E-mail Marketing in 2011

According to the latest independent research, online advertising channels have failed to make a significant impact on the success of many small and medium size enterprises (SMEs) in the UK, with direct mail prevailing over e-mail marketing yet again. Despite having been largely ignored by SMEs during the past couple of years, however, email marketing is expected to flourish in 2011.

Additional research carried out by the Print Industries Market Information and Research Organisation PRIMIR revealed how telemarketing and direct (printed) mail are continuing to prove more popular than online modes of advertising, including e-mail marketing. PIMIRO's research was later bolstered by the Advertising Association, which confirmed the relative success of printed mail.

Although a substantial body of evidence suggests online advertising is failing to reward SMEs, many small and medium size companies are continuing to invest heavily in social media - again seemingly at the expense of e-mail marketing. Several weeks ago, Forrester Research announced that 72 per cent of SMEs in the UK intend to invest more heavily in social media marketing during 2011. However, this is despite further studies into the impact of social for small businesses showing the medium "does not dramatically increase" revenue potential, which is where e-mail marketing is set to make a comeback.

A survey compiled by Econsultancy suggested that more than 70 per cent of SMEs consider e-mail marketing campaigns to offer 'excellent' or 'really good' return on investment. Econsultancy's findings support those of the 2010 Annual Marketing and Media Survey by Datran Media, which identified e-mail marketing as the most powerful advertising medium among 40 per cent of executives in the marketing industry.

In 2011, it would seem that SMEs are finally beginning to explore the potential of e-mail marketing. At the turn of the year, BtoB Magazine discovered that 63 per cent of business owners were planning ways to increase spending on e-mail marketing. Some weeks later, the 2011 Digital Marketing Outlook Survey found that 70 per cent of firms and advertising agencies were aiming to focus on niche e-mail marketing campaigns.

Ultimately, despite the continued use of printed campaigns and the increasing presence of social media advertising, it would appear that SMEs in the UK are set to rely more heavily on e-mail marketing over the coming years.

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